CA Amazon Tax - Asking for any Help

by redstanford Posted: 13 years ago 22 replies

i don't post on here very much anymore as i have been focusing entirely actually working on my Amazon associates business. i am really beginning to see results of my efforts but today i found out my business could be close to instant death if the Amazon Tax Law is passed in California.

this would be absolutely devastating to my business. i cannot just move to a state unaffected because my day job keeps me here. believe me, if i could i would.

i am asking anyone for any real tips to get around having my Amazon Associates account closed. any help will be greatly appreciated. this has been my pride and joy for the past 6 months. i don't want to lose it because of this newly about to be passed law.

#main internet marketing discussion forum #amazon #tax

MatthewNeer 13 years ago

Hey Red,

Sorry to hear about that man. I've been keeping my ear to the ground as well and have heard TONS about the Amazon Tax Law about to be passed in CA.

What I don't understand is how that would shut your business down overnight? Sure it might tax you a portion of your income but I dont see how that would kill your business? You would just be making a little bit less profit right?

With that said, maybe you can open a business license in Nevada or something because tax laws are much lighter over there. Maybe it will be worth looking into for you...
- [2] replies
- myob 13 years ago
  
  This will affect over 10,000 Amazon affiliates in California, and Amazon of course has already demonsrated that they will immediately dump affiliates when the law passes. It's certainly no big secret about their intentions in California. I've been an affiliate since 1996 and built it into a very comfy 5-6 figure monthly income. But just as Amazon has to make tough business decisions, affected affiliates are also faced with making some changes.
  
  Some affiliates may move, others may incorporate in other states, and many perhaps will join other affiliate programs. There may be additional suggestions offered here, but the uncertainty looming in planning for the lucrative holiday season is forcing our hands to make changes very soon. Personally, all of my links are being swapped for similar products in other affiliate programs. Cya, Amazon; it's been a nice ride.
- ARVolund 13 years ago
  
  No, not talking about income tax...
  
  Amazon will be dropping all affiliates in Ca because the state wants them to start collecting sales tax. Just did the same thing in my state I am dropped as of Jul 24.
  
  Really you do not have all that many choices. Find another company, try telling them you moved, or create a corp or LLC in another state.
  
  I can not imagine trying to use a fake address will work very well, I am sure a lot of people will try it but I would think they would want to see some paperwork.
  
  [1] reply
webapex 13 years ago

Amazon also owns properties in CA they will have to dump, have top wonder if they are hoping the affiliate threat will get 10,000 extra letters written to congress. I heard mention of another CA bill that would would more directly effect affiliate?

Wyoming, Montana & New Mexico may be less costly than Nevada for LLCs
serena85 13 years ago

And now to be honest it is a well deserved tax because you are creating an income. And all that is listed as an income most be taxed.
- [1] reply
- AnniePot 13 years ago
  
  Get an address in another state. These two services could probably help you:
  
  Regus USA
  
  Mail Forwarding with UsaForwarding.com | US Mail Forwarder | US Mailing Address | Forward Mailing Address | How to get a USA Mailing Address | Mail Forwarders
  
  I have no affiliation with either company.
  
  EDIT: Also, open an online bank account with a bank such as ING Direct. This won't point to you as living in California.
  
  [2] replies
weblink29 13 years ago

I just read that Amazon is closing warehouses in certain states over this:
Amazon CEO: State tax demands violate Constitution

This is from the Amazon.com website:
Amazon.com Help: Sales Tax
Items sold by Amazon.com LLC, or its subsidiaries, and shipped to destinations in the states of Kansas, Kentucky, New York, North Dakota, or Washington are subject to tax.

I live in NY myself. It looks like they already collect sales tax in NY State. I would assume this won't effect states that Amazon is already charging sales tax in. At least they haven't moved to Mexico yet like so many other companies.
txconx 13 years ago

I don't understand how dropping affiliates helps Amazon.

The tax is for ALL online sales to anyone in California, regardless of a company's presence in the state. Amazon will have to collect/pay sales tax on sales to anyone in the state of California. In order to avoid this tax, they'd have to drop affiliates AND refuse to sell goods to anyone in California. I don't see that happening.

I'm hoping that if they have to collect sales tax on all sales in the state, they'll retain their affiliates in the state.
- [1] reply
- weblink29 13 years ago
  
  I believe the state is going after tax because they consider affiliates "employees" of Amazon and therefore are entitled to taxes. If Amazon drops the affiliates in the states they no longer have "employees" in the state and therefore no tax is due.
  
  [1] reply

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CA Amazon Tax - Asking for any Help

redstanford • 13 years ago • 22 replies

i don't post on here very much anymore as i have been focusing entirely actually working on my Amazon associates business. i am really beginning to see results of my efforts but today i found out my business could be close to instant death if the Amazon Tax Law is passed in California. this would be absolutely devastating to my business. i cannot just move to a state unaffected because my day job keeps me here. believe me, if i could i would.