How To Accept Online Payments For Businesses In 50 States Of America In Alphabetical Order

The e-commerce business in the 50 states of America has a lot of room for expansion, especially through app-based sales. As online shopping and mobile e-commerce enable new methods to shop for and buy goods and services, e-commerce continues to revolutionize the retail environment in the United States, and consumer confidence remains relatively high. E-commerce is predicted to rise at double-digit rates every year until 2021. Meanwhile, online payment is also developed in parallel with business expansion.

Let’s keep reading to learn more about the eCommerce market, consumer trends as well as how to establish a business and accept online payments in 50 United States lists.

How to accept online payments for businesses in 50 states of America in alphabetical order.

According to 50states.com, there are 50 states in the United States and Washington D.C. Alaska (49th), and Hawaii (50th) were the final two states to join the Union (50th). In 1959, they both became members.

Here is the list of united states in alphabetical order:

Washington, D.C. is a congressionally chartered federal district. A mayor and a 13-member municipal council administer the city. Residents of Washington DC have been able to vote in Presidential elections since 1961, and are represented in Congress by an elected, nonvoting Delegate to the House of Representatives.

Puerto Rico is a commonwealth that is part of the list of US States. Its native residents are all citizens of the United States. Puerto Ricans do not have the right to vote in presidential elections in the United States, but they do elect a nonvoting resident commissioner to the House of Representatives.

Dependent areas: American Samoa, Baker Island, Guam, Howland Island, Jarvis Island, Johnston Atoll, Kingman Reef, Midway Islands, Navassa Island, Northern Mariana Islands, Palmy.

The tax system in the US States in alphabetical order is divided into two parts: federal and state. There are various forms of taxes, including income, sales, capital gains, and so on. The federal and state tax systems are fully distinct, and each has its own taxing power. The federal government has no authority to intervene in state taxation. Each state has its own tax system, which is distinct from the rest of the country. Several jurisdictions within the state may levy their own taxes. County or municipal governments, for example, may levy their own school taxes in addition to state taxes. The tax structure in the list of American States is fairly complicated.

Most taxes are classified into 3 main categories: taxes on what you earn, taxes on what you buy, and taxes on what you own.

a. Taxes on what you earn

• Personal Income Taxes

Individual income taxes (or personal income taxes) are levied on an individual's or household's wages, salaries, investments, or other sources of income.

Many individual income taxes are "progressive," meaning that tax rates rise as a taxpayer's income rises, resulting in higher-income taxpayers paying a bigger share of income taxes than lower-income taxpayers.

The United States has income tax rates ranging from 10% to 37%, with particular income criteria described below. Tax brackets are the income categories for which these rates apply. Every dollar of income that falls under each bracket is taxed at the appropriate rate.

• Corporate Income Taxes

A corporate income tax (CIT) is a tax imposed by the federal and state governments on corporate profits, which are defined as revenues (what a company makes in sales) and fewer costs (the cost of doing business).

Businesses in the United States are divided into two types: C corporations that pay corporate income tax and pass-through entities like partnerships, S corporations, LLCs, and sole proprietorships that "pass" their revenue "through" to their owners tax returns and pay individual income tax.

While C firms are obligated to pay corporate income tax, the burden of the tax is passed on to consumers and employees in the form of increased prices and lower earnings.

According to Tax Foundation , as part of the Tax Cuts and Jobs Act of 2017, the United States cut its federal corporate income tax rate to 21% because of its negative economic consequences.

• Payroll Taxes

Payroll taxes are levied on employees' wages and salaries to fund social insurance schemes. Most taxpayers are aware of payroll taxes because they see the amount of payroll tax withheld by their employer from their salary at the end of each pay period on their paystub.

The greatest payroll taxes in the United States are a 12.4 percent tax to fund Social Security and a 2.9 percent tax to fund Medicare, totaling 15.3 percent. Employers remit half of the payroll taxes (7.65%) directly, while the other half is deducted from employees' paychecks.

