Sales Tax 101 with Avalara
57:25
2 ай бұрын
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@christiankepler8371
@christiankepler8371 14 сағат бұрын
Trust me unless you are white or Asian forget about American Express ~! I had 790 scores $15,000 split in both business checking and savings accounts with American Express(plus $25,000 with other bus checking accounts too)plus 6 cards 2 bus 4 personal of which 2 are personal charge cards no late on any bureaus llc with $115,000 annual income they never once in 1 year raised limits on any card and there is no pre approval for business lines of credit. Racism and banking are rampant in America for both black & latinos...which is the only reason why they wont give anything....highest limit on personal is amex platinum $5k nothing in terms of being able to do anything with travel or purchases...maybe a restaurant or groceries but that's it. Business cards are a joke ~! I'm taking all but $50 out of Amex bus checking and savings...I still have deposits coming into so that'll remain. Never ever again will I rely... will I promote or have anything positive to say about American Express~! They even locked my cards after approval of last 3 cards 8 months ago while I had 780 scores with $15k in their own bank...had the nerve to have racists from some stupid Asian country who barely spoke English(to point of not being able to understand me or them or about laws like civil rights in America)tell me we have to verify your credit worthiness... Some racist nerve... Amex is all advertising and hot air...I wouldn't even bother to get any cards at all~! Cap1 Venture X gave me $10,000, Chase Sapphire Reserve $12,000 and Citi World-Elite Executive $17,500... Amex is pure advertising hype their 90% over seas racists....period~! amex has nothing to do with relationships or do they even have any way to connect personal and business accounts that is how horrible they are ...so bad I don't trust them to even answer with an American let alone give me any "VALUE " for parking thousands of dollars in either business or savings accounts.
@ArthurGlinkin
@ArthurGlinkin Күн бұрын
Thanks for the great video! I was wondering what happens to sales tax if you haven't hit the economic nexus yet. I know you said that you don't collect and remit, but doesn't the customer have to pay sales tax regardless? What would happen to the sales tax that the customer would pay?
@sueadlib
@sueadlib Күн бұрын
I followed what you said step by step. The sum shown in the excel sheet for the tax exclusive selling price for all states is absolutely not the total sales I made through the year (taxable or non taxable). It is like 5 times what I made. Even if I am not going to pay anything to california, how can I put this very big number? I felt there is something wrong, I went back to Amazon seller central tax report and I found a notice " saying attention combined report is not what you will use for sales tax remittance) I am really not sure. I am not going to put this gigantic number as total sales I made this year. Can you please explain what is combined mean? May be there is something I don't understand, but what I understand very well is that this is not the total sales i made this year.
@LedgerGurus
@LedgerGurus Күн бұрын
This is a very common question, and we have a video that addresses it here: kzbin.info/www/bejne/amKcYoCohN2Sr7s
@HappyTearsVideo
@HappyTearsVideo 3 күн бұрын
Is the cost, to register for sales tax, really over $300 per state, with Avalara? (around $350, I think?)
@LedgerGurus
@LedgerGurus 2 күн бұрын
Yes. There are other options, such as doing it yourself or having another company, like LedgerGurus, do it for you.
@pronasery101
@pronasery101 3 күн бұрын
hello, great video, i am confused a bet because my products sales in graph shows for the year 2024 is $20k and when i generate combine sales tax report for year 2024 its $90K, so which report would you think is accurate to report to CDTFA now?
@LedgerGurus
@LedgerGurus 2 күн бұрын
This is a common question, and we have a video that addresses it here: kzbin.info/www/bejne/amKcYoCohN2Sr7s
@LoanDo-is1lb
@LoanDo-is1lb 3 күн бұрын
Hi! I am in Georgia and trying to purchase product from California. I am a registered business and have a sales and use tax certificate. The supplier is asking me for a reseller permit (they are located in California) is the sales and use tax ID what I should be providing them?
@LedgerGurus
@LedgerGurus 2 күн бұрын
No, they need a California reseller permit and you can only get that by registering for a sales tax permit in CA. The problem with that is that then you have to collect and remit CA sales tax on all your sales there. But you don't want to do that unless you have nexus there. (This download explains everything you need to know about nexus: ledgergurus.com/portfolio/10-steps-to-ensure-sales-tax-doesnt-burn-down-your-ecommerce-business/?KZbin&.) You may just want to pay CA sales tax on your items until you have nexus in CA.
@farhancpa
@farhancpa 4 күн бұрын
What about fr Amazon sellers?
