Your Small Business and Taxes, What You Need to Know

Small business and taxes go hand in hand. You’ve started a small business online, and while it’s going well, you’ve never thought much about taxes….until now! Its that time of year, and suddenly you realize that you’ve got a small online business. Oops, how did that happen?I was just playing around on line and made a little money. If you made over a certain amount my friend, it’s time to file taxes.

Online retailers are not exempted from paying taxes. With confusing rules and laws, how do they all apply to you, the online business owner? If you’re a business owner, it’s time to “man up” and handle yourself like a business.

Let’s talk sales tax. Did you know that you’re responsible for it? You should be collecting it, along with paying taxes if they are physical products you’re selling. Digital products, and it’s a little different. Here’s the scoop, sales made in your state may need to be taxed, where as sales in another state may not need to be. You’re paying based on your business location.

Listen, don’t panic. Keep good records, speak with an accountant and learn what you’ll need to know. It doesn’t have to be scary. It’s the lack of information that makes it seem so daunting. Be in the know, and figure out what you’re responsible for…it’s as simple as that.