Internet business laws

Xcalabers · #1 (**permalink**) 02-07-2004, 11:45 AM

Does anyone have any information on internet business law? I want to make sure I don't have any problems after I launch my site. Taxes are one of my main concerns. What countries taxes do I need to pay? Also do I need to get a business license?

Thanks you in advance.

SyrenSong · #2 (**permalink**) 02-12-2004, 10:37 PM

GigaLaw can give you some good information on laws in the U.S., as well as some info on International law, though I'm not sure how comprehensive the international law is.

As far as U.S. taxes are concerned, though, it seems to be a state-by-state thing, and no one's found a way to nationalize or globalize it yet, though the politicians keep working on it.

I'm sure you need to pay local taxes wherever you're located. And income taxes are pretty much required everywhere in the world.

HTH!

Don Lee · #3 (**permalink**) 02-14-2004, 02:09 AM

I've been a practicing law for 13 years before I got into web developement. Eventhough I was never a tax attorney, here's few that I can share with you. Having a business on Internet is no different from having a brick and mortar store. You pay taxes on you sales or income just like everyone else. However, only difference is that purchases made through the internet are often free of sales taxes. The only time you pay sales tax is when the company you are buying from has an actual offline storefront in the same state as you. Many states require businesses to pay monthly sales tax collected. So if you do collect sales tax, you must file with your state agency.

I don't know what business you are in, but I don't see why you should worry about paying taxes to other countries. First, if you are buying from a vendor of Country A, any taxes due from you are responsiblity of that Vendor to collect from you at the time of sale or delivery. If you are the vendor, vice versa. Moreover, if you do end up paying whatever taxes to a foreign country, US Tax law provides for reciprocity so that you will receive a credit for that amount paid when you file your taxes here so that there's no double payment.

Finally, every local municipality has different requirement for business license. Usually service or consulting business do not require a local business license per se, but just State business tax and FEIN. Whether you are running a home based business or have an office, if you are running a business in that local municipality, you must apply for a license. Just to open a business bank account will require that you do anyway.

Don Lee · #4 (**permalink**) 02-14-2004, 02:10 AM

I've been a practicing law for 13 years before I got into web developement. Eventhough I was never a tax attorney, here's few that I can share with you. Having a business on Internet is no different from having a brick and mortar store. You pay taxes on you sales or income just like everyone else. However, only difference is that purchases made through the internet are often free of sales taxes. The only time you pay sales tax is when the company you are buying from has an actual offline storefront in the same state as you. Many states require businesses to pay monthly sales tax collected. So if you do collect sales tax, you must file with your state agency.

I don't know what business you are in, but I don't see why you should worry about paying taxes to other countries. First, if you are buying from a vendor of Country A, any taxes due from you are responsiblity of that Vendor to collect from you at the time of sale or delivery. If you are the vendor, vice versa. Moreover, if you do end up paying whatever taxes to a foreign country, US Tax law provides for reciprocity so that you will receive a credit for that amount paid when you file your taxes here so that there's no double payment.

Finally, every local municipality has different requirement for business license. Usually service or consulting business do not require a local business license per se, but just State business tax and FEIN. Whether you are running a home based business or have an office, if you are running a business in that local municipality, you must apply for a license. Just to open a business bank account will require that you do anyway.

pete61uk · #5 (**permalink**) 02-14-2004, 05:40 AM

Simply put, it depends on your location. For example, in the UK there are two agencies you need to be aware of, 1) The Inland Revenue (IR), and 2) Customs and Excise (C&E).:

Any customer-purchase is subject to value-added-tax (vat) @17.5% (IR).

If the customer-order is to be exported the purchaser is responsible for any importation tax at their country of origin/receipt and, depending on where it is, additional tax at your location (C&E)?

Goods, if imported (by you) for stock, are liable to your countries importation tax (C&E), the rate of which varies according to the import category it comes under. If importing goods in significant quantities there are two ways to go:

1) Either you declare the importation and goods category/value and have you will be billed accordingly. Or,
2) Chance it, the order will probably be scanned/opened and categorised anyway, C&E will either let it through un-charged (if small enough), or bill you prior to forwarding?

The best places to look are Inland Revenue and Customs and Excise. Also, local Chamers of Commerce are a good source of information.

I hope this helps?

TrafficProducer · #6 (**permalink**) 02-16-2004, 04:48 AM

Business Support
This site has some good links
http://www.bosslinks.com/