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… i live in California.
i’m only sixteen, but my mom helps me run the business.
we sell handcrafted jewelry, skirts, and totebags that we handcraft at home.
do i legally have to charge taxes?
what happens if i dont?
im planning to take orders through paypal
thanks.
Yes you’re legally required to get a sales tax license from CA, collect the tax and remit it to CA.
If you don’t, when you get caught, you’ll have to pay the sales tax out of your own pocket that you should have collected, plus interest and penalties. Don’t go there.
if you are paying taxes then you should charge taxes..
You were supposed to be collecting sales tax.
When caught (not if, but when) you will owe the tax ANYWAY.
you should get a state sales tax license (state has a website) and the info that comes along with it will tell you what to do
normally you should only have to charge sales tax on shipments to people IN California – you don’t charge it on shipment outside your state = those would be "exempt" sales on your sales tax returns and make sure you don’t spend any of that sales tax money – put it aside – you will have to send it into the state every month or quarter
the types of goods you are selling are most likely taxable within California
you can’t legally charge sales tax if you are not registered with the State Board of EQualization in Calif