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The e-commerce.

Should taxes be included in product pricing?


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Im about to start my first business and Im unsure about how uncle sam works. I live in California where we have %8.25 tax rate. If I bought a product from my distrubuter for say $5 using my resellers permit so that its tax free and Im going to be selling it for $10 to make a $5 dollar profit. Do I need to include the %8.25 tax in that product pricing if I want to achieve the $5 profit? At the end of the year do I have to pay taxes for that product since I didnt have to pay for it at the time I bought it with my resellers permit?

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When it comes to taxes and other legal questions it's always best to check with your local tax office or professional. Any advice other than from a professional could be wrong and get you into some hot water.


In short, pay a few dollars for a profesional or a lot of dollars in legal fees.

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