Sales Tax Online

[Zionist]

What is the name of your state? New York.

If I'm selling strictly online, and my business is registered in New York, and I'm dropshipping to New York consumers and my warehouse is located in New Jersey, do my NY consumers pay any sales taxes?

 

[abezon]

You collect & remit sales taxes on NY and NJ purchases. Contact the state departments of revenue for assistance.

 

[Zionist]

Okay well I was reading up a bit, and I found something interesting.

http://www.tax.state.ny.us/pdf/publications/sales/pub750_804.pdf

"If the only connection you have with New York State is the delivery of your products into the state by US Postal Service or common carrier, you are not required to register or collect sales tax. This, some out of state businesses (including some mail order companies) may not have suffieicent connection with New York State to be required to collect and remit sales tax."

I plan on having an internet store that will simply be registered in NYC, but the physical location of our products and warehouses will be located in other states. There will be no physical presence of my company in NYC except for my registration document, bank account, and possibly some advertising.

 

[Snipes5]

Contact the state departments of revenue for assistance.

Why would you want to have anything to do with a state that has such high tax rates anyway? Register in Florida, Nevada or Alaska, you'll probably be better off.

Snipes

 

[Zionist]

I would have to reside in the state where the sole proprietor is registered.

 

[Snipes5]

Which means that Dropshipping isn't the only thing you do in New York, you actually live there, and that is where you conduct your business.

Snipes

 

[Zionist]

Conduct my business, but it clearly says a physical presence. I have no physical storefront in New York nor anywhere else. My only physical presence is where the product is coming in from and its definitely not coming from New York.

 

[abezon]

The requirement for a "connection" to NY is satisfied by you living in the state, registering your business in the state, or having a business warehouse in the state. Quit arguing about the definition. Either suck it up & pay NY taxes on NY sales or incorporate in NJ.

 

[Zionist]

But I contacted SBA.gov and they said I wasn't required to pay the taxes for just supplying customers in New York with products from other states because its mailorder.

Quit arguing about the definition? I'd rather not.

PHYSICAL PRESENCE -

Do I have retail facilities, a warehouse or any office space in New York? Maintaining retail or warehouse facilities will give you physical presence. Also, having an office for employees, even for business activities unrelated to mail order sales, will give you physical presence.

Do my employees or I enter New York for purposes of taking and transmitting orders from New York? If your employee or independent contractor go into New York to take or transmit orders your business may have physical presence in New York. However, contracting with a common carrier to deliver mail order goods does not constitute physical presence.

Do my delivery vehicles frequently enter New York for purposes of delivering property? Frequent deliveries in New York by your trucks will give you physical presence in New York. An occasional delivery, however, may not constitute physical presence.

 

[Zionist]

How about this...

TO WHOM IT MAY CONCERN:

I’d like to register a sole proprietor in Delaware, but I reside in New York. The purpose of this is to register a DBA for a strictly online retailer of computer products. Would I still be able to register a sole proprietor in Delaware even if I don’t reside there or have an address in Delware?



If I'm selling strictly online, and my business is registered in Delaware, and I'm advertising mostly in New York and my warehouse is located in New Jersey and other states, do New York and Delaware consumers pay any sales taxes? I really don’t have a physical presence in New York other than delivery trucks that aren’t mine delivering packages that the warehouse sent out.

Thanks for reading.

 

[Snipes5]

Hey, it's a free country.

If you don't like the answers here, go find someplace else to argue with people who are merely explaining the tax law.

We don't really care if you want to commit fraud, because we're not signing your tax returns.

Have a nice day.

 

[Zionist]

Its merely some constructive dissent. Just looking for clarification. Since you will now be exiting my thread, I bid you good luck Snipes5.

 

[taxcurious]

But you still live there.

 

[Zionist]

Still live there, but my the business would be registed in delaware or Florida. The only physical presence is that of my advertising, which doesn't fully qualify as a nexus, meaning I'm not liable for collecting taxes?

Having my business registed in Delaware, a sales tax free state, would mean I wouldn't have to worry about charging taxes to Delaware orders either.

Thats just my view.