itlnprncss
Junior Member
What is the name of your state? Illinois
this is a two part question:
A friend is thinking of starting an internet company where he will be selling tanning lotions to consumers in the US. Will he be liable for charging sales taxes & paying use taxes? I thought that there is an internet tax freedom act that states that internet purchases are tax exempt. Would he be required to register in the state of Illinois for sales & use taxes - even if he is not required to collect sales taxes?
He is on the fence as to whether to form the business as an LLC or an S corp. Other than the Articles of Incorporation / Organization (depending on what he decides) what other steps will need to be done to form the business entity?
Thanks
this is a two part question:
A friend is thinking of starting an internet company where he will be selling tanning lotions to consumers in the US. Will he be liable for charging sales taxes & paying use taxes? I thought that there is an internet tax freedom act that states that internet purchases are tax exempt. Would he be required to register in the state of Illinois for sales & use taxes - even if he is not required to collect sales taxes?
He is on the fence as to whether to form the business as an LLC or an S corp. Other than the Articles of Incorporation / Organization (depending on what he decides) what other steps will need to be done to form the business entity?
Thanks