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Do I need a sales tax license for a web-based business?


I'm starting a classified ads website and after the site gains popularity I am going to start charging a small fee for premium ads and still offer free ads of course. I was wondering If I would need to charge sales tax for those customers that buy premium online ads since these are not tangible goods? Thanks!

Depends on the state you live in and who your customers are.

If your state imposes taxes on classified ads then you must charge and remit those taxes on any in-state ad purchases.

Go to your state's website (usually www.yourstate.gov) and look for the guidelines for sales and use taxes.
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