USA Online Sales and Sales Tax

[Dan Sitler]

Hello Everyone,

I'm setting up an online store and am in the process of incorporating and filing with the state (I live in Georgia). There is alot of 'noise' in entrepreneurial community about structuring my company a certain way to legally avoid paying sales tax. I was hoping someone here could help shed some light on it and let me know if I'm being deceived and potentially setting up a criminal enterprise in the eyes of the IRS.

I have been told NOT to file my company in the state that I live in, and instead file in Wyoming so that I do not have to pay sales tax on my online sales (in any state other than Wyoming which will account for a very small percentage of sales), because sales tax only applies to the state(s) that you entity is operating out of. What bothers me about this is that I live in Georgia, so I would think I would have to pay sales tax for all my sales in Georgia anyway. Any and all sources that are provided as proof of this to me are not from IRS or State Government resources.

Will I be putting myself at a financial disadvantage by choosing to file in Georgia as opposed to Wyoming?

https://www.taxjar.com/guides/intro-to-sales-tax/#the-basics-of-sales-tax

 

[Drmdcpa]

Sales tax applies to the state where the goods are shipped if you regularly ship there.

If you are going to cross state lines, you need to register within each state in which you will be doing business. Whether you are subject to their respective sales tax laws depends on many factors, including but not limited to the state, the volume of sales (both monetary and # of transactions), and what is being sold.

The information you provided is 100% inaccurate. Also the IRS has no concern about sales tax. That is a state issue.

Develop a relationship with a local CPA that has experience with interstate activity.