If a sole proprietor with an online business has an EIN, is he or she responsible for paying quarterly taxes and/or the 15.3% self employment tax rate even when they have generated no profit at all or a very low profit (ex. <400 dollars)?.
self -employment taxes arise when self-employment net income from all sources exceeds $400. we don't know if you have other sources of income or have other situations that would require you to make estimated tax payments.
If the online platform where customers place orders collects and remits the sales tax, does this excuse the seller from needing to obtain a sales tax permit? This is a sales tax question which generally this forum cannot provide an answer. contact your state's sales tax division.
If the online business platform I am using collects and remits sales tax in my state from customers’ orders, is it still necessary to register with the tax center in my state? same as above
Should a sole proprietor obtain a business bank account with an EIN? it would be best is all business income went into the account and all business expenses are paid through the account. If you are audited this may simplify it but the auditor can ask require you to produce personal bank account information.
How would business property tax be handled for an online business with a non-residential business address?
if no personal business is conducted from an outside location it should be deductinle
BEST ADVICE. SEE A TAX PRO WHEN SETTING UP THE BUSINESS. THERE ARE MANY THINGS TO CONSIDER INCUDING TYPE OF TAX ENTITY. GOOD BOOKKEEPING IS IMPORTANT. MESS UP AND THEN IF AN IRS OR STATE AUDIT IS CONDUCTED IT MAY BE TOO LATE TO DO ANYTHING SO YOU COULD FIND YOURSELF WITH A BIG TAX BILL.
