If i start a ecommerce website and collect sales tax to pay government taxes, do I have to register it as a bussiness?
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If i start a ecommerce website and collect sales tax to pay government taxes, do I have to register it as a bussiness?
yes
If you collected the tax but did not pay it to the taxing authority, you'd be committing fraud.
Well, that was not exactly what I meant (: So, s there any way to open an ecommercing website without registering a bussiness?Quote:
Originally Posted by The Old Sarge
Quote:
Originally Posted by jpbhot
Sure. Just don't collect tax. If you don't collect tax you don't pay tax. You'd lose credibility with your customers and would be able to use a company name when you collect money for your products. At some point you might get caught and be liable unless you paid personal income tax on it. An accountant's advice would be what you should be seeking.
I hope you didn't think I was accusing you of anything. :0) It was simply an observation of a particular situation.Quote:
Originally Posted by jpbhot
What I should have made clear is, if you do not have a legal business entity and you collect sales taxes, you will have a hard time paying those taxes to the proper authority. They will not recongize you because you are not a legal entity and therefore not "authorized" to collect taxes in the name of the taxing authority. Part of 'becoming legal' involves applying for and being issued a tax permit/certificate.
As Roban suggests ... you should seek professional advice from someone versed in your local, applicable laws.