How do on-line sellers handle charging taxes?

Question

I would like to start a on-line store with just a few items but I don't know how to deal with taxes. Has anyone heard of Silkfair? I would like to start with them. Thanks

Answer 1

You will have to get a sales tax ID from your state (if your state charges a sales tax).  You are only required to collect taxes in the state where your business has physical operations, if you're online most likely just the state where you live.

Answer 2

Too add to Judy's answer:  unless you actively solicit sales in that state.  Having a web presence is not actively soliciting sales.

Answer 3

You'd have to get a tax id from your state assuming your state has a sales tax.  Then if you sell to anyone in your state you'd collect tax from them.  For out of state buyers you wouldn't charge tax.