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Hi all,
I'm new to the online T shirt biz; I'm struggling with tax-related issues when selling online, and after tons of research I still can't find a simple answer to understanding what i need to make my business legal. Hoping someone might provide a little clarity. Here are the deets:
I am based in North Carolina and I want to sell shirts online using Printify as my supplier. I intend to get a resale certificate from the state of North Carolina, which I will present to Printify, but after that it's all pretty vague.

Some info I've found suggests that I need a state-specific resale certificate for each state I sell to; but at this point I don't even know if I'll make a sale in each state. My interpretation of that, which may be wrong, is that I'd need to file with all 50 states if I were to do a nationwide advertising campaign. And then if I sell five shirts to customers in California, three shirts to customers in NY, and 2 shirts to customers in Florida, I'll need to file taxes in all of those states, while having wasted my time filing in the other 47 states where I didn't make any sales?

Since Printify serves as a drop shipper, it seems they will determine where the item is being shipped and thus how to charge tax, dependent on where I have tax nexus, but it all seems very vague.

Can anyone offer advice on how best to do this, or how you've set up your biz to sell across multiple states? Thanks in advance for any help!
 

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You don't need a certificate for every state. Only the one you're operating in (have a physical address, salespersons there, etc.).

But larger companies like Printify, Printful, Amazon, Ebay, Etsy, etc. collect sales tax in every state that requires it. So you'll need to adjust your selling price on your site to compensate for that.

Check this primer out by printful:
 

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Hi all,
I'm new to the online T shirt biz; I'm struggling with tax-related issues when selling online, and after tons of research I still can't find a simple answer to understanding what i need to make my business legal. Hoping someone might provide a little clarity. Here are the deets:
I am based in North Carolina and I want to sell shirts online using Printify as my supplier. I intend to get a resale certificate from the state of North Carolina, which I will present to Printify, but after that it's all pretty vague.

Some info I've found suggests that I need a state-specific resale certificate for each state I sell to; but at this point I don't even know if I'll make a sale in each state. My interpretation of that, which may be wrong, is that I'd need to file with all 50 states if I were to do a nationwide advertising campaign. And then if I sell five shirts to customers in California, three shirts to customers in NY, and 2 shirts to customers in Florida, I'll need to file taxes in all of those states, while having wasted my time filing in the other 47 states where I didn't make any sales?

Since Printify serves as a drop shipper, it seems they will determine where the item is being shipped and thus how to charge tax, dependent on where I have tax nexus, but it all seems very vague.

Can anyone offer advice on how best to do this, or how you've set up your biz to sell across multiple states? Thanks in advance for any help!
You only need a certificate for the state you are currently operating in.
 

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Yes you only need a certificate for the state you are physically located. I made the mistake registering for like 20 states... definitely not what you're supposed to do because you end up with a TON of paperwork. It's not ideal having to pay tax, but it is what it is.
 

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You guys rock. I'm facing the same dilemma, and my company is based in Canada, so I'm not sure if I should go with the tax laws there or in the US, where I reside. I'm also not sure where I can get a good tax accountant in Canada to deal with these kinds of cases! The only one that I have been trusting for a few weeks after a friend's recommendation is Tax Returns Toronto - Tax Preparation Canada | Tax by CPA as they saved a ton of money for a bar owner that had some huge losses due to the lockdowns imposed by Trudeau who thinks he can stop the virus with such actions.
 

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Nobody is going to bother you unless you start doing millions in bank. I wouldn't worry about it until then.
 

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You guys rock. I'm facing the same dilemma, and my company is based in Canada, so I'm not sure if I should go with the tax laws there or in the US, where I reside. I'm also not sure where I can get a good tax accountant in Canada to deal with these kinds of cases!
A lot will depend on where you are shipping from.
 

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Here in Florida there are 1,200 sales tax jurisdictions.
NYC even more. LA, too many to manage. And they all want their money. With billions lost in tax revenue due to COVID, these authorities will start turning over rocks to find money.

Nexus is also worth conversation. But rather that me rehashing, let me direct you to a solution and great source of information. Pay special attention to Nexus AND the thresholds that you should be aware of.
WWW.TAXJAR.com
You will need 3rd party verification, just like with mileage deductions to escape the traps that may be ahead.
 
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