Setting Up Co-Hosts for Tax Purposes: What Do I Need to Know??

[esavvymom]

Not sure if I'm putting this in the right category, but I'm doing a show in a few weeks that I'm setting up as a co-host between my Mother-in-law and her daughter. Both are nurses and have lots of work contacts that I'd like them to be able to take advantage of. But my MIL lives in Illinois where tax rate is one % and no s/h taxed. My SIL lives in Wisconsin just over the border, and her sales tax is MUCH lower, and is taxable on the s/h.

What do I need to do for that?? Do I set them up as co-hosts, and then the orders are taxed based on which host they are shipped to? Do they ship to one host only or can it go to two separate? I could have them go to MIL and my SIL can get the orders from her there, but I've not done this setup before.

??

 

[teresah551393]

I would set it up to have everthing go to your MIL, saves all your customers. Otherwise, direct shipping would probably apply, and that is higher still!

 

[jross93]

the tax rate is based on where orders are shipped to. the show will have 1 shipping address....unless someone wants direct shipping, which will cost more. if they can come up with enough orders, you may want to enter them as separate shows so they don't have to share the benefits.

Jen

 

[ChefBeckyD]

When you have a Co-host, everything still gets shipped to the Host. Anything shipped to the Co-host would be charged direct shipping prices. You have to charge shipping to where it is shipped.

 

[esavvymom]

Thank you.

 

[scottcooks]

You can setup different tax rates for Co-Hosts. When you enter the orders, you indicate where the items get shipped.It is walking a hazy line to not charge tax to Illinois customers that they should be paying. Better to take the high road and split them out. Besides if any of them are previous customers, HO is put at risk if you don't charge them tax for your show.When in doubt, call HO. Better safe than sorry!