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So you finally sold a domain - Now What?

Labeled as advice in Domain Beginners, started by MapleDots, Sep 29, 2020

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6
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560

  1. MapleDots

    MapleDots Top Contributor VIP

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    Advice 101 for beginners and newcomers.

    Stop looking like an amatuer

    Here is a free tool for you to generate a bill of sale.
    https://invoice.org/

    Picture0004.png



    NOW FOR THE IMPORTANT STUFF....

    1. Generate an invoice (Bill of sale)
    2. Get complete name and address of purchaser.
    3. Make sure you put down the name of the sold domain.
    4. Get a signature
    5. ABSOLUTELY make sure you put down the method of payment and any reference number to it.
    6. If possible get the godaddy (or other) account number of the client you are transferring the domain to.

    Information is your friend, the more information you put on a bill of sale the greater the odds for recovery should something untoward happen with your transaction.

    Lastly...

    If you sell domains for more than a hobby please make sure to charge tax. Charging sales tax is your friend because you can claim back all the taxes on your expenses. Selling domains and not collecting taxes is like asking for an audit. Collect the tax and take advantage of claiming back the tax you spend on your expenses.

    Of course I assume nobody is silly enough to not claim the profit on their income tax, that part goes without saying. All forms of payment are monitored and reported to the tax man. In certain countries even crypto currencies are now specifically named in the tax laws.

    ----------------------------------------

    Hope it helps somebody

    Your friendly neighborhood MapleDots
     
    Last edited: Sep 29, 2020
    The views expressed on this page by users and staff are their own, not those of NamePros.
  2. Paltzar

    Paltzar Hardware.company

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    thanks for share (y)
     
  3. MapleDots

    MapleDots Top Contributor VIP

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    If anyone is using this invoicing system maybe post an example of what one of your finished invoices looks like.
     
  4. namescan

    namescan Established Member

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    I just worry if invoice .org collects the personal information that's entered, or if they promise to keep no data?
     
    Last edited: Oct 10, 2020
  5. DigitalRoar

    DigitalRoar Investor & Creator VIP

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    Digital products are tax exempt in California. It depends on where you live.
     
    Last edited: Oct 10, 2020
  6. equity78

    equity78 Top Member TheDomains Staff TLDInvestors.com PRO VIP ★★★★★★★★★★

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    Always make sure to consult an accountant or tax attorney before charging anyone any kind of tax. Also make sure you have a permit if you decide to charge sales tax because in the U.S.

    Most states consider it illegal to collect sales tax without a permit.

    You can find out how to register for a sales tax permit in every state here.


    In their point of view, if you collect without a permit you are representing to your customers that you’re collecting sales tax, but pocketing the money for yourself.

    Always have a valid sales tax permit before you begin collecting.

    When they issue your sales tax permit, your state will also assign you a sales tax filing frequency. This is generally either monthly, quarterly or annually.

    As a rule of thumb, the higher your sales volume in a state, the more often the state will want you to file a sales tax return and remit the sales tax you’ve collected.
     
  7. ET76

    ET76 Top Contributor VIP

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    I preferred to download free docx or xlsx template and convert to pdf before sent to the buyer. We'll find them very easy by googling them
     

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