Charge a tax and other questions.

[Tod Lowe]

Hey Guys.
Im going to try and start selling on the Internet now. I have a few questions.

I have a buy it now button set up on my website. Do I charge my states sales tax on the knife?


At what point do you stop flying under the radar and become a legit business?
I read the "what business entity should I be" thread and never could decide. I guess an LLC?
Why fly under the radar anyway other then not having to mess with being a business?

I have a knife for sale on my website. I never did see on the pay-pal site how to have the quantity as "one" in case the improbable happens and two people hit buy it now at the same time.

[Dan Pierson]

It obviously depends on your state laws, but generally you have to charge state sales tax if the buyer is also in your state.

[Ernie Swanson]

It obviously depends on your state laws, but generally you have to charge state sales tax if the buyer is also in your state.

Yeah, When I was talking to a cpa he said that I only charge sales tax when the knife is being sold in state.

[Tod Lowe]

Definitely not a question to ask on a public forum.:confused:

Why not? Im trying to do it the right way.

[Tod Lowe]

Yeah, When I was talking to a cpa he said that I only charge sales tax when the knife is being sold in state.

From buying off the internet I thought that was the case but I wasnt sure. Thanks.

[Mike Carter]

You are not required to collect Ky state sales tax on anything sold and/or delivered out of state. In state, yes.

However, Ky does expect you to pay KY tax on anything you buy from out of state.

If a local customer askes me if I charge tax I answer "No I don't charge tax, the state does, and I am required to collect it."