What business type for selling online..

Walley · Aug 19th, 2008, 02:26 AM

If I were to sell items on ebaydotcom and small bulks on liquidationdotcom... will I still be consider a retailer? Or... will me selling on liquidation categorize my business as a distributer?

Any tax advantage of one over the other?

Will I be able to easily change the business type? Or does it matter?

Thanks.

Walley · Aug 19th, 2008, 11:12 AM

I just realize I accidently put this in the wrong section. Sorry.

PhxMJ · Aug 21st, 2008, 11:06 AM

Depends on your customer. If you sell to a wholesaler, the transaction should be tax free to them and they should give you a TAX-ID # which makes them tax-exempt. Many web transactions are already tax exempt in most states.

I don't believe the entity type matters.

Aug 19th, 2008, 02:26 AM	#1 (permalink)
Walley Level: (11) Honda Joined: Oct 2007 Age: 24 Posts: 91 Thanks: 5 Thanked 0 Times in 0 Posts	What business type for selling online.. If I were to sell items on ebaydotcom and small bulks on liquidationdotcom... will I still be consider a retailer? Or... will me selling on liquidation categorize my business as a distributer? Any tax advantage of one over the other? Will I be able to easily change the business type? Or does it matter? Thanks.

Aug 19th, 2008, 11:12 AM	#2 (permalink)
Walley Level: (11) Honda Joined: Oct 2007 Age: 24 Posts: 91 Thanks: 5 Thanked 0 Times in 0 Posts	Re: What business type for selling online.. I just realize I accidently put this in the wrong section. Sorry.

Aug 21st, 2008, 11:06 AM	#3 (permalink)
PhxMJ Level: Vince from Shamwow Joined: Jul 2007 Locale: Phoenix, AZ Posts: 3,350 Thanks: 152 Thanked 258 Times in 137 Posts	Re: What business type for selling online.. Depends on your customer. If you sell to a wholesaler, the transaction should be tax free to them and they should give you a TAX-ID # which makes them tax-exempt. Many web transactions are already tax exempt in most states. I don't believe the entity type matters.

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