Mandatory $500 sales tax bond in Mississippi before starting online homebased business?
by sharon837, Window Shopper
- Created: January 7, 2012, 12:21 pm
- Updated: March 23, 2014, 6:25 pm
Has anyone else had to deal with this? The licensing and permitting part for homebased online only businesses in Mississippi is fairly straight forward. You need 1. register a business name ($25 to $50), 2. a business license (~$50), 3. a seller's permit ($36). Neither one of these things are over $100 to get.You also need a state sales tax ID number of course, which is free to get. However, I was told that because what you do will be done at home (doesn't matter if its online, part time, full time, whatever), the state of Mississippi wants a $500 cash sales tax bond before you get a sales tax permit. That's $500 cash upfront, period.I had the idea of selling a few homemade bath and body products online only. I don't want to open a store. I won't have employees. I don't want to put up signs. There's not a special place in my house dedicated to this. I may not even make $500 worth of products to sell, but mississippi wants $500 before I can even get started.Has anyone else had to deal with a similar issue? Have I been mislead? I only ask because the first person I talked to in the MS Department of Revenue advised me to contact every state to see how much tax I had to charge for each online purchase to each state. (Wha..? I always thought you only had to charge tax to people who were in the same state?)One lady even told me they want a $500 cash bond because the state can't come and lock me out of my house JUST INCASE I decide in the future to not pay sales tax on what they THINK I'm selling. The mere fact that I contacted the Department of Revenue to comply with the law should mean that.... I WANT TO COMPLY with the law. lol!I mean, not every business is honest, and i wouldn't even complain if the fee was reasonable. But $500 cash up front with no installment plan is terrible for people like me who want to start out incredibly small and see how/if I can build from there.http://www.sos.state.ms.us/busserv/AdminProcs//PDF/00015355b.pdf (read 101)Can anyone give me some advice concerning this? (BTW, it could be that I just haven't found them, but I don't see hardly any online bath/body businesses located in Mississippi.)
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