I run an online only (no physical presence) sole proprietorship small business. I run the business through an online store by myself and generate income from online sales only. My sales are approximately $70,000 - $110,000 a year. Do I need to collect sales taxes? If so, do I only have to collect them from sales in the state or both sales in and out of the state?

ANSWER

The BIDaWIZ Team's Answer:

You would definitely collect sales tax for any customers that are based in California. If you have other customers purchasing out of state, the only potential tax would be is a use-tax, which is generally the responsibility of the purchaser since you don't have nexus (i.e. physical presence) in those states. Sometimes sellers collect the tax for the purchaser as a convenience to the customer.