In all my years of creating and selling digital products in multiple niches, and learning about digital product sales processes, systems, funnels, and so on…
I’ve never once heard or seen anyone talk about an incredibly important aspect of doing business online:
Taxes.
And I’m not talking about income tax on personal income or even business revenue, because that’s surprisingly simple enough…
I’m talking about state, county, and even city sales tax nexus, and VAT tax if you’re going global.
Now I’m no accountant, bookkeeper, lawyer, or tax specialist…
But apparently, after you make a certain amount of revenue or reach a number of transactions within a state or country…
You’re supposed to register your business with that state or country, then collect and remit sales tax.
Knowing this, you really have 2 main options:
- Give up a bit of control and sell through a Merchant of Record like Gumroad or Skool where they take care of all that for you
- Have complete control and handle it yourself, hire a tax service, etc
In my case, the hundreds of sales of my products in various niches have been spread out across the world enough that I haven’t reached sales or VAT tax nexus thresholds…
But it’s an important thing to at least know about to stay legally compliant and not get an unwelcome surprise bill or notice down the road once things pick up for you.
If you want to know more about this stuff, then let me know and I can point you to some resources that helped it all make more sense to me.
In the meantime, check out The Info Product Lifestyle Blueprint where I take you through the step-by-step process to launching your own digital product business:
https://gabejohansson.com/blueprint
I may not talk about taxes and stuff in there because I’m not qualified, but I will share the systems and strategies I used to collect 150 payments from a small audience.
Any questions? Let me know.
Talk soon,
-Gabe