Thanks for asking!
Google Answers Researchers can't offer legal or professional advice,
but we can provide basic information about the obligations and
responsibilities that go with online sales. I've made the assumption
you're located within the US.
Sales Tax
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"The obligation to pay sales tax is determined by the location of the
buyer, not the seller. If a business does not have a physical presence
in a particular state, such as a store or warehouse, it is not
required to collect sales tax for sales from customers in that state.
In legal speak, this connection between sales and location is referred
to as a "nexus" and was established by the U.S. Supreme Court in Quill
v. North Dakota, 504 U.S. 298 (1992)."
You'll want to read the full article at:
http://www.nolo.com/lawcenter/ency/article.cfm/ObjectID/87F6DD43-E6F2-4DFE-BCDB8E2E85DFF80B/catID/806B7BA0-4CDF-4221-9230A3135E2DF07A
From the Buyer's Perspective
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Buyers living in states that collect sales tax are technically
required to pay the tax to the state. When it is paid to the state by
the buyer, it is called a use tax, rather than a sales tax.
"Some states, including Connecticut, Maine, Nebraska, New Jersey and
North Carolina, have changed their attitudes and are stepping up
efforts to collect use taxes. But bureaucracy, complex tax rules and
limited state resources have thus far prevented most states from
pursuing use taxes. Since state governments are losing substantial
revenue, the collection of use taxes may become a priority if the
federal government continues its ban on Internet e-commerce taxes."
http://www.nolo.com/lawcenter/ency/article.cfm/ObjectID/87F6DD43-E6F2-4DFE-BCDB8E2E85DFF80B/catID/806B7BA0-4CDF-4221-9230A3135E2DF07A
Additional Sales Tax Resources
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Sales Tax Institute
http://www.salestaxinstitute.com/
eCommerceTax.com
http://www.ecommercetax.com/index.htm
End of the Beginning - Internet Sales Tax
http://www.internetnews.com/ec-news/article.php/1499501
Business Licenses
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You may or may not need a business license, depending upon your own
role in the enterprise. As an author or consultant, you can be
considered an independent contractor, exempt from business licensing
in most locales. You may wish to incorporate or form a legal
partnership among your associates, to protect your individual time and
monetary investments in the project, or even form a non-profit
organization.
You should consult your local business license division, which may be
a city department, or a function handled by the county (clerk's
office?), depending on your location. They will best be able to advise
you specifically on the local requirements for business licensing.
You should probably consider a consultation with a local professional:
tax advisor, business consultant, or attorney. Or start with a free
consultation with S.C.O.R.E., the Service Corps of Retired Executives,
who can assist you with business planning, including familiarization
with all the local requirements. S.C.O.R.E. has nearly 400 local
chapters, nationwide, plus an excellent website.
S.C.O.R.E. Counselors to America's Small Business
http://www.score.org/
Further Internet Business Resources
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Do I Need A Business License
http://experts.about.com/q/2006/3178242.htm
Small Business Advisor FAQ
http://www.isquare.com/faq.cfm
I hope you find this information helpful.
larre-ga
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