We believe that finances are the heartbeat of every company and should be a major driver behind the decisions they make. Quality finances start with good accounting. That’s where LedgerGurus comes into play. We have been relieving small- to medium-sized businesses of the burden of accounting since 2014. During this time we’ve built a team of 60+ accountants and bookkeepers that are there for our clients every single day. Early on, we noticed the unique aspects of ecommerce accounting and decided to become highly specialized in this area. To do so, we have built specialized teams to handle such areas as inventory & COGS, online sales tax, and sales channel bookkeeping. These teams have helped ecommerce businesses grow and become more profitable.
Thank you so much for this video! I had no idea I could file the sales tax this way. In the past few quarters, I submitted and paid the sales tax to the California State Board. Is it possible to get those sales taxes refunded? I would really appreciate any assistance in getting that money back. Thank you for your help.
So regardless of the economic nexus, we still collect sales tax in our physical nexus? As in, I'm in WV, so I will collect WV sales tax no matter what?
Hello! Why is it that other States charges so many different types of taxes? Is this normal? Or is this with Shopify Stores only? I had a client asking why was she charged for state and county at the same time and this has never happened with her orders on other stores (even for bigger businesses). I have a skincare brand and would definitely appreciate your help in understanding the taxes. Thank you! Another ex. I have a client that was charged the following taxes on 1 order: Illinois State Tax Cook County Tax Elk Grove Village City Tax Regional Transport Authority I think it's a lot and most of these are unfamiliar to me. My business is only based in Florida
Hello! Once all revenue and tax amounts are accounted for on the entry...how are you going back and accounting for all payment processing fees on the acctg guru example?
Hello, I'm an NZ business planning to import goods from China into the US, and fulfil them to my US customers from a 3PL in California. Should I get an EIN? And I guess I will need to register for sales tax, at least for the states I have nexus in?
If you are fulfilling from a 3PL in CA, then you will have a physical presence there, which means you will need to register for a sales tax permit in CA and to do that you may need an EIN. Here's more information: www.sba.gov/business-guide/launch-your-business/get-federal-state-tax-id-numbers#:~:text=It's%20free%20to%20apply%20for,as%20a%20corporation%20or%20partnership. I would suggest contacting CA department of revenue and asking if you need an EIN to get a sales tax permit there.
@@LedgerGurus if I use a 3PL in a state without sales tax, will it make things easier as I won’t have to register and pay it in the state I have nexus in?
Is this the same as a stated ID tax (Not a EIN), if you are hiring employees in the near future? Does Florida require that? Everything I search about it only mentions FEIN, and EIN comes up. Nothing about a separate State ID Tax Number. I am single member LLC registered in Florida. This is my first year operating and using the EIN officially. What happens if you don't do this and just file taxes with your regular accountant?
Sales tax and income tax are NOT the same thing. Income tax is something you pay out of your income. Sales tax is something the customers pay with their orders, that you then remit back to the state. I suggest you download our 10 Steps to Ensure Sales Tax Doesn't Burn Down Your Ecommerce Business guide for more information, as well as a chart in the back with all the economic thresholds by state. you can find that here: ledgergurus.com/portfolio/10-steps-to-ensure-sales-tax-doesnt-burn-down-your-ecommerce-business/?RU-vid&
If you need help with the Minnesota Retail Delivery Fee or with sales tax in general, be sure to reach out to us here at LedgerGurus. We have a whole team of sales tax experts who can help you get all of this right. ledgergurus.com/ecommerce-accounting-services/sales-tax/?
Did you edit your tax report spreadsheet to remove the multiple lines generated for one transaction ID? The numbers my report are generating are way over my actual sales and I noticed that they are multiple lines for every transaction.
Are you talking about tracking cost of goods sold? We have a bunch of content on that. Here are a few to start with: - Understanding Inventory and Cost of Goods Sold (COGS) for Amazon Sellers: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-cvS5fPHUVJg.html&pp=gAQBiAQB - COGS Explained for eCommerce Sellers: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-DXV4q9vqRMg.htmlsi=PN-ba3xBM7aHPKyr - How to Create a Journal Entry for Cost of Goods Sold in QuickBooks Online: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-g6sh9iXblUQ.html And here's one to track sales: Amazon Accounting Software A2X | The whys and the hows: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-NEVrsDhHSJI.htmlsi=QQ9xusOH2e0MrVAU
I have noticed that some FBM orders I send to customers do not show any taxes charged from Amazon.. should I be worried about this? These are states like Wisconsin and South Carolina very random states.
