Today’s Basic Training question can be answered simply with a Sarah Palin-esque answer: “You betcha!”
Q: Are you required to add state taxes to online business?
A: Even though online businesses don’t have the same physical “presence” as their bricks-and-mortar counterparts, they are still required to charge sales tax (and remit it to the local authorities) on all sales within their state. Generally, you’re not required to charge sales tax for sales made to out-of-state residents. But all that can change in a heartbeat, especially in a tough economy where legislatures are looking for ways to fill the public treasury (in other words, raise taxes). Because the rules and the tax rates can change, make sure to stay in touch with your accountant to get set up properly and stay apprised of new developments.