Setting Up Dropshipping Business-Taxes

[TopNotchTrends]

I am trying to set up my LLC to sell with the Shopify dropshipping store. Do I need to collect any taxes from customers (on my store) or does the manufactures just charge us taxes and we dont charge the customer?

Below is what I'm being asked. 

Select your Tax Types:

 -Sales Tax Account 

 -Withholding Tax Account 

 -Corporate Income and Franchise Tax Account 

 -Other Revenue Tax Account (Composite Individual Income Tax or Fiduciary Account) 

 -Unemployment Insurance Account 

 -No Accounts Needed

[Victoria]

Hi, @TopNotchTrends.

Welcome to the Shopify Community, and thanks for sharing your question.

When operating a drop-shipping store, you are responsible for collecting and remitting sales tax for sales to customers in any state where you have a tax nexus. The taxes charged by manufacturers or suppliers are separate and generally handled as part of your business expenses. It's important to consult with local tax authorities or a tax professional to understand your specific tax obligations and ensure compliance with tax laws in your jurisdiction.

[TopNotchTrends]

Thank you for answering. I have been in contact with someone who does taxes but he is not sure how the process works for drop shipping. So, I do charge taxes on my items, I got that, but let's say it's in another state how do I know what taxes to charge them? Is there any other information you can give me about out of state taxes?