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Sales tax and income tax question .... I have some online…

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sales tax and income...

sales tax and income tax question .... I have some online businesses .. sell digital products and services .. thus far no need for a sales and use tax id ... however, i'm considering selling some tangible products online via a dropshipper ... my nexus is in GA ... the dropshipper has a nexus in CA and NC ... so my understanding is that I'd need to get sales and use tax numbers for CA, NC, and GA .. my question is: will i have to file and declare income tax in CA and NC? I'm not getting any revenues from there and it's a 3rd party ...

Submitted: 3 months ago.Category: Tax
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Answered in 34 minutes by:
3/28/2018
Tax Professional: Lev, Tax Advisor replied 3 months ago
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 33,137
Experience: Taxes, Immigration, Labor Relations
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So far - as you conducting NO business activities in CA and NC - for income tax purposes - your nexus is only considered in GA.

For sales tax purposes - nexus is determined differently - and collecting sales tax for CA and NC customers woudl be required.

As you will be using the drop shipper provider - you may verify with them - if they would handle sales tax requirements in these states?

If yes - they will collect sales tax on your behalf and remit these amount to corresponding taxing authorities.

In this case - you would not need any additional registration.

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