As a merchant of an online business, you will have to pay both state sales tax and federal income tax on your sales. You can pass the sales tax down by charging internet sales tax where laws are applicable. You should research what your state online sales tax regulations are to be sure, but most states charge the same sales tax in stores as they do for when you sell online. You can *NOT* keep the sales tax or overcharge knowingly on sales tax, so be sure to follow your state's regulations.
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