Online businesses entered a modern-day renaissance due to the COVID pandemic and have since maintained their popularity with the ever-increasing property price, commercial interest rates, and ongoing health concerns. For those interested in operating their own online business, it’s important to note there are nuances to consider when running an online business as opposed to a traditional brick-and-mortar business. Sales Tax If you’re starting an online business, chances are you’re selling a good or product, probably in multiple areas. If this applies to you, you should ensure that you collect the appropriate sales taxes when selling any product. It’s up to you to collect and report sales tax payments. Failure to have accurate records may result in penalties and skewed revenue figures and projections. However, you usually need a sales tax license to collect sales tax. Use online sales tax calculators to estimate how much you should collect. Be mindful that you are generally r
University of Michigan Law School Community Enterprise Clinic (CEC) Blog