moving retail business from one state to another

what should I do?

[newestdeal]

Hi,

I'm current located in michigan and registered my online retail business in michigan. so right now, i'm only collecting the sale tax for michigan customers.
But I need to move to another state soon, so then my questions is

1. after I move to the new state, do I need apply the sellers permit in the new state again?
2. how about the old state, do I need to do anything to dissolve the business in the old state?
3. and I only need collect sale tax from the customer in new state,but not the old state. right?

thanks a lot, you guys are so great!

[Dogza]

1) Yes, you'll need to apply for a new business license in Michigan.

2) I think that depends on the state. When we moved from Delaware it took us almost 2 years to disolve the old business. Paperwork kept getting "lost".

3) You'll need to collect tax in the old state until the state knows you've moved. Then you'll still need to file tax returns with the old state at the end of the year.

You should contact SCORE and ask for an accountant from your current (old) state and get advise.

[newestdeal]

Dogza, thanks a lot!

Another question,
after I move if I donot dissolve the company in the old state, do I need pay the income tax for my profit to both states? if so, my tax is double then!

thansk

[Dogza]

No, you won't have to pay tax twice. You will need to file a tax return every year though, you'll just be filing Zero. That is a real pain-in-the-bu!, I would really recommend dissolving the old business.

Talk with an accountant though...