Online subscriptions

[nomad19088]

Do I have to pay sales tax on online subscription services?

[MaryK4]

If you mean for online services, some states treat SaaS similarly to prewritten software purchased and downloaded via the Internet, whereas others see this as a service, which may or may not be taxable. 

[nomad19088]

What states are exempt?

[KathrynG3]

Alaska, Delaware, Montana, New Hampshire, and Oregon do not have sales tax.

However, for the particular treatment of software for a service, I recommend contacting your state directly. 

See: How do I contact my state Department of Revenue?

[nomad19088]

What about Ohio?

[KathrynG3]

Ohio Revised Code Section 5739.01 effective March 27, 2020 states SaaS is taxable for business use in Ohio, but non-taxable for personal use. 

It is best to seek a local tax professional regarding sales tax to determine whether you have sales tax nexus, or a significant presence in the state.

For more information, see: Ohio Department of Taxation - Sales and Use - General Information.  

[nomad19088]

So an online purchase from Legalzoom does not apply?