Consumption and Real Estate
Does “living” under address mean “conducting business” there?
Question : Does “living” under address mean “conducting business” there?
Does residing under a particular address, say in the state of Florida, and conducting your business on the Internet mean that you conduct the business in the state where you live? For example, if one has an online business which sells to the Internet audience, which state does he or she pay taxes to?
Going further, if the business owner establishes a virtual office in another state, do he/she pay taxes where the virtual office is or where the actual physical person lives?
Thanks.
virtual office florida
Best answer:
Answer by v b
The taxing authorities are going to go first for physical presence, second to where the servers are.
Establishing a virtual office in Florida will not prevent California from taxing you if that’s where you live.
both states will tax you.
Businesses in Florida are taxable no matter what the form of organization. If you live here in Florida and do business from here — state business taxes and sales tax to FL consumers both apply, even if the business is done over the Internet and/or to foreign countries.
Further, if you have a business ‘nexus’ in another state, you are required to collect sales taxes for that state on all sales to customers there. Plus, they’ll want to tax your business’ profits on the volume it does in that state.