how do you charge sales tax on your,shopify store how do you pay your sales,tax,and all that sticky stuff coming up in,today's video,hello hello and welcome back to the,channel if you're new here,and we don't know each other you've,never met me my name is carrie i'm the,founder of shirt school,and i created this channel to bring you,the best strategy secrets and hacks,to grow your online t-shirt apparel or,print-on-demand business,and in today's video we're once again,talking about my favorite thing in the,world,taxes if you're anything like me taxes,just give you a headache,and they're just constantly frustrating,and it just feels like i'm always paying,taxes so,taxes really stink but luckily today,we're going to specifically be talking,about sales tax on your shopify store,and i'm going to show you the easiest,way that i've found to collect it and,actually pay it to your state and how,that all works,this is a question i get all the time,like gotta be one of the most asked,questions,is about sales tax and how to collect it,when to collect it and how to pay it,all that kind of stuff so hopefully,today i can bring some clarity to this,question,and help you out the first thing i want,you to know about sales tax,is that you only pay sales tax on sales,that you make inside,your state okay that's one of the,beauties that we have,being an online business is that we,don't just sell in our state locally we,sell,all over our country and maybe all over,the world,and we don't have to pay sales tax on,any sales outside of our state of,residence they call this sales tax,nucleus and so you have to pay taxes,in any state in the united states where,you have nucleus,now that basically means you just have,to have like an office or some kind of,residence there right so for most,online businesses especially small,businesses you're only going to have,that nucleus,in one state wherever your business is,located even if you're running from your,home,you're going to have to have a physical,address and so most likely for most of,you that's going to be,inside your state only to use amazon as,an example,amazon has fulfillment centers and,offices,all around the united states so amazon,has to charge taxes,in most states in the united states,that's why even though amazon might be,based in a certain place,they have since they have facilities all,over the u.s they have to pay sales,taxes on all the sales in those states,but luckily since we have a small online,business you most likely only have that,one location,and so you're only going to pay sales,tax on the sales that you make,inside your state of residence okay the,last thing i want to say and then we'll,get into the tutorial on actually how to,set this all up in shopify,is that i've said it a lot and it's,another question i get that's very,related,and i recommend that you don't get your,llc or your business licenses,before you actually have some sales,under your belt right i recommend that,you get started on shopify,without doing all of the the llc's and,business licenses and sales tax permits,go ahead and get a few sales under your,belt before you actually,get your business license and you start,paying your sales taxes,you want to make sure this is something,that you want to continue with so a lot,of people really stress out,when they're first starting and luckily,you don't need to stress because you can,actually,claim you know put your under your,social security number on your taxes you,can put your sales under there,you don't have to worry too much about,sales tax when you're just starting out,but once you have some sales and you,know that this is going to be,something long-term for you and that,you're going to stick with you want to,make sure you do,get your llc get your business license,get your sales tax permit,and you start paying that sales tax each,month if you are just starting out,you're brand new and you're watching,this video and you're like i don't have,my business license okay,i recommend that you go ahead and set up,sales tax in your shopify account so,that you are collecting it,but go ahead and just set it aside hold,on to it just in case you need to pay,those sales taxes later,that's what i recommend you don't,necessarily have to do that but even if,you don't have your business license i,would just turn it on,collect it put it aside maybe in a,separate account so that you're not,tempted to spend it,and just so you have it there in case,you need to come back and pay those,sales taxes,hey if you're getting value out of this,video smash that like button and also,make sure you subscribe,to the channel and hit that bell icon,when you subscribe,and hit the bell you're gonna get,notified each week when we put out,videos,now as much as i hate talking about,taxes,i know you love hearing about it so i,plan to put,out more videos related to this kind of,content so if you want to see that,make sure you subscribe back to the,video okay jumping into shopify inside,of uh,test account that i have here i want to,let you know setting up sales tax in,shopify,is actually a very simple process,a lot of people get really scared of how,to do this and it's it's actually pretty,simple so,all that you want to do is go to your,settings here and you're going to want,to go to,taxes right there right and so we have,uh some different options here you're,welcome to look through these and see if,you you want to use any of those options,what we're going to want to do here in,the united states we're going to want to,go right here and hit,setup okay now the great thing about,shopify is once you set this up,it's going to automatically calculate,all the sales tax,for all the counties in your state and,it's just going to do all the hard work,for you,so you're going to hit this collect,sales tax