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We sell music downloads online. We'd like to start selling physical CDs online. What do I need to do before I start selling?

Full Question: We sell music downloads online. We'd like to start selling physical CD copies online. What sales documentation do I need before I start selling physical CDs?

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Answer:

Diane Yetter photoMD does not tax electronically delivered items as they are not included in their definition of tangible personal property. If you start selling tangible CD's you will be considered a retailer and be required to collect sales tax on the sales of CD's into states where you maintain substantial physical presence as defined by each state. Assuming your only presence there either your own company or any independent affiliates or agents in only in MD, then you would need to collect sales tax on any deliveries to customers in MD. Before you start selling you should register to collect tax with the Comptroller of Maryland. You can visit: http://business.marylandtaxes.com/filinginfo/taxreturn.asp for more information.

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