registering out of state to avoid sales tax?

[Dolph]

I'm starting a retail dot com in california where I live, and realizing that out of state companies will have big price advantage over me. Arnold now has an almost 10% sales tax in place.

Is there any way for me to register this new dot com in another state and avoid charging Cal sales tax to my customers?

[roban]

If you have a business license in CA I don't think it matters where the dot com is registered, you'll still be liable for sales tax in CA. Maryland used to have relaxed laws concerning corporate licensing and years ago it was the place to register a business but I don't know if that still holds true.

I'm just wondering if you don't charge sales tax, do you have to pay sales tax.

[Dolph]

If you have a business license in CA I don't think it matters where the dot com is registered, you'll still be liable for sales tax in CA. Maryland used to have relaxed laws concerning corporate licensing and years ago it was the place to register a business but I don't know if that still holds true.

I'm just wondering if you don't charge sales tax, do you have to pay sales tax.

I don't have a business license yet. I'm considering getting one in Nevada, if by doing so, I can avoid charging my customers Cal sales tax.

[JEccles]

I don't have a business license yet. I'm considering getting one in Nevada, if by doing so, I can avoid charging my customers Cal sales tax.

It does not matter where you register the company. If you have a physical presence in California, you will need to charge sales tax to those orders shipping within that state. The company I work for has it's headquarters and business license in Wisconsin. However, we have outside sales people and charge tax in those states where they are located.

[Dolph]

It does not matter where you register the company. If you have a physical presence in California, you will need to charge sales tax to those orders shipping within that state. The company I work for has it's headquarters and business license in Wisconsin. However, we have outside sales people and charge tax in those states where they are located.

I live in California, but don't have a place of business out here, sales office or anything like that. I could hire a fulfillment company out of state as well, so I'd actually be shipping from out of state. But I would have to take orders over the phone out here from my home, I guess. Oy! Sounds like I'm stuck. 10% sales tax! Sounds like the only way out, is to actually move out.

If anyone knows a possible way around this, please let me know.

[Dolph]

I live in California, but don't have a place of business out here, sales office or anything like that. I could hire a fulfillment company out of state as well, so I'd actually be shipping from out of state. But I would have to take orders over the phone out here from my home, I guess. Oy! Sounds like I'm stuck. 10% sales tax! Sounds like the only way out, is to actually move out.

If anyone knows a possible way around this, please let me know.

Well, it may not be as hard as I thought. All I need to do, apparently, is hire a registered agent in NV or Wyoming or some other sate to serve as my business address. I've found them as low as $99/year. As long as I'm not shipping out of CA, I'm in the clear. I'll charge NV sales tax for my NV customers, and all others will be sales tax free including my CA customers.

Sorry, CA, but you finally drove me away.

[The Old Sarge]

If you ship from your home in California, and/or to a receiving address in California, I doubt there's a legal way to avoid the sales taxes.

Even some of the legal methods of avoiding taxes (out-of-state business registration, out-of-state inventory/shipping) may soon be shut down simply because the individual states are tired of people not paying the taxes due.

[tunnelboy]

As an e-commerce seller in CA, it's painful as can be. Our rate is 9.75%

While I can't prove I'm losing customers because of the sales tax, it seems hard to believe it's not substantial. I know when *I* shop, I avoid CA online stores like the plague.

CA will get the message.... when it's too late and ALL the employers and businesses have left.

My one word of advice is not to sell on Amazon. They don't collect sales tax on your sale, but you're 100% liable for it. So you have to eat that 10% on top of their healthy commissions.