@LedgerGurus
@LedgerGurus 4 күн бұрын
Can you restate your question? I'm not sure what you're asking?
@vinceschmidt7059
@vinceschmidt7059 5 күн бұрын
Very informative. Thanks.
@LedgerGurus
@LedgerGurus 4 күн бұрын
Glad it was helpful!
@KathieCronk
@KathieCronk 6 күн бұрын
I’m trying to help my brother find this answer… he wants to switch from professional seller to individual seller. He is selling less than 40 items a month. He was having a hard time finding a clear answer on whether or not Amazon will continue to handle the sales tax if he makes the switch. I just watched your video and it seems like they will. Can you confirm that? Thank you so much for your informative video.
@LedgerGurus
@LedgerGurus Күн бұрын
Yes, even if your brother switches to an individual seller account, Amazon will still handle sales tax as a marketplace facilitator.
@RohanDesai007
@RohanDesai007 7 күн бұрын
Is this for US?
@LedgerGurus
@LedgerGurus 4 күн бұрын
Yep!
@vanessaaltamar835
@vanessaaltamar835 8 күн бұрын
If I did this for my foreign company, should I fill the boi report?
@LedgerGurus
@LedgerGurus 4 күн бұрын
Yes
@alvisjenkins1305
@alvisjenkins1305 8 күн бұрын
What you need to know about sales taxes if you are one of the millions of retail purchases. In Florida the tax is imposed on the transaction which only the retail seller can make. He or she exercises a taxable privilege to sell tangible personal products in Florida. However if you are not a seller, then you do not exercise a taxable privilege to purchase retail products in Florida. But we all know that the millions of people purchasing retail products are paying transaction or simply sales taxes that we are not liable for. It is easy to confirm this truth. Go online for Florida Statutes, search for Title XIV Chapter 212 F.S. and read section 212.05 and see the intent of the legislature. Nowhere in the entire statute is there the intent of the legislature that you are exercising a taxable privilege to purchase retail products in Florida.
@KitanaTulip
@KitanaTulip 8 күн бұрын
my ui doesnt look like this, i think they updated it again
@LedgerGurus
@LedgerGurus 8 күн бұрын
This video is a couple years old, and needs to be updated again.
@SalesTaxSolutions2000
@SalesTaxSolutions2000 9 күн бұрын
👍
@LedgerGurus
@LedgerGurus 8 күн бұрын
Thank you
@martinmmmm
@martinmmmm 9 күн бұрын
Hi, Do you register for sales tax permit when shopify notifies you about being close to hitting the economic nexus threshold or once you exceed the threshold?
@LedgerGurus
@LedgerGurus 9 күн бұрын
You register once you exceed the threshold. This download will explain it in more detail, and it has an updated list at the end with all the economic thresholds by state and how soon you have to register after passing the threshold - ledgergurus.com/portfolio/10-steps-to-ensure-sales-tax-doesnt-burn-down-your-ecommerce-business/?KZbin&
@martinmmmm
@martinmmmm 9 күн бұрын
@LedgerGurus thank you!
@martinmmmm
@martinmmmm 9 күн бұрын
Hi, are these the same steps for non US residents without SSN but having an EIN?
@LedgerGurus
@LedgerGurus 9 күн бұрын
Yes, but there are some steps you need to do first. Here's a download with that list: ledgergurus.com/portfolio/international-sellers-checklist/?KZbin&
@Atlantic025
@Atlantic025 14 күн бұрын
this video is awesome as a beginner i really got to learn alot about sku from basic thanks alot
@LedgerGurus
@LedgerGurus 12 күн бұрын
Glad you enjoyed it!
@OldRedLogistics
@OldRedLogistics 17 күн бұрын
hi. i have a question regarding sales tax exempt certificate. as a freight transportation company can i use the certificate when I'm buying mechanical parts for my equipment?
@LedgerGurus
@LedgerGurus 16 күн бұрын
Exempt certificates are not intended for personal use or use by your own business. They are also called resale certificates, and the intent is to not pay sales tax since you're passing the sales tax on to the end consumer by reselling the products. If you are the end consumer, then you are supposed to pay sales tax on the parts.
@spookyana1
@spookyana1 18 күн бұрын
Hi, I am Missing SOA Merchant invoices after prviding EU VAT. What should I do? I need it for my accountant so I can pay taxes. Please help!