Despite the fact that employers pay nearly half of payroll taxes, the economic burden of payroll taxes is carried primarily by workers in the form of lower earnings.

• Capital Gains Taxes

Stocks, bonds, homes, vehicles, jewelry, and art are examples of capital assets that are held and used for personal, recreational, or investment purposes. A "capital gain" occurs whenever one of those assets improves in value, such as when the price of a stock you own rises.

When a person "realizes" a capital gain—that is, selling an item that has gained in value—they must pay tax on the profit.

When capital gains taxes are applied to stock profits, the same dollar is taxed twice, which is known as double taxation. Because business earnings are already subject to corporate income tax, this is the case.

b. Taxes on what you buy

• Sales Taxes

Sales taxes are a type of consumption tax paid on products and services sold at retail. If you live in the United States, you've probably seen the sales tax printed at the bottom of retail receipts.

The United States is one of the few industrialized countries that still rely on traditional retail sales taxes as a major source of revenue for state and municipal governments. Except for Alaska, Delaware, Montana, New Hampshire, and Oregon, all states and cities in 38 states pay statewide sales taxes.

• Gross Receipts Taxes

Gross receipts taxes (GRTs) are levied on a company's gross sales without regard to profitability or deductions for business expenses. This is a significant distinction from other business taxes, such as those based on profits or net income, such as a corporate income tax, or those based on final consumption, such as a well-designed sales tax.

GRTs result in "tax pyramiding," where the tax burden multiplies throughout the production chain and is subsequently passed on to consumers because they are applied at each level of the manufacturing process.

GRTs are particularly destructive to startups and firms with extended production chains, who suffer losses in their early years. Despite being disregarded for decades as a wasteful and unsound tax policy, politicians have recently reintroduced GRTs as a source of additional revenue.

• Value-Added Taxes

A Value-Added Tax (VAT) is a consumption tax levied on the value-added at each stage of a product's or service's production.

Each business in the production chain is required to pay VAT on the value of the generated good/service at that point, with the VAT already paid for that good/service being deducted at each step.

The VAT is paid by the final consumer without the ability to deduct previously paid VAT, making it a tax on final consumption. This technique prevents tax pyramiding by allowing only final consumption to be taxed under the VAT.

• Excise Taxes

Excise taxes are levied on a specific commodity or activity in addition to a general consumption tax, and they make up a small and volatile portion of total tax revenue. Cigarettes, alcohol, soda, gasoline, and sports betting are all instances of excise taxes.

Excise taxes can be used to mitigate externalities as "sin" taxes. An externality is a negative side effect or consequence that is not accounted for in a product's price. Governments may, for example, impose a specific tax on cigarettes in order to reduce consumption and associated health-care expenses, or an additional price on carbon in order to reduce pollution.

Excise taxes can be used as user fees as well. The gas tax is a good example of this. The amount of petrol a driver buys is a good indicator of how much they contribute to traffic congestion and road wear and tear. Taxing this purchase effectively makes utilizing public highways more expensive.

c. Taxes on what you own

• Property Taxes

Property taxes are generally levied on immovable property such as land and buildings and are an important source of revenue for state and municipal governments across the United States.

Property taxes account for more than 30% of total state and local tax revenues and more than 70% of total local tax collections in the United States. Property taxes help local governments pay for things like schools, roads, police and fire departments, and emergency medical services.

While most people are aware of "real" property taxes on land and structures, many jurisdictions also levy "tangible personal property" (TPP) taxes on automobiles and equipment held by individuals and businesses.

• Tangible Personal Property (TPP) Taxes

Property that can be moved or touched, such as commercial equipment, machinery, inventories, furniture, and automobiles, is known as tangible personal property (TPP).

TPP taxes account up a small percentage of total state and local tax collections, but they are complicated, resulting in high compliance costs; they are nonneutral, favoring certain industries over others; and they influence investment decisions.

Many of the assets that firms employ to grow and become more productive, such as machinery and equipment, are burdened by TPP levies. TPP taxes impede new investment and have a negative influence on general economic growth by taking ownership of these assets more expensive. As of 2019, tangible personal property was taxed in 43 states.

