If you sell software online via a 3rd party payment processor (Swreg, Digital Candle, etc.), do you have to collect and remit state sales taxes? In Ohio, normal vendors only need to do this for sales made to Ohio customers, but in the online case I'm wondering if this is even necessary. The 3rd party is technically the seller and they pay the developer after the sale is made. The developer then pays income tax (or at least should) on his proceeds. Reason I ask is because if one obtains a vendor's license in Ohio they are required to collect/remit sales taxes, even if they have no taxable sales. Seems like a hassle if it's not necessary nor required by law in the online case.

This is not the answer you are likely looking for, but I suggest you speak with a knowledgeable accoutant. Laws vary from state to state.

I spoke to an accountant and he didn't know anything about online business. Time to find a "knowledgeable" one.

:-)