@LedgerGurus
@LedgerGurus 17 күн бұрын
I'm sorry, but we're not the right ones to answer this question. We only work with US sales tax, not EU VAT.
@LeonardoGonzalez-p9c
@LeonardoGonzalez-p9c 19 күн бұрын
i just closed a deal with a supplier and he is asking me for the state tax form/exemption certificate. is it the SST or the MTC form?
@LedgerGurus
@LedgerGurus 18 күн бұрын
Depends on the state. Some overlap, but others are specific to the form. Also, 10 states don't accept out-of-state resale certificates at all. Links to the forms are in the description of this video.
@LocoTaco20
@LocoTaco20 20 күн бұрын
So if you have inventory stored temporarily in WI (which I had recalled) you have to pay income taxes? What are you paying income tax on the total amount you go payed from amazon for items bought from the warehouse in that state? or your total sales from items sold in general.
@LedgerGurus
@LedgerGurus 19 күн бұрын
I can't really help you with income tax questions because we only work with sales tax, not income tax. I encourage you to contact a tax accountant with these questions.
@TechnobunnY
@TechnobunnY 23 күн бұрын
Hi, Thanks for the video. I have FBA model so my inventory is stored in a state but my threshold value is not exceeding so do I need to register for sales tax in a state where i have physical inventory irrespective of value ? Please help
@LedgerGurus
@LedgerGurus 22 күн бұрын
It depends on the state. Some states consider FBA to create physical presence and some don't. You'll have to research to see which one applies to the state where your inventory is stored.
@TechnobunnY
@TechnobunnY 23 күн бұрын
Hi Thanks for the video, Does this apply to sales through Ebay and Walmart also. That Ebay and Walmart is responsible for paying sales tax instead of us.
@LedgerGurus
@LedgerGurus 23 күн бұрын
Yes it does. They are also marketplace facilitators, just like Amazon.
@TechnobunnY
@TechnobunnY 23 күн бұрын
@LedgerGurus thank you for helping.
@reddyinc
@reddyinc 23 күн бұрын
Great video - Thank you!. Can you please provide examples of how much Texas Franchise tax would be for a business with $10M revenue $4M gross margin $2M income with 100% good shipped to customers outside the state of Texas.
@LedgerGurus
@LedgerGurus 23 күн бұрын
Here's what the website says about it: "An entity, including a combined group or an entity with zero Texas gross receipts, can file using the EZ Computation if it has annualized total revenue of $20 million or less. An entity with zero Texas gross receipts need only calculate total revenue and enter zero for Texas gross receipts." Hope that helps.
@reddyinc
@reddyinc 23 күн бұрын
@@LedgerGurus Thank you! What are considered "Texas Gross Receipts". If ecommerce company based in Texas but ships goods to customer outside the state, those are not counted as Texas Gross Recepits? bit confusing.
@LedgerGurus
@LedgerGurus 23 күн бұрын
@@reddyinc "Texas gross receipts" means all your sales into Texas. Here's the link to all the definitions for the form: comptroller.texas.gov/help/franchise/ez-compute.php
@whocarez98
@whocarez98 26 күн бұрын
Should I get both of the certificates to cover states that are not on the list of the other?
@LedgerGurus
@LedgerGurus 26 күн бұрын
Yes, and then there will be 10 states that are not covered on either of them. You'll just have to wait to reach nexus there so you can register for a permit and then get a state-specific resale certificate.
@Dean-gi8ie
@Dean-gi8ie 29 күн бұрын
Ok question do I file taxes for it even if I made zero income as well or?
@LedgerGurus
@LedgerGurus 28 күн бұрын
Do you mean income taxes or sales tax?
@Dean-gi8ie
@Dean-gi8ie 28 күн бұрын
@LedgerGurus either I made LLC in August and done nothing still ltryna get chase bank application, but I got ein
@LedgerGurus
@LedgerGurus 26 күн бұрын
@@Dean-gi8ie We don't do income tax, but we can certainly help you with sales tax. This free masterclass is probably the best place to start: kzbin.info/www/bejne/n33GdHmNjb-LeaM
@angelawang186
@angelawang186 Ай бұрын
As amazon seller, If I have sales over the threshold of the state, E.g. NY state, do I need to file sales tax returns on an annual basis? I registered in CA.
@LedgerGurus
@LedgerGurus Ай бұрын
If you're over the threshold, you need to register and they'll let you know how often you have to file. Typically it's monthly.
