My question involves business law in the state of: Michigan.
I'd like to start an Amazon.com-style ecommerce site, providing horticultural nurseries (within Michigan, but eventually out-state as well) with their own branded estores and general marketplace.
I've found an ecommerce platform which permits me, as the admin, three ways to charge sellers, for use of the site:
- Collect a sales commission, just as a salesmen would, for bringing together buyers and sellers
- Charge sellers a flat fee for listing on the site and buyers and sellers would deal directly--however, on or through my site. I, as the admin, would not profit from particular sales.
- I, as the admin, would also have an option to charge listing fees, not less than a dollar per item.
It seems to me that I would be providing a sales-tax exempt SERVICE, not selling a product.
Will the Michigan tax man disagree?
Or am I creating a tax and accounting nightmare, where I might need to pay sales tax in every state to which sellers ship!
Should I incorporate or LLC?