I am a huge fan of online businesses. But let me clarify that, I mean online businesses DONE RIGHT.
“Done right” means you have a sustainable profit, year after year, and any class you take or mentor/coach/consultant you hire knows what the heck he’s talking about.
Plus of course, there has to be a ROI (return on investment) for the fees you pay for the class. If you spend $3K on an ecommerce business course, you better be able to make $3K profit over a reasonable period of time.
Provided you do the work of course.
Oh, and one more thing, your business has to be legal. You sure don’t want to spend the time and energy to start a business and end up in legal and tax problems.
Get the right advisors.
That leads to a question that I recently received regarding sales tax. It’s an important aspect to building any business, but especially an online one.
That’s because the info that is “general knowledge” is often wrong.
Make sure you’re considering the legal and tax aspects to your business as you build it.
The 3 Reasons You Need a Sustainable Digital Empire
There are 3 reasons I started the course “Sustainable Digital Empires”.
1.Online businesses work and I have way more experience than most of the so-called “gurus” in what REALLY works and what does not.
2.Most courses are just too darn expensive. You shouldn’t pay more than $1K for a course to get started.
3.It’s never been more important to take control of your financial future. We’re at the precipice right now.
Some will prosper. Some will fall. Where will you be?
And one more thing to consider.
Every Business Needs Three Parts
You need to have three parts to a successful business:
Sales & Marketing
If you leave any one of those out, you’re going to have big time trouble.
You need all three.
So today, I want to warn you about a growing issue for ecommerce businesses. You can’t ignore it.
The State Tax Threat to Your Online Business
In 2018, there was a US Supreme Court case called Wayfair. In this case, it allowed a state (SD) to force an online seller to collect and pay sales tax for products sold in the state. Wayfair sued SD because they had no physical presence there. It was just drop shipping.
The SCOTUS determined that the state COULD do that and we’ve now had most states jump on the band wagon. However, there are thresholds that are generally either 10,000 units or $100,000 sold in a year. So, if the drop shipper sells over that threshold in a state, say TX, then they have to collect and pay TX sales tax. If you’re the “middle man” on the deal, then the drop shipper is asking whether you’re going to be responsible for collecting and paying or whether they need to do it.
If you get the sales & use permit for each state, then you’ll be responsible for collecting the money. Otherwise, the drop shipper will do it and charge you.
If you sell just through a market place like Amazon, you’ll find most of them are taking care of the collection and payment.
It’s one more hassle or expense (if you get the done for you software) for business owners. Unfortunately, my belief is that the states are going to get a lot more aggressive with this since their expenses are way up and revenue way down due to coronavirus.
Don’t miss this article! The Hot New Tax Break Is An Online Business.