Hello, I am thinking of becoming a Rackforce.com reseller and wonder if anyone is currently doing this or knows if they are a reputable company. I have talked to their sales people several times and they are always very knowledgeable and helpful.

I also wonder if I am required to charge sales tax to my customers and if anyone has any other tax information. (I know the laws are different from state to state. I am in Ohio. )

Thanks for your help.

I don't know much about rackforce but may I suggest you investigate The link in my signature. I offer affordable reseller solutions.

Your tax question: You do not HAVE to charge sales tax because you are selling a service and NOT a product. You can charge the tax if you wish, but it's easier not to. At least this is what my accountant told me.

It depends on the state and/or city you are doing business in. Some places do require sales tax charged on some electronic services.

Check with your state or city Tax office.

LOL probably better to ask an accountant since the people that answer the phone at government public facilities barely graduated high school... at least this has been my experience.

You're probably right about that! I was just curious if anyone might have known about the taxes. I know am I going to have to check with the government eventually.

Do most resellers start of as sole proprietorships or do they incorporate before they start business? I know it would be safer as a corporation but I don't really want to go through the hassle of doing that right away, especially if I'm not sure I'll succeed. I guess that isn't a very positive attitude though, is it?

When I spoke with my accountant he said the rule of thumb is not to bother incorporating unless you plan to have $100,000.00 in revenue per year. Also if you are going to seek venture capitol eventually it is also helpful to have a corporation.

Yes it's a hassel but it's sometimes worth it. Sometimes it isn't. If your not incorporated you have a different tax classification and it's easier to write off more personal expenses as business expenses as if you are incorporated it changes the whole game.

You know you're right. I never thought about it that way. It would be easier to take deductions that are sort of borderline (ie. things used for business that are also used for personal like computers and stuff....) if I were not to incorporate right away.

Thanks for all the info I really appreciate it.