Online business - sales tax process

[bisuit]

Hello! I'm a newbie (for everything) so please bear with me.

I've created a website on Square, listed items and started posting on social media. Later I found out that state of Michigan collects sales taxes (item and shipping) only after you are registered in the state. 

Found a thread (https://www.sellercommunity.com/t5/Questions-How-To/Do-I-need-a-Tax-ID-or-EIN-to-use-Square-for-busi...) and now I'm confused. 

I have FEIN (even as a sole proprietor). Currently I'm waiting for DBA to go through, then I plan to register the business in Michigan. Then I should be able to sell with no problems? Is that correct?

When I do get sales later in the year, do I need to pay back the state however much sales tax I have gotten? Is it as simple as that? 

Thank you for your time guys!

[Joe]

Hi there, @bisuit 👋 Welcome to the Seller Community! We are stoked to have you in the fold. Thanks for taking the time to put so much context to your inquiry - we love the details!

Square allows you to process transactions while registered under a SSN, EIN, or TIN - and this designation can be changed at any time from your Online Dashboard. 

More specifically to your question in terms of how you should pay back to the state, we would recommend you reach out to your local tax professional on how specifically to register. We try to refrain from giving tax advice here on the Community - we are qualified to answer more Support based questions in regards to our products and services.

Let me know if you have any questions! I will do my best to assist.