Tuesday, August 16, 2011

How to tackle sales tax as a virtual/home-based business?

Myself and three other creative/business partners have recently set up a small design studio and stationery shop, selling our products mainly online and at craft fairs and will eventually extend our business to include commissioned work. Between the four or us, we are located in 3 different states and have chosen one state (OH) as our base for shipping out products purchased from our online store. Our LLC is based in Wyoming and has no sales tax. This is where I get a little confused though. I know for craft fairs, depending on the state, we can get a temporary license to collect tax on our goods. If our LLC is based in WY, and we're shipping primarily from OH, do we need to have a license in OH? We're a little hesitant to do it only b/c we'd be shipping goods from someone's home vs a business location. And how do we tackle services when we start doing work directly with customers? Is a service like a commissioned design fall under the range of what is taxable and again, how do our locations play into this? Thanks in advance for the help!

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