what is going on Amazon sellers or hopefully soon-to-be Amazon sellers my
name is Beau Crabill and in today's video I'll be discussing about taxes and
what state are you able to register business in to pay the least amount of
taxes
now keep in mind with this video and there may be some possibilities where
you're not able to register in business in these states because you don't live
there or you're not getting mail there so definitely check with a tax attorney
or a lawyer or a financial adviser in regards to this to make sure it's
actually able for you to go do that however in this video I'll be discussing
about federal corporate taxes for businesses also be talking about state
corporate taxes then also some miscellaneous B&O and gross receipts
taxes that may happen in the business that you're in right now so if you own a
business in the United States you're going to be taxed at the corporate
federal levels every single business doesn't matter what state you're in and
that corporate federal level is 21% as of 2018 it's 21% it used to be 35% this
year a new bill was put in place so that's great another great reason to
start selling on Amazon or have a business online is 2018 the taxes went
down by quite a bit for corporations businesses however 44 states are also
going to be taxed at the state level so as right there we can cross out those 44
states say well probably don't want to register business there because on the
low end you can tax an additional 3% and that's going to be in North Carolina and
on the high end there's going to be 12 percent which is Iowa so now with me
there's six other states that have zero percent of state tax levels now it
does that mean they're going to be the best to register in some yes some no and
now I'm going to lead to those six states that have zero state corporate
taxes so those six are Nevada Washington state Ohio Texas South Dakota and
Wyoming now with Washington Nevada Ohio and
Texas there's going to be a thing called be B&O or gross receipts taxes now what
that pretty much means and some economists will actually say that gross
receipts taxes are actually worse for businesses it definitely depends what
state you're in etc however pretty much what it is you're getting
tax at the gross revenues or gross profits depending what state you're in
for that so for example in the state of Washington you're getting taxed at its
point zero four of a percent per quarter so point four of a percent per quarter
off those taxes so if you do one hundred thousand dollars a year I believe it
turns out to be about thirteen thousand or something along those lines like per
quarter however you're not getting the corporate state levels so those four
states yes they're still getting taxes on there and it may be better to
register in a state that has the state corporation levels like the low ends
North Carolina however the two states that were leftover right now South
Dakota and Wyoming they have one no state corporate levels and then also
they don't have any that gross receipts taxes as well so in regards to what
state you can pay the least amount of taxes in it would be South Dakota and
Wyoming right however then you do have to think about are you able to actually
register business they're the reason I'm actually bringing up this video is
because my business is ran on wine so I really I'm traveling all the time of
visiting suppliers and I don't need to be in a central location so if I was
able to register a business in Wyoming or South Dakota and somehow make it
legit where I could accept mail there and everything that would be the ideal
situation I'm going to save you the least amount of taxes for that however
then there's also a thing that comes in play with personal estate income tax so
let's say you do have a business and paying yourself keep in mind that some
states will actually have state income tax for personal levels I know
Washington state Nevada Florida Wyoming and South Dakota also do not so there's
also something to keep in mind as well so now we're going to this video is
about its kind of researching for yourself so if you're trying to think
about how much tax is that you're paying in regards to your state I would
definitely try to research yourself on what is the current state income level
on paying for taxes right Iowa it's 12% do you have a business that's right now
is in Iowa or are you in North Carolina where it's 3% are you in Washington
State right now and you realize that the gross receipts tax is not for every
single states only four than the entire United States so just think about
that now again I'm not a tax expert and actually at some of my mastermind events
I will be having it expert there so just because you're
registering your business in South Dakota Wyoming does not necessarily
always mean you're gonna be paying the least amount of taxes there's other ways
to set up your LLC's and corporations and other ways to pay your employees off
of that deductions and definitely the tax expert all be having in my mastermind
events we'll be able to go cover that to for people on however that is all what
I wanted to mention in this video there's a great value to you and now you
understand more about taxes