Shopping Online and Saving Sales Tax by Ordering From Other States

Shopping Online and Saving Sales Tax by Ordering From Online Stores Shipping From Other States

Shopping from physical stores has one big disadvantage, and that comes in the form of sales taxes. In USA, different states have different laws and regulations regarding the sales tax and there is basically no way that you can avoid that while buying from the market and stores. Now, here comes the advantage of shopping online.

Many of these online sites not only offer you products with heavy discounts, but also spare you from paying the sales tax. For shoppers, this comes as great news, but the states face some loss against that. Now, for that, most of states have started to collect sales tax for online shopping from some of the biggest brands in that sector.

Now, here in this article, we will look at some of the most important aspects of buying online and saving sales tax.

Sales tax for online shopping depends mainly on the buyer’s location. So, it depends on the state you are ordering from. To avoid the sales tax, you should check which states offer no sales tax while buying online and should order from there only.

Mainly sellers collect sales tax in states where they have physical stores. That’s why if you are buying from Wal-Mart online, they will charge you of the sales tax irrespective of your state as they have physical stores in each and every state of the country.

The most important thing that you should keep in mind is the fact that the laws regarding sales tax are under constant scrutiny and are changed frequently. So, for saving sales tax, you should keep track of all those changing laws as well.

online sales tax saving money

Now, for online shoppers, here we are articulating some advices to save big in the retail price as well as in sales tax:

Always know the tax rates of your locality and of your domicile state.

Look for online stores who provide free shipping while delivering your goods.

If they are imposing shipping charges, try to opt for in-store pickup where you can.

If they are providing any limit for paid shipping, ask your family members and friends to go for group shopping to avoid the extra shipping charges.

And always check while checking out with the payment portal whether they are including any other hidden fees or not.

Sometimes, the states give leverage to smaller and newer online retailers regarding sales tax. So, check the prices of your product on different sites, and if you can find a local or a new online shopping portal providing the product in the cost range as the big players, you should opt for those retailers.

Apart from these, if you are a resident of Alaska, Oregon, New Hampshire, Montana or Delaware, then you are among the luckiest residents of USA who are not required to pay for sales tax while shopping.

These 5 states have lenient rules regarding collecting sales tax, offering you a chance for better saving. So, take care in mind the points discussed here and start shopping for your favorite products without caring about the sales tax anymore.

Benefits of Forming a Business LLC and EIN Number

If you decide on an online home based type of business, you need to adhere to some regulations that pertain such an enterprise. One of the first things you may need is an Employer Identification Number (EIN).

In addition, you need to register the business by filing in a complete form called FBN (Fictitious Business Name) or the DBA (Doing Business As).

This is basically determined by the state where the company is being established, essentially where you need to apply for the essential licenses and permits as may be required.

Though the whole process can be very expensive and in need of legal advice, you will find that there are many benefits of incorporating your business, whether it is for a small business or large corporation. Below is a guide to help you in forming a business LLC and EIN Number so you can make bulk orders:

Apply for an EIN

You will need to apply for an Employer Identification Number (EIN) to identify your business. By researching online, you can receive an EIN for free. There are different forms for different types of businesses, but the forms are simple and easy to fill out. The purpose of the EIN is for IRS to identify your business for tax and business purposes. Also check out Tax ID Number Online.

Turning your business to LLC 

Individuals that are filing by themselves would be considered a Sole Proprietorship. With a Sole Proprietorship, you are liable for any lawsuit that happens to your company and will affect you personally.

However, if you have a partner or a board than one of the options would be Small Business or Limited Liability Company (LLC). As an LLC, whatever happens to your business will not affect your personal assets. Each state has different business laws so make sure you do your research on which form is best for your business..

The process of incorporating a business

There are many websites and companies online that will help you out in filing your company. Always get legal advice when it comes to your business. LegalZoom is a very easy and simple way to incorporate. They will help you step by step on filling out the forms and also give you advise on which form is better for your business.

LegalZoom offers payment plans too. And you can check your status online as the paperwork is stamped and shipped. You will receive a portfolio with your company stamp, member forms, a CD with business forms and much more. Do your research to make sure this is right for your business.

EIN Number Online

Benefits of LLC and EIN Number

If you incorporate your business, you have many taxes and small business deductions. Even if it’s a family business, you can split the income and keep it within the family.

Some companies such as Filing.Solutions offer an LLC and EIN State and Federal filing package online Click Here

Many people prefer to work with companies that are incorporated because it shows that the company is stable. Suppliers will be willing to allow you to make bulk orders while more traffic of customers will be able to purchase from you, which brings an increase in your business.

International Customers

International customers may be required to obtain an Individual Taxpayer Identification Number (ITIN) in some cases if they wish to buy and sell bulk order goods within the United States of America.

We suggest hiring IRS approved Certifying Acceptance Agents (CAA) online to assist with your ITIN application as they make the entire W-7 Form processing process online and very easy.

Though it can be costly and it may seem that there is much more paperwork than expected, but, in the long run, you will find that incorporating your business will bring you an increase in clients and also the satisfaction of having your company grow.