I don't think you need to pay taxes unless you make certain amount from your business. And yes you will need sellers permit do to any kind of business.
Well that's what in where I live. It might differ at your location.
Contact your local tax offices, and ignore 99% of the advice on the subject you receive from WHT.
If they tell you, that you do not need to pay taxes/charge it, make sure to get them to cite documentation in writing that says this, or ask them to provide you with such documentation (thus if you're ever challenged on the subject, by the state, in the future, you can produce documentation, and hopefully not be liable on a retroactive basis).
Aside from that, WHT is a poor source of tax advice, especially when compared to the tax offices/authorities on the subject.
For us, we don't have to pay Sales Tax, because we're not trading in physical items. We're in South Carolina, so that may make a difference, but since we're selling services not items, we don't have to pay that. We're incorporated. We do have to pay income tax though, so we do get taxed, just not for sales tax.
Like others have said though, I would consult a tax professional.
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(7) Charges made for the use of a computer, on a time-sharing basis,
where access to the computer is by means of remote telecommunication
are not subject to tax. (See subdivision (i).)
(i) RENTAL OF COMPUTERS. A lease includes a contract, by which a
person secures for a consideration the use of a computer which is not
on his or her premises, if the person or his or her employees, while
on the premises where the computer is located operate the computer, or
direct and control its operation. A lease does not include a contract
whereby a person secures access by means of remote telecommunication
to a computer which is not on his or her premises, if the person or
his or her employees operate the computer or direct and control its
operation by means of remote telecommunication. (See Regulation 1660
for application of tax to leases.)
The only answer that really counts is to ask your CPA. They can help you with your specific case in your business model.
That said, in general, sales tax in most states is for sales of tangible property and generally, the state wants that tax on the highest price paid for that tangible property (if you buy something and pay sales tax on it, but sell it later for more, then the state wants sales tax in that higher amount). If you buy hardware for your business that you never sell, then you need to pay tax on it when you buy it (or file a tax return on it and pay it that way). In CA, services (ie: labor, support, monitoring, etc) are not generally taxable (although they may be if related to a taxable sale of tangible goods).
If you buy something on-line, over the phone or from a catalog from another state, and you do or don't pay tax on it, you actually are supposed to pay the state of CA a "use" tax on it that is equal to the sales tax rate in your locality minus any sales tax you paid to the retailer.
Funkywizard has quoted text from the State Board of Equalization (the people who collect the sales and use taxes in CA). Bes tot ask your CPA to make sure it applies to you. The Board of Equalization in CA are some tough cookies. Worse than IRS. If you sell tangible goods, best not get on their bad side.... so ask your CPA.
You're definitely in a grey area here. You ARE a business based in CA, and technically you need to collect sales tax from companies IN California.
If the people/companies you are hosting for are outside CA and never set foot there you DO NOT have to collect sales tax in CA.
Case law is being established where having even one "affiliate" in another state means that you have to collect sales tax in that state. NY is a good example. Usually we are too small to be bothered with, but once you get big they're going to come for you. We don't collect sales tax from anyone.