• Estate and Inheritance Taxes

Estate and inheritance taxes are levied on the value of a person's assets at the time of their death. Inheritance taxes are paid by those who inherit property, rather than the estate itself, before assets are transferred to heirs. Both taxes are generally combined with a "gift tax" to prevent them from being avoided by transferring property before death.

• Wealth Taxes

Wealth taxes are imposed on an individual's net wealth (total assets less any debts outstanding) that exceeds a specified threshold each year.

An individual with $2.5 million in assets and $500,000 in debt, for example, would have a net worth of $2 million. If a wealth tax is applied to all wealth over $1 million, the individual would owe $50,000 in taxes under a 5% wealth tax.

*Disclaimer: This section is only for those interested in learning more about US taxes; it is not intended to provide advice or counseling.

The sales tax regulations of individual states are not regulated by the federal government. Each state is in charge of its own base sales tax. Retail purchases and certain services are usually subject to sales taxes.

As of 2022, the research which was taken place by Investopedia has discovered that five states have a 0.0005% sales tax: Alaska, Delaware, Montana, New Hampshire, and Oregon do not have state sales taxes, but each state has its own regulations on excise taxes, income taxes, and tourist taxes—as well as local sales taxes imposed by cities or municipalities.

• Alaska

Although Alaska has no sales tax, local governments have the authority to levy taxes on specific commodities and services. Juneau has a 5% sales tax, but Anchorage and Fairbanks don't. 3 With an 8.95 cents per gallon gas tax, it is the lowest in the country.

Alcoholic beverage distributors and wholesalers are subject to sales taxes, which are charged at a set rate.

Passengers on commercial vessels with overnight accommodations pay a $34.50 excise tax, and there are additional taxes on motor fuel for which consumers can get refunds.

• Delaware

Instead of a sales tax, Delaware levies a gross receipts tax on select enterprises. Excise taxes, which are levied at a set rate per gallon on items like gasoline and alcohol, are widely used in Delaware. A $2.10 tax is levied on each pack of cigarettes. The state has very high corporate income taxes and levies additional taxes on particular distributors of products and services, allowing for a 0% property tax and sales tax.

Delaware's 0% sales tax has attracted art dealers and collectors looking to avoid paying high sales taxes on paintings and other related items.

• Montana

The resort and local option tax, which applies to areas of Montana that attract a lot of tourists and house resorts, is a modest sales tax of up to 3%. A city must have a permanent population of fewer than 5,500 people to be eligible for this tax; the goal of the levy is to support tourist infrastructure. Whitefish, Red Lodge, Big Sky, and West Yellowstone are among these locales. 18 Sales taxes are commonly charged by lodging establishments and automobile rental firms. 1920

Local governments in Montana are not allowed to collect sales taxes, unlike in other states.

• New Hampshire

Restaurant prepared meals, short-term accommodation rentals, and automobile rentals are all subject to a 9% sales tax. A 7% tax on phone services and a $.75 per $100 tax on real estate sales are also in place.

Tobacco and electricity sales are subject to excise taxes.

Because of the statewide 0% sales tax, local governments are unable to register sales taxes. 2 When the buyer plans to resale the product, no taxes on these goods are required on B2B transactions. A timber tax of 10% of the value of the wood is imposed at the time of cutting, excepting cutting for personal use. New Hampshire's tax treatment is further favorable in that interest and dividend income are exempt from the state's income tax.

• Oregon

Certain goods may be subject to sales taxes in Oregon municipalities. Tobacco taxes and an excise tax on packed alcoholic beverages are both in place. Local governments can levy sales taxes, such as the 5% tax on prepared foods in Ashland. In comparison to other states, Oregon has a high personal income tax, although it does not tax intangible assets like stock accounts and bonds.

