Legal Question in Tax Law in California

Does a software company that provides a service have to charge sales tax just because it does sell to the customer a license to the software initially to start service? The company does business all over the U.S., but has it's office in California.


Asked on 3/19/10, 4:12 pm

1 Answer from Attorneys
Ronald Cappuccio Ronald J. Cappuccio, J.D., LL.M.(Tax)

Each state has different sales and use tax laws. I suggest you consider locating the business in a state that does not collect sales tax (such as Delaware.) Then, sales will be out of state sales.

Unfortunately, many states are attacking online sales and trying to tax them You should talk to a tax attorney right away.

I hope this helps!

Ron Cappuccio

www,TaxEsq.com

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Answered on 3/27/10, 8:17 pm


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