@josephyves2377
@josephyves2377 Ай бұрын
I do have a physical business is the process would be the same? Please help me
@LedgerGurus
@LedgerGurus Ай бұрын
Yes, the process is the same. If you have more questions, you can schedule a sales tax consultation with our experts: calendly.com/ledgergurus-sales-tax/
@Cece_m2
@Cece_m2 Ай бұрын
Im from Vietnam and want to do drop shipping with USA Market. Should I register my business in my country or in the USA? and should I enable collecting tax even I am not in the USA?
@LedgerGurus
@LedgerGurus Ай бұрын
It is up to you where you register your business. Do not start collecting sales tax until you have nexus. Watch our free masterclass for more information about sales tax and how it works. kzbin.info/www/bejne/n33GdHmNjb-LeaM
@LedgerGurus
@LedgerGurus Ай бұрын
Let LedgerGurus take the stress out of your sales tax compliance. Our experts handle everything from setup to audit preparation, so you can focus on growing your business. Schedule a free call with us today and let’s build a sales tax strategy that keeps your business compliant and worry-free! ledgergurus.com/ecommerce-accounting-services/sales-tax/?KZbin&
@redemptionshield
@redemptionshield Ай бұрын
Do you have a plugin that can pull together all the sales of each state. I have not hit any thresholds.
@LedgerGurus
@LedgerGurus Ай бұрын
No, but if you download all your sales reports, you can pull them together with a pivot table. We describe how to do that in this blog post: ledgergurus.com/amazon-sales-tax-report/?KZbin&
@sichlerfarmsinalbuquerque7337
@sichlerfarmsinalbuquerque7337 Ай бұрын
AMAZINGLY CLEAR AND CONCISE EXPLANATION of internet sales tax! You have listened to so many people try to explain tax,and they are incredibly complicated or don’t come close to just giving a few minutes of explanation as you just did!! Thank you!
@LedgerGurus
@LedgerGurus Ай бұрын
You're very welcome! Glad it was helpful. :)
@luvlivlyfe
@luvlivlyfe Ай бұрын
Thank you for this video. I had no clue what I was doing until watching this.
@LedgerGurus
@LedgerGurus Ай бұрын
You're very welcome! Glad we could help. :)
@JocelynC-v7j
@JocelynC-v7j Ай бұрын
Hi there, how do I get my filing frequency if I’m not required to get a sellers permit due to selling in the market place (Amazon / Etsy) ? Thanks !
@LedgerGurus
@LedgerGurus Ай бұрын
If you don't have to get a sellers' permit, you also don't need a filing frequency.
@LedgerGurus
@LedgerGurus Ай бұрын
Sales tax compliance doesn’t have to be overwhelming. At LedgerGurus, we specialize in helping eCommerce businesses like yours navigate the complexities of sales tax laws, avoid costly penalties, and stay audit-ready. Don’t wait until a state auditor comes knocking-schedule a call with our sales tax experts today and get the peace of mind you deserve. Let’s work together to protect your business and keep you focused on what you do best-growing your sales! ledgergurus.com/ecommerce-accounting-services/sales-tax/?
@san..
@san.. Ай бұрын
Your the goat. Cant find this info in yt. What if you want to have a pod website where you ship from china to usa, orother countries and i dont handle anything - im from california, usa.
@LedgerGurus
@LedgerGurus Ай бұрын
I'm not sure I understand what your question is. Will you please restate it?
@san..
@san.. Ай бұрын
​@@LedgerGurus So there is two sites. Payhip and Shopify. I found out that sales taxe in payhip I have to do taxe rates and maybe manage and gave me a bit anxiety since that sopped me from continueing. I use Etsy where that is automated. In shopify, they handle this in the beginning until you pass a cap. There is a monitoring thing I believe. My question was that I want to sell products shipped from China to other countries, yet im from California. Even though I say this, I believe I still have to calculate sales tax. I don't have any hurdles except this part when want to create a website to sell products.
@TuGBAmeriCA
@TuGBAmeriCA Ай бұрын
im based and registered in california. my supplier doesnt accept Ca Resale Cert. for dropshipping. they want me to provide MTC form. actually i couldnt understad that how i fill out te form. Do i need to put my ein number or seller id on the lines of every states? some of the pages the people talk about that some states need sale tax id and some of them need out of state id. i couldnt understand. i just have seller id by state of cali.
