When you open a business, you need to be aware of many state regulations and laws in order to avoid breaking them and incurring penalties. Running a retail business involves being familiar with several different types of taxes, including state sales and use taxes. To get help learning about your tax responsibilities, you should consider consulting with a state tax lawyer in NJ.
Business Tax Responsibilities
As a business owner, you have several types of taxes you need to pay or keep records for—including withholding federal and state taxes from employees’ pay, state sales and use taxes, withholding Social Security and Medicare taxes from employee wages, and accounting for income taxes for your business, depending on your company’s structure. To complicate matters, if you sell products over the Internet, you will also have to show records regarding those sales as well.
While an accountant can help you keep track of all the types of taxes your business is responsible for, a state tax lawyer can advise you about any taxes you may need to pay for your retail business. The responsibility for collecting taxes on Internet sales can be confusing because there are instances where your business has to collect taxes on sales to customers. In New Jersey, if you have a physical presence—such as a retail location or a warehouse—you could be responsible for collecting taxes.
Amazon Rule
In addition to a physical presence, if you make sales of $10,000 or more for four quarters in a row to customers in NJ, then you also have to collect sales taxes on Internet sales. State tax rules frequently change, so if you have questions or are confused about what to do, you need to consult a state tax lawyer.
