Re: Business Questions

Hey, Blue!  ;-)

At 04:03 PM 4/7/03, Blue Tapp was curious and pondered:
>Hello All ~
>I have a friend who is wanting to start up an online business selling retail
>merchandise from wholesellers.  He sent me this list of questions and I
>thought I'd send it on to all of you since I am not an expert in this area.
>Any advice is appreciated.

Let's see what we have here....

>"How is something like sales tax handled from a web site?

Their accountant would be best to answer that based on any state/local laws 
on the books.  Minimally to be safe, collect sales tax for orders within 
the state he is located.

>Do you charge the
>sales tax of the area the web site is based, or do you charge tax according
>to the location of the customer?

Location of the customer to start - those located where he is, more if his 
accountant is aware of laws on the books to determine further collections 
are necessary by law.

>How in fact do you determine where to get
>a license?

Check with the village/city/county halls to check for their requirements - 
this differs by location.

>Do you get one from the local govt where you live, or where the
>web host is located?

Where your formal place of business is legal established.

>"As you can see, I am completely new to this, but I want to do it right to
>avoid problems in the long run.  I can get a web site up, but the legal
>questions are the tricky ones.

That is why it is always best - and well worth the coinage - to have an 
attorney who understands the nuances of the online arena and the 
ramifications those decisions can make in your business.  No doubt, our 
list legal beagles will pop up with their thoughts.  If your friend would 
like a recommendation, contact me off list.  ;-)

>"BTW, what do you think of PayPal?"

PayPal is a great alternative for personal stuff or eBay.  However, since 
the online gig is all about perception - to give the perception of 
credibility and legitimacy PayPal should not be the only venue of 
payment.  I recommend all clients get a formal merchants account as this 
lends to being perceived as an established business that plans on being 
around awhile.

Lots-o-good info for him in the Business List FAQ too!

http://www.hwg.org/lists/hwg-business/faq.html

HTH!
/j 

HTML: hwg-business mailing list archives, maintained by Webmasters @ IWA