Main Index Page

How to Obtain
Your Sales Tax License
Main Index Page
Incorporate Online
Register Domain Name
Get Your Online Store
Get a Merchant Account
I-Business Resources
Main Index Page
How it Works
Start Your Business
Best Selling Products Intro
Best Selling Products Section
DropShip Distributors
Open Your Online Store
Marketing Your Online Store
Running Your Online Store
Frequently Asked Questions
Incorporate Online
Register Domain Name
Get Your Online Store
Get Your Merchant Account
Internet Business Resources
Where sales tax is applicable, then sales tax must be collected on the sales of consumer products. And a sales tax license is nothing more than a certificate which allows you to collect sales tax for sales made within your home state and then mail those funds in to the IRS, quarterly.

A sales tax license, (also known as a dealers’ license, resellers’ license, sales tax certificate, or sales tax id), is also required by most distributors in order to get signed up with them as a reseller for their products. You can obtain your sales tax license by calling 411 and asking them for the phone number of your local IRS office. Then you can contact your local IRS office and request a sales tax license application or you can download the application from your states’ government website.
You can also visit your local IRS branch in person and fill out the sales tax application there. There are no tests, exams or credit checks involved when applying for your sales tax license. All you have to do is fill out the form using your business name on the application and mail it in to the IRS/State Revenue Department.

(NOTE: When filling out the sales tax application form, be sure to enter in “Mail Order” when asked what type of business you’re running.)
Cost for obtaining your sales tax license

In many states, you can obtain your sales tax license for less than $15. In Florida for example, you can obtain your sales tax license for as little as $8. And in some states including California, Massachusetts and others, it’s free.

The following states do not issue sales tax license simply because these states do not have a sales tax:

-New Hampshire

If you reside within any of these states, then you’ll need to provide proof of business registration in order to get signed up with distributors.

But for businesses who sell products within states which do impose a sales tax, then it’s important to obtain your sales tax license first, before contacting distributors.

In order for you to get signed up with distributors you’re going to have to have your sales tax license in hand.

Most distributors will want to see your sales tax license first, before they can discuss product pricing and inventory over the phone. And your sales tax license will be the most important document the distributors will want to see. Furthermore, it’s very important that your sales tax license has your business name on it and not your personal name.
Distributors tend to see resellers who have a sales tax license in their own name as people who are trying to buy products at wholesale for themselves, rather than buying them for resale. For example, when it comes to computer product distributors, most of them will reject your application if they see your sales tax license is in your personal name rather than your business name.

They want to see a sales tax license with a business name on it in order to prove that you are indeed a business and not just an individual looking to buy products at wholesale for your own person use. Therefore, be sure to obtain your sales tax license in your business name and not in your personal name.

Once you have obtained your sales tax license in the mail, then you can proceed to contact distributors, request dealer applications, and get signed up with them. And once you’re signed up with distributors, then you can begin to do business with them.

Your sales tax license will allow you to sell products to the public at retail and then purchase those products from distributors at wholesale.

You’ll be required to collect sales tax from your customers for sales made within your home state. Yet you do not collect sales tax for sales made outside your state.

The IRS will send you quarterly statements requesting payment for all sales tax collected during that period of time. You’ll then be required to send those sales tax funds to the IRS at that time.

Simply write out a check to the IRS for the exact amount of sales tax collected and then send it in on time.
Collecting sales tax online

All ecommerce shopping carts offer the option of adding sales tax to sales made within your home state in order to collect sales tax online. And once your customer is ready to check out from your website and complete their order, your shopping cart will automatically calculate and add the sales tax amount to the order and charge the customers’ credit card for the complete amount of the order with sales tax included.

Then it's your responsibility to separate those sales tax funds from the sale itself and set those funds aside until it’s time to send them in to IRS.

