The Texas House approved a bill that would expand the number of Internet companies required to collect sales tax in Texas.
The bill would change the definition of what it means to have a physical presence in Texas. State Rep. John Otto, R-Dayton, said it would force Internet-based companies to collect sales taxes if they pay marketers in Texas to advertise for them.
Under a U.S. Supreme Court ruling, a company does not have to collect state sales tax if it does not have an office, or some other physical presence, in that state. The tax is still due on those transactions, but the customers are supposed to pay it. They usually don't.
Any individual seeking legal advice for their own situation should retain their own legal counsel as this response provides information that is general in nature and not specific to any person's unique situation. Circular 230 Disclaimer - Advice given in this response cannot be used to eliminate penalties with the IRS or any other governmental agency.Ask a similar question
Is this the first time that you have owned a business?
You might want to start a relationship with a good business attorney and a CPA that understands this type of business. You are likely going to have many questions on taxes and finances in the future, and getting started on the right foot is always better than trying to fix bad mistakes.
If you need help finding someone in your area, let me know. I have a feeling that there are probably some other issues that you have not considered if this is the first time you have owned your own business.Ask a similar question