@LedgerGurus
@LedgerGurus Ай бұрын
For situation-specific questions like this, I encourage you to schedule a consultation with one of our sales tax experts. They can walk you through exactly what you need to do. Click here to schedule: calendly.com/ledgergurus-sales-tax/?KZbin&
@mickelangeantoine3589
@mickelangeantoine3589 Ай бұрын
I think in this case it's better for an amazon seller to use a non resident LLC registered in Wyoming. Less tax liability. Waww
@LedgerGurus
@LedgerGurus Ай бұрын
Probably so. Good luck with your business!
@PlonnMn
@PlonnMn Ай бұрын
Hello, I have a limited liability company, but I do not reside in the United States. I use Shopify, but I do not know how to send tax reports and how to collect or pay them. Can you explain it in a special video or guide?
@LedgerGurus
@LedgerGurus Ай бұрын
We've written a couple of blogs on the subject: ledgergurus.com/shopify-sales-tax-report-how-to-find-understand-it/?KZbin& AND ledgergurus.com/shopify-sales-tax-setup-where-and-how-to-collect/?KZbin&
@higormuros
@higormuros Ай бұрын
One of the bests videos I have ever watched about taxes. Congratulations!
@LedgerGurus
@LedgerGurus Ай бұрын
Thank you so much. I'm glad it was helpful for you.
@patricianurchandra7285
@patricianurchandra7285 Ай бұрын
Hi, I am located in New Zealand, and my manufacturing partner + drop-shipper is in Connecticut. Am I able to be sales tax exempt with the SST form? Thanks for your help.
@LedgerGurus
@LedgerGurus Ай бұрын
You should be able to. This video will give you some ideas of the identification numbers you can use on the form: kzbin.info/www/bejne/f6WQh6GLnpira5o
@a7xfanben
@a7xfanben Ай бұрын
Thanks for the helpful playlist!
@LedgerGurus
@LedgerGurus Ай бұрын
You're very welcome! Glad it was helpful.
@jakubmatus3799
@jakubmatus3799 Ай бұрын
thanks for the video how about for missouri whats the best direction the sst or mst?
@LedgerGurus
@LedgerGurus Ай бұрын
Missouri is not on the SST form, but it is on the MTC form.
@LedgerGurus
@LedgerGurus Ай бұрын
If you need help with this process, reach out to LedgerGurus. We're happy to handle the details for you so you can focus on selling through this holiday season. ledgergurus.com/ecommerce-accounting-services/sales-tax/?
@YaGirlOutside
@YaGirlOutside Ай бұрын
Does Printify, ETST, etc. POD count as resale OR are we purchasing wholesale and selling RETAIL, thus the dropshipper (Printiful, etc.) is charging ME (the seller) sales tax which I pay THEM (the dropshipper), but they pay to my state (and all the others) and I don't need to worry about paying sales tax in my physical state? That's the part I'm trying to understand. I want to start a POD DBA, but want to make sure I pay my GA sales taxes if I'm required to but do not want to double pay if the dropshipper is already paying GA on my behalf. Does that make sense? Thank you!
@LedgerGurus
@LedgerGurus Ай бұрын
Yes, the dropshipper is required to charge you sales tax on all transactions into states where they have nexus. You still need to register in your own state (GA). When you do that, you can send them a resale certificate and then they won't charge you for GA anymore and you'll be responsible for collecting and remitting on all the GA sales. You'll do this for every state where you have nexus.
@YaGirlOutside
@YaGirlOutside Ай бұрын
@@LedgerGurusThank you so much for your response. This makes it very clear!
@martinmmmm
@martinmmmm Ай бұрын
Hi, Do I understand it correctly that I can apply for the FEIN using the SS-4 form over the phone even if I'm an international sole proprertior from Europe? I don't have US LLC or US address. Thank you for your help
@LedgerGurus
@LedgerGurus Ай бұрын
Yes. See here for more details: www.irs.gov/instructions/iss4
@teachher2fish491
@teachher2fish491 Ай бұрын
🤔Do you use the *Profit First* system?🎉
@LedgerGurus
@LedgerGurus Ай бұрын
Yes, we do.
@a7xfanben
@a7xfanben Ай бұрын
Great overview, thank you
@LedgerGurus
@LedgerGurus Ай бұрын
Glad it was helpful!
@martinmmmm
@martinmmmm Ай бұрын
Hi, Can I still apply for FEIN online if I have SSN from previous work in US but I have a sole properiotorship in EU? I don't have physical presence in US, no US address
@LedgerGurus
@LedgerGurus Ай бұрын
We cannot answer this. You'll have to contact the IRS and ask them.