This could be a taxability issue but it's hard to say without knowing more about the products being sold and your setup I'd suggest you schedule a consultation with one of our sales tax experts so you can dive in deep and get all your questions answered. calendly.com/ledgergurus-sales-tax/?RU-vid&
I'm learning a lot from you, guys. I've downloaded the PDF guide with the 10 steps, and it's amazing, thank you. Just wanted to let you know that the hyperlinks on it are not working. Thank you so much for sharing all this content!
Amazing video. I have a friend in Miami Florida, he is selling video editing, assistance for podcasting services as sole prop business registered in FL too. Is he required to be registered to withhold sales/use tax? He is having a virtual office. Thank you
"In Florida, the sale of digital products is tax-free given that items sold in digital form aren’t classified as tangible personal property. In other words, services and products are not taxable if all of the goods are delivered digitally." www.sanchelima.com/2022/09/25/sales-tax-and-digital-products-in-florida/#:~:text=Are%20electronically%20delivered%20products%20taxable,the%20goods%20are%20delivered%20digitally.
Excellent video...thank you for posting. I am trying to wrap my head around this so I would like to summarize my understanding with a question. I plan to sell a book (quantity 900) from my garage in southern California. Profits will not break $15,000. I understand that Shopify Tax will calculate sales, generate reports, and inform me when taxes need to be paid per state based on economic Nexus. I also understand that tax filing requirement is different state by state. With an established LLC, when will I know to file taxes? Does the Shopify Tax program inform me?
It should, but it would also be wise for you to be watching it yourself. I also encourage you to download our fee sales tax guide. Besides having the 10 steps you need to follow to be sales tax compliant, it also has a chart with all of the state economic thresholds. It's a very valuable resource! ledgergurus.com/portfolio/10-steps-to-ensure-sales-tax-doesnt-burn-down-your-ecommerce-business/?
Excellent video. I Live in india. I have an e-commerce website offering phone cases (created using ecwid) to US & other western countries. Do I need to collect tax on my website? My website is a POD website, I will have my product made by sites like prodigi, printful once I receive an order. Please explain in simplest possible terms. I do not want to be involved in this tax thing
I cannot answer your question because there are nexus considerations that you haven't mentioned. Your best bet is to schedule a consultation with one of our sales tax experts and get your questions answered. You can do that by clicking on this link: calendly.com/ledgergurus-sales-tax/?RU-vid&.
Thanks, but in that 199 transaction that i may sales in to a state, Do I have the right to tax the products since i need 201 transaction to remit tax to the state, thanks
No. Unless you have registered with the state (which you don't need to do until you've reached the nexus threshold). it is illegal to collect sales tax. If you see that you're getting close to hitting the thresholds, the state will usually give you some leeway to register before you have to start collecting. The state-by-state threshold chart at the end of our 10 Steps of Sales Tax guide will tell you what kind of timeframe you have before you have to start collecting. ledgergurus.com/portfolio/10-steps-to-ensure-sales-tax-doesnt-burn-down-your-ecommerce-business/?
Thank you very much for your response, actually I have registered my LLC with New Mexico, and I am building my drop shipping store with Woo commerce which I believe they collect and remite tax automatically but I wanted to do more outside woocommerce and also with my freelancer services using and secondly Alibaba is requesting for tax exemption I summited the streamlined sales tax government board. Inc documents but it was not accepted Thanks Jick Julius
@@jickjulius WooCommerce is NOT a marketplace, and so they do NOT collect and remit tax automatically. Sometimes suppliers don't accept exemption certificates since they're responsible for the sales tax if they get audited and the certificate isn't valid for some reason.
This video is amazing, thank you so much! I do have a question, you said that it can be easier if the seller and the drop-shipper are located in the same state- why is that? Isn't it all based around where the product is shipping to? So, if the seller and the drop-shipper were both located in CA, but the product is shipping to UT, you would need a valid UT resale cert, and it doesn't really matter that the seller and drop-shipper are located in the same state?
That's true. What she meant is that if both the seller and drop-shipper are in the same state, they have nexus in the same state, and so the seller is responsible for collecting the sales tax.
Ok, thank you. Yes, I need to register for the permit, that’s what I was trying to think of; which I will do tomorrow morning. Thank you for the information about the reseller certificate, now I know to get one of those too for some products I want to drop ship.
