Starting a LLC...where

[davew128]

Perhaps you missed the part where I said:

You would not be required to collect Florida sales tax on sales made and shipped to other states where your company does not maintain a physical presence as davew mentioned above.

If he is in the state because of his transitory nature that would pretty much qualify as having a physical presence there. Try reading the whole post next time.

It doesn't matter WHY he is in the state. Business presence is business presence. Google nexus for sales tax and you will see WHY you're wrong. The exceptions for income tax nexus don't exist for sales tax nexus.

 

[tranquility]

It doesn't matter WHY he is in the state. Business presence is business presence. Google nexus for sales tax and you will see WHY you're wrong. The exceptions for income tax nexus don't exist for sales tax nexus.

I agree, from Quill:

In sum, although in our cases subsequent to Bellas Hess and concerning other types of taxes we have not adopted a similar bright line, physical presence requirement, our reasoning in those cases does not compel that we now reject the rule that Bellas Hess established in the area of sales and use taxes. To the contrary, the continuing value of a bright line rule in this area and the doctrine and principles of stare decisis indicate that the Bellas Hess rule remains good law. For these reasons, we disagree with the North Dakota Supreme Court's conclusion that the time has come to renounce the bright line test of Bellas Hess.

 

[katiekate32]

where do I do business?

I never realized how complicated all this really is turning out to be.

So..let me explain the whole mess, maybe it will help (maybe not)

My customers are at racetracks all over the country. However, none of these people stay at just one racetrack. Most of these customers are actually at multiple racetracks at the same time. Take the example of Bob Baffert...he has hundreds of horses at several race tracks at the same time totaling more than a thousand horses at any one point in time...plus he might have hundreds more moving from one training center to another ... all changing physical location with the racing seasons.

I may interact with one of these potential customers at a race track near Phoenix, AZ (for example) ...but, he would order through his LLC incorporated in Maryland ..for a delivery to Massachusetts. Thereafter, I might never see him again but instead get a phone call to send product to Virginia, Maryland, and NY. I am pretty sure I will never know what State the customer is incorporated in.

My presence in Phoenix might just be because I am visiting friends and it is easy to interact while taking my friend to the track for the day. (not necessarily Phoenix...just an example..could be New Orleans one time and Saratoga Springs the next...so don't figure I am doing business in Phoenix or any other fixed location)

This will be a very common process. However, like I said..I might be shipping to multiple locations across the country but to the same customer.

My only interaction with a customer might be only through a friend who talked with a prospect and prospect wants to try it...then, I send a sample..followup would be just by phone conversation.

My only real need is to have a single place to be incorporated, and a warehouse to handle shipping.
Of course the major issue is taxes. I don't want to be buried in paperwork for every sale.

 

[davew128]

Then you shouldn't be in business.

 

[katiekate32]

why did you bother?

Then you shouldn't be in business.

Do you get bonus points for being unhelpful?

Why bother if you aren't getting some physical or emotional reward for posting stuff like that?

 

[BigMouthWino]

I never realized how complicated all this really is turning out to be.

So..let me explain the whole mess, maybe it will help (maybe not)

My customers are at racetracks all over the country. However, none of these people stay at just one racetrack. Most of these customers are actually at multiple racetracks at the same time. Take the example of Bob Baffert...he has hundreds of horses at several race tracks at the same time totaling more than a thousand horses at any one point in time...plus he might have hundreds more moving from one training center to another ... all changing physical location with the racing seasons.

I may interact with one of these potential customers at a race track near Phoenix, AZ (for example) ...but, he would order through his LLC incorporated in Maryland ..for a delivery to Massachusetts. Thereafter, I might never see him again but instead get a phone call to send product to Virginia, Maryland, and NY. I am pretty sure I will never know what State the customer is incorporated in.

My presence in Phoenix might just be because I am visiting friends and it is easy to interact while taking my friend to the track for the day. (not necessarily Phoenix...just an example..could be New Orleans one time and Saratoga Springs the next...so don't figure I am doing business in Phoenix or any other fixed location)

This will be a very common process. However, like I said..I might be shipping to multiple locations across the country but to the same customer.

My only interaction with a customer might be only through a friend who talked with a prospect and prospect wants to try it...then, I send a sample..followup would be just by phone conversation.

My only real need is to have a single place to be incorporated, and a warehouse to handle shipping.
Of course the major issue is taxes. I don't want to be buried in paperwork for every sale.

Your safest route is any state in which you are present and make a sale during the year collect the sales tax and report it to the state. If you are a salesperson selling to a customer is Arizona for your corporation you need to collect and remit the appropriate tax for the sale to the state. If you haven't been to Virginia all year and you receive sales from Virginia by phone, mail or internet then it is your customer's responsibility to pay the sales tax.

 

[davew128]

Do you get bonus points for being unhelpful?

Why bother if you aren't getting some physical or emotional reward for posting stuff like that?

Point out where I am wrong. If you aren't willing to perform the requisite paperwork involved with owning the business AS REQUIRED BY LAW, no you should NOT be in business.

Sorry if your soiled undergarments got in a bunch because of the sober truth.

 

[LdiJ]

Do you get bonus points for being unhelpful?

Why bother if you aren't getting some physical or emotional reward for posting stuff like that?

He wasn't being unhelpful. The reality of business is that you are buried, to one degree or another, in paperwork. If you do not understand that, and are not prepared to deal with the paperwork, then you should not be in business for yourself. Its as simple as that.

I am a tax professional and one of the most frustrating parts of my practise is clients who do not grasp the need for proper paperwork. A ridiculous percentage of them mess themselves over completely because they don't take the time to do proper paperwork.

Now, as far as sales tax is concerned, that is still somewhat unregulated as far as the internet is concerned. Right now it still is determined by whether or not a state can prove that you have a physical presence in their state. So, if you do nothing more than put up a website and sell products, its likely that you cannot be forced to collect and remit sales taxes for anything other than your home state.

However is does appear that you have a physical presence in more than just your home state...so that makes it more complicated for you. Once again, if you want to be in business for yourself, understand the ramifications of that and deal with those ramifications accordingly.