Off topic: Taxes/Legal

[Luxoria]

First, if anyone knows a good resource/forums for asking questions relating to taxes and legal obligations for running an ecommerce business I would be grateful.

Basically, before I spend the money to talk to an attorney I want to have as much info as I can have ready so I have a few questions for you all here if you have the time.

What business form did you decide to go with? (Sole, LCC, S-Corp, etc) Did you file in Delaware or home state?

If you collect sales tax do you file monthly and pay Use/Sales Tax form to the state you are in?

If you are running the store from home what major steps do you take to isolate your business activities from your personal activities? (for liability purposes) Does the business pay rent to yourself or to the property owner? (example living with parents)

What kind of insurance do you have? Liability? etc.

Do you pay for a tax attorney or do you file taxes yourself? Did you talk to a tax attorney at least at the beginning to make sure you are on the right track?

I know it all depends on the a few factors such as business size, seriousness, if there is brick/mortar counterpart, etc. But, if you have any advice I would be appreciative, thanks.

[HRoth]

There's a book published by Nolo called "Deduct It" that I use. It's for small businesses. There's also "Small Business Taxes" by Barbara Weltman. I do my taxes myself and have never gone to a tax attorney about it because frankly, I am very pig-headed and cheap. I looked into incorporating but didn't see any real point in it in my situation. I don't have liability insurance because the public doesn't come to my home--it's all online--and I don't have any assets to speak of. But I also don't do anything legally stupid in terms of what I sell or how I sell it--I researched that into the ground before I started selling certain things in my niche. I'm still a sole proprietorship. I do deduct a portion of my rent and utilities and all that for the business. I use half my house for the business and half for me. You don't need to incorporate to do that kind of deduction. If you are getting all of your income from your business, the IRS does not question home office deductions in my experience. It's a separate form you fill out when you do your taxes. I have never gone to see a tax attorney about it.

One thing nice is if you are paying estimated taxes, you can do it even weekly if you want online. It is much easier than paying them in big chunks each quarter. The IRS site tells you how to sign up.

[LifeinAsia]

For tax-related issues, you should be speaking to a tax preparer, EA, or CPA- not an attorney.

In regards to your questions, you may get a lot of different answers because different situations require different variations, and none of them may apply to your case. Also, some people may be reluctant to answer some of those questions in a public forum.

C-corp in Delaware and as a "foreign" corp in home state. But your situation is most likely very different from ours.

We don't collect sales taxes. Most states require you collect it for purchases by residents from your own state. Filing requirements may vary by locale.

I do taxes myself and have an EA review before filing. I was also an EA, but let my license lapse. IT work is (usually) MUCH more fun than taxes! :)