Obtaining your sales tax license is simple. And collecting and turning in sales tax can be just as easy.
<-Back - Main Page - Next->
> The Best Selling Products Online (Intro)
> 1. Books
> 2. Computers, Computer Hardware
> 3. Computer Software
> 4. Consumer Electronics
Main Article Index Page
How to Succeed in Your Online Store Business
How to Start Your Online Store Business
How to Choose Your Niche Market
How to Create an Effective Business Name
Check for Domain Name Availability
How to Register Your Business Name
Should You Use a PO Box or Home Address
How to Choose the Right Business Entity for You
Sole Proprietorships Explained
Corporations Explained
Partnerships Explained
Limited Liability Companies Explained
Incorporate Your Business Online
How to Obtain Your Sales Tax License
The Best Selling Products Online (Intro)
1. Books
2. Computers, Computer Hardware
NEW:Start a Computer Reseller Business Online
3. Computer Software
4. Consumer Electronics
5. Apparel, Clothing
6. Toys/Video Games
7. Videos DVD’s
8. Health and Beauty
9. Music
10. Jewelry
11. Office Supplies
12. Linens/Home Décor
13. Flowers
14. Sporting Goods
15. Footwear, Shoes
16. Small Appliances
17. Tools and Garden
18. Gifts
About Distribution
Choosing the Right Distributors
How to Get Signed-Up With DropShip Distributors
Books Distributors, DropShippers, Wholesalers
Computers, Hardware, Software DropShippers
Apparel, Clothing Distributors, DropShippers
Toys/Video Games DropShippers, Wholesalers
Video DVD  DropShippers, Wholesalers
Health and Beauty Distributors, DropShippers
Consumer Electronics DropShippers
Music Distributors, DropShippers, Wholesalers
Jewelry Distributors, DropShippers, Wholesalers
Office Supply Distributors, DropShippers
Linens/Home Décor DropShippers, Wholesalers
Flowers Distributors, DropShippers, Wholesalers
Sporting Goods Distributors, DropShippers
Footwear, Shoes Distributors, DropShippers
Small Appliances DropShippers, Wholesalers
Tools and Garden DropShippers, Wholesalers
Gifts Distributors, DropShippers, Wholesalers
How to Find More DropShippers, Wholesalers
How to Open Your Online Store
How to Build Your Own Online Store
How to Build Effective Product WebPages
Building Your eStore with Website Templates
Designing, Planning and Organizing Your eStore
Implementing Graphic Elements
How to Create Your Own Company Logo
Create Search Engine Optimized Product Pages
How to Create a Content Rich Website
Choosing Your Web Host Provider
Create a Search Engine Optimized Domain Name
Check for Domain Name Availability
Top Web Building Software Programs
Top 10 Web Host Providers
Top 10 Complete eCommerce Solutions
Top Website Developers
All About Shopping Carts
All About Payment Processing
All About Merchant Accounts
Using PayPal as a Payment Processing Solution
More Merchant Account Providers
All Merchant Account Providers
Setting Your Prices
Setting Shipping Charges
Maintaining Your Online Store
Your Internet Marketing Master Plan
All about Search Engines
The Top Search Engines
Search Engine Optimization Guide Pt.1
Search Engine Optimization Guide Pt.2
All about Building and Exchanging Links
Purchasing Text Link Ads
All about Press Release Marketing
All about Pay-Per-Click Marketing
All about Discussion Forum Marketing
All about Article Marketing
All about Email Marketing
All about Banner Advertising
How Offering Free Shipping Can Boost Sales
All about 800 Toll Free Numbers
How to Beat the Competition
How to Run an Online Store Business
Dealing with Customers
How to Minimize Interaction with Customers
How to Deal with Customers via Email
How to Take and Place Orders
Paying for Products with Your Customers’ Money
How to Collect Sales Tax for Internet Sales
Avoiding Credit Card Fraud
How to Ship International and Overseas
How You Get Paid Each and Every Day
Dealing with Product Returns and Exchanges
Sample Return Policy and Procedures
Sample Privacy Policy
Sample Terms and Conditions Policy
Internet Business Resources
  Copyright © Online Store Business Course All Rights Reserved