Ok, so I am starting up a new Shopify store, using a 3rd party to create and ship the products for me; within the USA. I don’t charge any sales taxes until after I reach 200 sales or $100,000 or whichever comes first. However I must still register and file with my city and federal government, that I have a new business for a sales tax license. (According to their websites). Do I have this information correct? My luck will be that I’m only allowed to make 2 or 3 sales a year, because failure is important to have on purpose. 🤷♂️ Do you still respond to comments with this video? 🤔
Sales tax thresholds vary by state. They are not all 200 sales and/or $100K. We have a complete list of economic thresholds by state at the end of our 10 Steps of Sales Tax guide. I highly recommend you download that. It's got a lot of good information to help you understand sales tax, as well as the thresholds list: ledgergurus.com/portfolio/10-steps-to-ensure-sales-tax-doesnt-burn-down-your-ecommerce-business/?RU-vid& You need to register for a sales tax permit with your STATE government, not city and federal. Here's an article that talks about how: ledgergurus.com/register-for-a-sales-tax-permit/
Thank you for our kind explanation! Here's a quick question. If our company already registered in a state as of the beginning of last year but the sales volume in the last year didn't get the economic nexus threshold at the end of the year. Then can we deregister our business in that sate? If so, how to do it?
Hi! i filled the MTC and SST form, submitted to printify. I just filled form for CA and registered, definitely don't want to pay for CA tax from my pocket as I am not charging customers. In the form i selected 0 sales and do not meet economic nexus for CA. Would I still have to file with them every year even if I have 0 sales tax to show? I am registered in NY. Would love help on this to ensure I am on the right track
So for the AMEX line of credit let us say for 6 month term... Are you paying interest daily on the amount you owe or do you have 6 months to pay it before interest is added? Thanks.
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Your videos have been very informative and helpful for understanding the complication of sales tax duties. I was thinking of starting multiple print on demand stores under one LLC, but Shopify tax doesn't support combining multiple store data into one report for tracking nexus and reporting. Do you know the best software for this? Now I'm thinking I will have to create multiple LLC's instead..
I would suggest you schedule a consultation to discuss the complexities of this with our sales tax experts. You can do that here: calendly.com/ledgergurus-sales-tax/?RU-vid&
Thanks for your video! If I live in Colorado and have a sales cert in CO and sell on Shopify but my dropshipper is in NY can I use my CO sales tax lic to purchase wholesale from them? And do I have nexus now in NY because that’s where my dropshipper is? Hopefully that makes sense 🤪
If you are purchasing product that you are THEN selling to your customer, yes. But if you are dropshipping (which generally means that the customer orders from you -> you order from your dropshipper -> the dropshipper invoices you and sends the product to your customer), then it will only apply for CO customers. And no, you don't have nexus in NY because you don't own the product there; your dropshipper does.
Thanks for this video. Gives good clarity. I have one question though. I use virtual address in Wyoming and i sell private label as amazon FBA seller. I know amazon is collecting sales tax on my sales but do i need to report NIL sales tax to Wyoming state ?
Thank you so much! Love this. One clarification, if I am selling on a marketplace facilitator, I will still have to register in the states for #1 and #2, correct?
Thank you so much for confirming in a concise and clear manner. My county senior investigator called me and said things which are wrong you just explained the points. I urge everyone to watch this even county does not know their own rules.
I can still register as a certified reseller in my state right? I have a complicated situation. I submitted my reseller form to printify, incase I want to sell in person or wholesale manually. I recently launched my shopify store. With Etsy everything was very seamless but now if customer orders something through shopify website, according to economic NEXUS they will only be charged if they are in New york ( since I just launched my store) but if someone from CA buys something they wont be charged sales tax , what will printify charge me? Also, Etsy charges sales tax everywhere and doesn't care for the NEXUS? Sorry this is a loaded question but I could use some help here.
I definitely encourage you to schedule a consultation with one of our sales tax experts to get all of these questions answered. You can do that here: calendly.com/ledgergurus-sales-tax/?RU-vid&
@@LedgerGurus thank you! I watched a few videos and already submitted the MTC and SST with printify. I left another comment on the SST/MTC video. If it's a simple answer of yes or no, would appreciate it. If not, I will probably schedule a call. Thank you again, simply love the videos and explanation.
