Hey,

I'm looking for information regarding the LLC business structure and taxing.
I have a few questions about web hosting and design taxes.

I know that you generally don't tax people for web hosting, but what if they are in the same state as the registered LLC? Same thing goes for design...

I also would like information on what forms an LLC has to fill out.

Thanks in advance

Knowing what forms to fill out, one would need to know what state your business operates in, and what state you plan to form the LLC in.

New Jersey

But I'm also looking for federal information.

I can't find a site that gives general information on the legalities of running a web hosting business. ie paying employees, filing taxes, etc

New Jersey

But I'm also looking for federal information.

I can't find a site that gives general information on the legalities of running a web hosting business. ie paying employees, filing taxes, etc

Those are not specific to a hosting company. You can use general service oriented business types as an example.

Here's a few sites for some LLC information (I am not recommending the service of these sites, just as information resources):

http://www.mycorporation.com/llc/
http://smartmoney.bizfilings.com/

Those are not specific to a hosting company. You can use general service oriented business types as an example.
Thank you. So should a hosting company charge tax on hosting plans? What about designs? Does it make a difference if the customer lives in the same state as the registered LLC?

That would likely be a question for an accountant. I believe in general, you tax goods/products and not services. Hosting is a service, as is design as well. You don't have to charge customers tax, but you will be taxed on your earnings (of course).

Hosting is a service, as is design as well.
Thank you.

I'm going to keep researching what federal forms an LLC has to file.

So should a hosting company charge tax on hosting plans? What about designs? Does it make a difference if the customer lives in the same state as the registered LLC?

No, in New Jersey you do not charge tax on hosting or design services (See page 18 of the taxation guide HERE (http://www.state.nj.us/treasury/taxation/pdf/pubs/sales/su4.pdf)). When you register the LLC with the state, they automatically place you in the proper category (provided you fill the forms out correctly). However, if you are going to offer printing services or other services that are taxable, you need to inform them as they will expect you to file monthly.

No, in New Jersey you do not charge tax on hosting or design services (See page 18 of the taxation guide HERE (http://www.state.nj.us/treasury/taxation/pdf/pubs/sales/su4.pdf)). When you register the LLC with the state, they automatically place you in the proper category (provided you fill the forms out correctly). However, if you are going to offer printing services or other services that are taxable, you need to inform them as they will expect you to file monthly.

Great! Thank you. Both are E :agree:

Any further comments/suggestions are always welcomed and appreciated.