Have a Tax Question? Ask a Tax Expert
Welcome to Just Answer. My name is ***** ***** I will be happy to assist you.
Your federal tax obligation is not affected by the state you open and operate the business.
You will need to research the pros and cons of establishing the business in Oregon or Washington as to your state tax liabilities.
As a bit of general information to get you started,
WA has use tax, personal property tax, B&O. You may have to charge sales tax on your business activities. WA has no state income tax on earnings.OR has some similar taxes plus income tax on earnings.
Please let me know if I can assist you further.
Thank you and best regards,
I provided my answer to open a dialogue with you.
These were your specific questions:
For tax purposes, which state, Oregon or Washington, would be the best (least amount paid to the IRS) to open and operate the business in?
My answer was that neither will affect what is paid to the IRS. Federal tax liability is different from state tax liability.
And what would be the best way to structure the pricing (i.e. charging the monthly fee for the access point product and providing the included marketing services for free, or vice-versa)?
Only you can determine which pricing method to use that will provide the most profit for your business.
Not a problem.