Computer's Software Business

[ricardobarreto]

What is the name of your state (only U.S. law)? New York

Dear, Hello My question is on the market for computer software.
My company is established in the state of New York and some questions about sales taxes arose.
My business model is through software liscencing, or charge us a monthly amount so that our clients are entitled to use the software. All start month, if desired, is license is renewed and a new payment is made.
My questions are:
1 - Is configuration software liscencing is subject to sales taxes?
2 - If you are subject to the sales taxes, it will be charged on all payments, that is, throughout the license renewal? Or is applied only on the first license?
3 - What other taxes am subject in this type of business.

Remembering that my company is establishing in the state of New York.

I wait for your comments, thanks!!!!!!

 

[quincy]

What is the name of your state (only U.S. law)? New York

Dear, Hello My question is on the market for computer software.
My company is established in the state of New York and some questions about sales taxes arose.
My business model is through software liscencing, or charge us a monthly amount so that our clients are entitled to use the software. All start month, if desired, is license is renewed and a new payment is made.
My questions are:
1 - Is configuration software liscencing is subject to sales taxes?
2 - If you are subject to the sales taxes, it will be charged on all payments, that is, throughout the license renewal? Or is applied only on the first license?
3 - What other taxes am subject in this type of business.

Remembering that my company is establishing in the state of New York.

I wait for your comments, thanks!!!!!!

I am not understanding your business.

Computer software is protected under copyright laws. Where in your business plan does the copyright holder come in?

Here is a link to New York's business taxes: https://www.tax.ny.gov/bus/

 

[ricardobarreto]

License

Thanks "quincy" for the answer, let me try to explain better:

I work with software development. We have software that is marketed through licenses, ie, we charge a monthly basis so that our customers can use our software.

In this way, a client requests the software, available in a software license, which is valid for one month. If the customer wishes to continue with the software, the license must be renewed monthly.

My questions is how realized the taxation of taxes, referring to the "sales taxes".

In this case, we are not selling software as a product in which it pays once and have the software forever, but with this software licenses where they should be renewed so that it can be continued using it.

How is the collection of taxes in this case?

There is the obligation of "sales taxes" in this case?

If so, the "sales taxes" should be charged only in the first licenses and free in the other?

Or in all renewals of licenses to "sales taxes" will be charged again?

If I make a contract for example one year with my client, where each month he must renew the license, the sales taxes will be charged only once or on all renewals (monthly)?

I found no material that clearly explain how the tax software licenses and if they can help me, it would be very important for my business.

Thanks, i wait for your help!

 

[Zigner]

The tax would be charged with each "sale" (ie: monthly).

 

[ricardobarreto]

Licenses

The tax would be charged with each "sale" (ie: monthly).

Then, each time the license is renewed, a new tax to be generated?

Even i did a contract that i will set up for one year, for example!?

 

[quincy]

Thanks "quincy" for the answer, let me try to explain better:

I work with software development. We have software that is marketed through licenses, ie, we charge a monthly basis so that our customers can use our software.

In this way, a client requests the software, available in a software license, which is valid for one month. If the customer wishes to continue with the software, the license must be renewed monthly.

My questions is how realized the taxation of taxes, referring to the "sales taxes".

In this case, we are not selling software as a product in which it pays once and have the software forever, but with this software licenses where they should be renewed so that it can be continued using it.

How is the collection of taxes in this case?

There is the obligation of "sales taxes" in this case?

If so, the "sales taxes" should be charged only in the first licenses and free in the other?

Or in all renewals of licenses to "sales taxes" will be charged again?

If I make a contract for example one year with my client, where each month he must renew the license, the sales taxes will be charged only once or on all renewals (monthly)?

I found no material that clearly explain how the tax software licenses and if they can help me, it would be very important for my business.

Thanks, i wait for your help!

If I understand correctly, then, you own the software (you are the copyright holder) you intend to license. I have some question as to how you plan to deactivate and uninstall the software if the customer's license is not renewed, but I imagine you have a plan to handle this.

Here is the same link I provided earlier, but to the specific section that answers your question: https://www.tax.ny.gov/pubs_and_bulls/tg_bulletins/st/computer_software.htm

AND

http://nystax.custhelp.com/app/answers/detail/a_id/997/~/is-computer-software-subject-to-new-york-state-sales-tax?

You might be smart to sit down with a professional in your area of New York to go over your business plans prior to start-up. Good luck.