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View Full Version : I'm a little confused. What exactly is "doing business"?



Monte
05-10-2021, 04:56 PM
Ok, here we go. If I start a single-member LLC here in Texas, where I live, and I sell products online, and someone in Nebraska, for instance, buys something from me, am I "doing business" in Nebraska, or did I just sell something in Nebraska?

I've got a few ideas for some small businesses (well, really, a "top-level" LLC as sort of the "main" business or functioning as a "holding company" with a couple of other DBA's "underneath" it, if that make sense). But most of them would have products or services sold online.

So in the LLC world, what exactly is "doing business"?

Sabre_Fin
05-12-2021, 05:12 PM
Unfortunately there is no simple answer when dealing with transactional taxes such as sales and use. Most states have their own set of rules on responsibility - some put the burden on the seller to ensure proper sales tax is collected and remitted, some states put it on the buyer and some states leave it undefined such that it can be both.

When it comes to remote selling there are some states that are conforming with the guidelines established by SSUTA (Streamlined Sales and Use Tax) which is to help simplify the process. However, at this time only about half the states have conformed to the program requirements. Home (streamlinedsalestax.org) (https://www.streamlinedsalestax.org/home)