Sales Taxes question

M

MrWetface

New member
I'm new here, and I've been reading a lot of posts here lately. I've made beats as a hobby for quite a few years now, getting better and better, recently I've been reading a lot of pdf tutorials and watching a lot of tutorial videos learning how to mix and master. I want to start selling my beats soon, although I'm not quite ready. I want to sell them online, and I've learned a lot about how to go about that but there's one thing I can't seem to find the answer to. Do I need to charge sales tax? And if I do, how do I charge sales taxes to residents in other states, even other countries? I already signed up for a sole proprietorship business license. I don't plan on selling any beats for at least a few months, I still need to get my beats a little tighter.
 
Im in the same bucket man, honestly this site is the worst when it comes for advice or help on selling beats, etc. I dont think you are supposed to charge sales tax, ive never really heard of that. You said you already signed up for a sole proprietorship business license? how did you do that? are you talking about a LCC? I have some questions about this same topic hopefully we can answer eachother
 
A sole proprietorship is different then an LLC. I went down to Dallas and registered the name I wanted to use. A sole proprietorship is an unincorporated business with one owner who pays personal income tax on profits from the business. With little government regulation, they are the simplest business to set up or take apart, making them popular among individual self contractors or business owners. An LLC is a limited liability company. If you get sued and your business is a sole proprietorship, they can go after your personal assets. I make most of my beats from scratch. I DO sample here and there but they are mostly beats that I or one of my friends will rap over. Any beats I sell will be completely original with no samples unless it's a sample I create. There's not really a lot online, that I have found anyways about whether or not to charge sales taxes or not. I'm not sure of all the main differences between sole proprietors and LLCS, I tried to paste a link but it said I have to have at least 5 posts to post a link. If someone tries to sue you and you have an LLC they can only try to take from your business, not your personal assets. Since all my beats that I will be selling are all made completely by me I am not worried about being sued.
 
The answer to the sales tax question is dependent on which state (in the US) you live in. You charge international and domestic customers the same, _if_ there is a sales tax involved. It depends on whether your business is considered something that renders a "product," or a "service" (usually not taxable), and again, which state you are in (for example-- New York, yes; Oregon, no). You may have county sales tax as well...

I am not an attorney or a sales tax expert; pursue legal advice from a competent expert and/or local authorities.

GJ
 
Upon further research I looked up whether or not digital sales involving music goes, I was able to find out that digital music is considered tangible property in the state of Texas (where I am) and you are supposed to have a sales tax permit and tax everyone in Texas. It sounds like you don't have to charge people from other states sales tax, but I am still looking into that. Thanks GJ
 
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