Question I am in the process of starting an online business. I currently live in California but I move very often due to my line of work. I would like to start an LLC in the state of Delaware. My question is if my online business is "based" in Delaware but I pay income tax in another state like California will this present challenges for me come tax time? In addition because I would not have to charge sales tax for the products I sale online if im based in DE does that mean that my company will pay more taxes come tax time(I also plan to sell products internationally)? Lastly because DE does not have a sales tax will I still need to get a Sales Tax ID # or something equivalent?
I have searched and read many articles and books but cant seem to find these answers. If you can answer this for me it would be GREATLY APPRECIATED!! Thanks."
Answer You have to collect and pay sales tax in the state that you are operating in. You have to register as a foreign company in the state you are operating in and get a state tax ID.
I am not an accountant or attorney. Please do not take the above opinion based on my personal experience as legal advice. You should always contact an accountant or attorney to make sure that your are fully protected under the law.
