Question

Your brother is thinking about starting a Web-based business selling specialty teas to upper middle class American women who are working outside the home for compensation. If the business is to start up in three months, what key decisions will your brother face during that period, and how might state and local taxes impact them? (State: NY)

Answer 1

Web-Based Business & Key Decisions (Before Start):

Before start of Web-based business specially of Tea, we must assure about product sourcing in nearby area ie, the farmers lobby and direct purchase from farmers with long term assured supply agreements must be required to be ensured as key decision. Thereafter Second key decisions is to attract the perfect customers through different prevailing sources inlcudes of social media sites, amazon & others. Thereafter we need to arrange the Infrastructure to carry out our business smoothly with a long term views. Privacy & Security of our business activities is to be strictly assessed. Payment and Tax related issues are to be resolved with proper legal advise so as to avoid Cyber Laws related problems. Our Technical infrastructure must be having sufficient safeguard to face any types of Virus Problems. Once we start our business, we must adhere to the quality of products so as to keep the exisiting customers retaained with new customers entry. We must try to create a Brand Image in our business.

With regards to Sale Tax on Tea, we must consider that Beverages may be sold in liquid form, frozen, or as powdered mixes. All beverages sold in cups, whether served hot or cold, or with or without lids, are taxable. Particular Act & laws are applicable on Tea. The Tea Act, passed by Parliament on May 10, 1773 & further amendments are to be taken care of. The Sale tax liability will enhance our cost, so selling price is to be decided considering these but the price should still needed to be competitive one from the other sellers to create a new market.