QUESTION
If I don't sell to customers in my state, can I avoid collecting sales tax and won't need a business license?
Asked on Mar 29th, 2014 on Taxation - Michigan
More details to this question:
I'm starting an online business and want to avoid dealing with collecting sales tax. I plan to sell to almost everywhere else in the world EXCEPT my state. I also would like to avoid getting a business license until I know the company is feasible. If I don't need to collect sales tax, does that mean I can run my small business (no employees and will claim all profit as personal income with the IRS) without obtaining a business license?
1 ANSWER
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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To some degree you are putting the cart before the horse, you should do all things which are necessary in order to properly set up a limited liability entity before you commence doing business in order to minimize the personal risk should something go wrong. I would suggest you buy an hour or so with a business attorney to determine how to best undertake your fledgling enterprise. Generally, nothing works unless it is done right the first time and corrections are more expensive than proper preparation.
Answered on Apr 09th, 2014 at 8:05 PM