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David Weilbacher, Esq.
David Weilbacher, Esq., Attorney
Category: Business Law
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Experience:  Criminal & Civil Litigation, Estate Planning, Probate, and Bankruptcy
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Im starting a online dropship business What tax law do I did

Resolved Question:

I'm starting a online dropship business What tax law do I did to know about as far as sells tax
Submitted: 8 years ago.
Category: Business Law
Expert:  David Weilbacher, Esq. replied 8 years ago.
Hi. I would like to help you. What state are you in?
Customer: replied 8 years ago.
I want to know about sales tax laws I need to know about when dealing with out of state and out of country buyers also do I need to register my bussines with the state and or federal officals? I will selling on Ebay and other web based sites as a drop shipper I have no partners
Expert:  David Weilbacher, Esq. replied 8 years ago.
You use the term "dropship". Are you shipping products that someone else has sold, and the seller is using you as the supplier and shipper, or are you the actual seller?
Customer: replied 8 years ago.
I'm from wisconsin I am selling the product on line on sites like eBay .com and my own web site for suppiers to ship This called drop ship sales i handle the orders and collect the payment I do not hadle the product
Expert:  David Weilbacher, Esq. replied 8 years ago.
If an online retailer has a physical presence in a particular state, such as a store, business office, or warehouse, it must collect sales tax from customers in that state. If a business does not have a physical presence in a state, it is not required to collect sales tax for sales into that state. This rule is derived from aXXXXX Quill Corp. v. North Dakota (91-0194), 504 U.S. 298 (1992), decision which held that mail-order merchants did not need to collect sales taxes for sales into states where they did not have a physical presence.

So, you will need to collect sales taxes for any sales to people in Wisconsin, but no other state.

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