I was wondering what kind of federal taxes are involved when you are a reseller?

Thanks.

Hi,
Reselling web services is just like any other business, the government will want their fair share.
My advice is to sit down for a consultation with a decent accountant. It will be time well spent!

Good Luck!

The kind you have to pay ;)

There may be state/provincial taxes as well..... it will depend on where (country/state) you are located, and the rules for that area.

Take Whitaker's advice and get an accountant. If you start off down the wrong path and are not collecting/remitting taxes correctly, it could (will likely) turn into a costly mistake. And it's best to start off doing things right because changing them later would be a real pain.

Rob M.

I was already planning on talking to an accountant about the whole thing. I was just trying to get a general idea from the people out there already hosting.

Thanks,

You have the same tax issues as with any other business, depending on your business form, sole proprietor, partnership or corporation. There are places to find out the basic advantages of each form, and you will probably need an accountant and at least a lawyer to consult with.

Basically, you pay taxes on your income like anyone else. Figuring out what the income is is the tricky part for a business.

If you meant "what taxes does a webost IN PARTICULAR have to deal with, the only particular thing I can think of is sales tax, which you MAY have to charge to customers in your state (but in general, not out-of-state). But I think most states waive that requirement so as not to hurt businesses in their state.

You need to find out the rules in your particular state, province or country. I'm in New York. We don't have to charge sales tax on internet services. When we BUY a computer or peripherals used predominantly in hosting or software development, we don't PAY sales tax (to like Dell or CompUSA) but if we bought the exact same coputer to do office work or play video games we would.

Knowing this stuff is how accountants make a living.