[ISC]

Hi all. I want to start my line soon. I am planning to have a website and allow online ordering, however I will also sell at markets and from booths at different events.

The thing is, I live with my parents in one town. I go to school 150 miles South. I am going to be selling from booths and what not probably all over. I live at school most of the year, but am home for breaks (including summer).

When registering my business, should I use my house at school's address as my business address? As opposed to my parents' home..

Also, taken from the registration site:

Location information - Street address and telephone number (if applicable) of each location where you do business. A Post Office Box number is not acceptable. You will also need to identify each Illinois county in which you do business. Madison or St. Clair counties, require the township.
Note: This information will allow us to provide you preprinted tax return(s) with the appropriate tax rate(s) for each location.

Since I will mainly be selling online and at venues, but never directly out of my house, what address should I use for this? I'm guessing the same one as I put for my business address.. which would be my school one.

And I'm thinking it's safest to use a P.O. Box as my mailing address?

Thanks for the help guys. I wanted to register right now but am unsure of these couple things and want second opinions!

 

[IYFGraphics]

The thing is, I live with my parents in one town. I go to school 150 miles South. I am going to be selling from booths and what not probably all over. I live at school most of the year, but am home for breaks (including summer).

When registering my business, should I use my house at school's address as my business address? As opposed to my parents' home..

Also, taken from the registration site:

Location information - Street address and telephone number (if applicable) of each location where you do business. A Post Office Box number is not acceptable. You will also need to identify each Illinois county in which you do business. Madison or St. Clair counties, require the township.
Note: This information will allow us to provide you preprinted tax return(s) with the appropriate tax rate(s) for each location.

Since I will mainly be selling online and at venues, but never directly out of my house, what address should I use? I'm guessing the same one as I put for my business address.. which would be my school one.

And I'm thinking it's safest to use a P.O. Box as my mailing address?

I would use your parents address, (it states a PO box is not acceptable) problem is that the address is so the state can send you forms, letters, and info, if you plan to stay in business very long (over a year) you really need a address listed with them that is easy for them to contact you and easy for you to get your mail from them.....if you stay in business once your out of school you can change the address to where you'll be living...

....also your going to be required to collect sales tax on your sales (which you will be at venues or any in-state sale) you will need to send them money or a form stating no sales this period every month (or quarter), most states are very strict about their money you collect for them adding interest to the amount if your late paying them.

Hope this helps.

 

[ISC]

In regards to the address issue, I think you misunderstood me. I don't know what to use as my business address... not my mailing address which is separate from business address and CAN be a P.O. Box.

I am going to sell online, as well as all over the state likely. So I don't know if it really matters which address I use as my "Business Address" since I really will not be conducting business out of the place I live... other than managing website sales, that's really all that will be happening at my home/business address.

But for tax stuff, are you saying online sales don't require sales tax? Or is it all in-state sales including online sales require tax?

 

[IYFGraphics]

In regards to the address issue, I think you misunderstood me. I don't know what to use as my business address... not my mailing address which is separate from business address and CAN be a P.O. Box.

I am going to sell online, as well as all over the state likely. So I don't know if it really matters which address I use as my "Business Address" since I really will not be conducting business out of the place I live... other than managing website sales, that's really all that will be happening at my home/business address.

But for tax stuff, are you saying online sales don't require sales tax? Or is it all in-state sales including online sales require tax?

Normally all in-state sales (even on the internet) the state will require you to charge/collect/and submit to them sales tax you collect on your sales..technically every sale you make should require the buyer to pay sales tax to the state of Illinois on the goods they buy from you, regardless of how the transaction is handled, ie brick & mortar, fair/swap meet, internet.

It's just that most states can't police internet sales so it's kinda' on the honor system that you charge sales tax for in-state internet sales, report the sales and send them the appropriate tax collected.

You can go to your states department of revenue web site and probably learn all you want to know, and probably a few things you didn't want to know. LOL!

Hope this helps.

 

[binki]

The reason for a physical address is so you can be served if someone wants to sue you. This is published by the State.

As already stated, you collect or pay sales tax for all in state purchases regardless of the way the sale was made.

The reason internet or mail order sales are not required to collect out of state taxes is because you do not have an obligation to other states for collecting their tax if you do not have a physical presence there. The tax is still due and the buyer is required to pay it, but you don't have to collect it because you are not there and they can't touch you.

 

[splathead]

I would check the sales tax rate for both locations (parents home, and your home while in school) and see which tax rate is cheaper. That's the address I would use. We're only probably talking about a 1/4% rate difference or less, but still....

 

[ISC]

I would check the sales tax rate for both locations (parents home, and your home while in school) and see which tax rate is cheaper. That's the address I would use. We're only probably talking about a 1/4% rate difference or less, but still....

Very true, I didn't think of that. Thanks

Edit: Tax rates for merchandise is 7% in my home town, 7.75% in my school's town. But like I said, most my business will be done down around the area of my school. Would it be a bad idea to sell down at school and only charge 7% taxes?

 

[brice]

Check with the tax department for YOUR state. In my state taxes are charged based on where products are delivered. If I deliver the goods in a higher tax bracket location, the taxes collected are for that location.

 

[binki]

Check with the tax department for YOUR state. In my state taxes are charged based on where products are delivered. If I deliver the goods in a higher tax bracket location, the taxes collected are for that location.

California wants to do that too but the last few years they have offered smaller operations the option of just using their address for all sales.

 

[splathead]

California wants to do that too but the last few years they have offered smaller operations the option of just using their address for all sales.

One of the few smart things they have done.

When you think CA has thousands of cities, towns and counties, each potentially with their own sales tax percentage, you would need some pretty sophisticated (expensive) shopping cart software otherwise. I would think, (hope) most states do this too.

 

[ISC]

So I just talked to the department of revenue and it turns out in Illinois tax is collected based on where the product is sold. So I guess my business address does not matter for tax reasons. This makes it that much more complicated to do business.

 

[aldan]

Regardless of what you're facing paperwork-wise, just be happy you're not based out of Chicago -- 10.25% sales tax.

 

[ISC]

Regardless of what you're facing paperwork-wise, just be happy you're not based out of Chicago -- 10.25% sales tax.

You got me there. I read Chicago has the highest sales tax rate of any major city in the country!