button and you're going to,select your state of residence,and i will select oklahoma right here,and then we're going to simply hit,collect sales tax okay you don't have to,put in,your uh your actual sales tax id you can,go ahead and start collecting it without,that,and put that in later as you saw me do,there so,after you've done that that's it that's,all you have to do in,shopify so after this first step,your customer is going to have to pay,the additional sales tax,on any purchases that they make if they,are inside of your state,this is not a big deal if somebody if,you go down to the convenience store you,buy something you're going to expect to,pay sales tax,so here in oklahoma for instance if i,have somebody joe down the street that,buys something,from my store and he's in oklahoma and,i'm in oklahoma he's going to expect to,say pay sales tax,so once you've set this up your store is,already collecting sales tax you don't,have to do anything else on your shopify,store,to actually collect the money i do want,to make sure you understand,that shopify will not pay your sales,taxes for you,they are simply going to collect it from,the customer and give it to you,and it's just going to get lumped in,with the revenue that you're making and,you're collecting from your sales,so you're going to have to actually put,it aside and not,spend it so that you have the money,there to pay your sales tax,step number two you're going to want to,find where you pay,sales taxes inside of your state now,keep in mind,you only want to do this if you already,have your llc your business license and,your sales tax,permit okay you have to have that before,you can do this,so make sure you get your business,license get your sales tax permit,then you're going to want to find where,you pay taxes okay,here in oklahoma it's okay tap this is,the website i know most of you guys,aren't watching from oklahoma but just,to give you an idea of what this looks,like,now here in oklahoma we have to remit,our sales tax every single month,by the 20th of the month for the,previous month,so all you're going to want to do here,is simply get your uh your account set,up with,whatever whatever website for your state,you know find the one for your state,get your account set up and find out,when sales tax is due,each month this is the one that i log,into here every month you know in,in oklahoma this is where you pay it now,the next thing i'm going to show you is,really cool because,you don't really need to know how to,work these systems if you use this,method,you just need to get a login created get,your account,set up step number three to get your,sales tax completely done,is to install and start using an app,called,tax jar sales tax automation,if i could tell you how much uh money,and time,this app has saved me you can see here,it's got a 30-day trial and it starts at,19,per month in my opinion very very well,worth whatever they want to charge,what this app does it's a shopify app so,you can just go,uh out to the shopify app store install,this app into your shopify store,what this is going to do is it's going,to auto file your sales tax for you,each month you don't have to do anything,you just set up auto file,you're good to go tax jar is a lifesaver,and it makes it to where,you don't have to manually go to the,taxpayer you know the taxpayer website,and pay your sales taxes each month,and i will tell you from my experience,i'm sure maybe some states are easier,than others,oklahoma is not easy it is a pain in the,butt,you have to go in and enter each county,and all the amounts and the county codes,and so this tax jar sales automation app,eliminates all of those headaches and,remits your sales tax,for you each month and it will also know,in your state when sales tax is due but,you're going to have to have at least,have a,login to your state's website so that,you can give that information to,tax jar and let them let them access,your taxpayer account,to quickly recap the steps to get your,sales tax,set up and start remitting it to your,statement state and this is really the,easiest method,number one turn it on in your shopify,store super simple right just turn it on,number two set up an account with your,state's taxpayer website wherever you,pay,sales tax you need a log in there you,probably need to know when it is due,each month,number three install and set up tax jar,on your shopify store give it whatever,information it needs,and tax jar will remit the sales tax for,you each month,on your behalf making it super simple,where you don't even have to think about,it right,the last thing you want to think about,as the ceo of an online apparel business,is having to pay those taxes each month,it can take you literally hours and,hours i have spent,more hours than i would like to admit,manually paying sales tax before,i found tax jar many years ago there,were some days where i would spend five,or six,hours typing in county codes and amounts,and it is not fun,so this is by far the easiest uh easiest,way to do it and i recommend that you go,do it right now hey if you have not yet,set up your shopify store,i want to invite you to head over to,shirtschool.com,shopify and grab a 14 day free trial,that is an affiliate link,we'd love it if you used our link and,actually signed up for your 14 day free,trial with shopify,we believe shopify is the best,e-commerce platform,bar none hands down it's got the most,flexibility the most features it's the,easiest to use,and it's very very affordable you don't,need any additional tech to make it work,shopify is amazing get your ecommerce,print on demand t-shirt apparel store,setup,and just head over to shirtschool.com,shopify get that 14 day free trial,we'll see you next week,you
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