For entrepreneurs from all walks of life, doing business in the United States has numerous advantages. Here are some compelling benefits of establishing a business in the United States:

• The US reputation

If the consumers have to choose the same goods between the US and other countries, of course, they will choose products which are originated from the US because of the high quality and popularity of the US products are overtaken from hundreds of years around the world.

• Economic conditions are favorable.

Foreign investors can buy assets in the United States, particularly real estate, at lower prices than they can in their own country. Furthermore, the United States is still a wealthy country in comparison to many others, with a population of over 320 million people, many of whom enjoy shopping. If you're selling computer components, rain gutters, shoes, or any other product or service, you'll find a market in the United States.

• Incentives offered by federal, state, and local governments

Many states and some cities offer financial incentives to foreign investors who will establish their business in a specific location. Some incentives are in the form of tax credits and the country has recently lowered commercial real estate taxes for foreign investors. In addition, the U.S. government offers a myriad of assistance to U.S. businesses that will be available to you when you set up your U.S. business.

• Your non-resident-owned business in the United States provides you with the same benefits and obligations as a resident-owned business.

In the United States, all firms, whether foreign or domestically held, are treated equally. This allows you access to all applicable laws when buying a firm or moving funds. If there is ever a commercial conflict, it puts you on an equal footing with your opponent.

The benefits of starting a Business in the United States in alphabetical order

• New market opportunities

All 50 states want to improve their business climate, and many cities want you to invest in their community. You have nearly endless options for where to locate your company and can select a suitable geographical terrain and climate zone.

The United States has trade agreements with 20 countries, giving American manufacturers a marketing advantage. Your market expanded by 425 million people. When you consider the nearly 320 million Americans, you can realize how profitable your firm maybe.

• Professional workers are readily available.

There are about 800,000 international students studying in the United States, which has 4,000 institutions and universities. There are community colleges and technical schools dedicated to preparing students for various levels of the workforce. Hundreds of competent individuals will be waiting for the opportunity you can offer them when you start employing staff for your new firm, no matter what it is.

• Politically stable environment

The United States has a stable political environment, making it the "most attractive market for venture capital and private equity funding," according to Ernst & Young. The United States came in sixth overall for "ease of doing business" among all countries active in international trade, according to the World Bank.

• Goods circulation

If your company manufactures or sells items, the United States has efficient air, sea, rail, and highway access to the global market. Seven of the top ten cargo transportation airports are located in the United States.

• It's simple and fast administrative procedures and transparent legislation to start a business

This varies based on the legal status chosen, but in general, establishing a business in the United States, even for a non-resident, is rather simple and quick. Furthermore, the transparency laws for starting a business and the categories of clear taxation are particularly favorable to businesses in some states.

• The economy is steady and growing.

The United States is the top leading economy in 2021, providing a stable, reliable, and reassuring market for international investment. Furthermore, the dollar is a robust and well-regarded currency around the world.

• Advancements in technology

Access to superior technology, which the United States is recognized for, add to the country's attractiveness as a corporate destination. Many international investors are establishing businesses in the list of American states solely to gain access to cutting-edge technical advancements that will improve their business productivity and global communication.

• Intellectual property protection

The United States leads the globe in protecting intellectual property rights (IPR). The United States Patent and Trademark Office receives roughly one million patent and trademark applications each year. The office is dedicated to upholding the law and protecting you against infringement.

The benefits are on your side if you are a foreign national considering founding a business in the United States. Now is the moment to chase your dream and get down to business in the United States.

5.1 E-commerce market in the 50 United States list

According to Digitalcommerce360 data, consumers spent $870.78 billion online in 50 US States list retailers last year, up from $762.68 billion in 2020. While in-store sales increased, buyers did not revert to their pre-COVID-19 shopping habits and continued to purchase online with zeal.

E-commerce share of overall retail sales stayed steady year over year, with around $1 in every $5 spent coming from digital orders in both 2020 and 2021.

The eCommerce sales of the list of US States (in $billions of USD)

Following the surge in online expenditure caused by the pandemic in 2020, digital growth was expected to slow in 2021.

While the 14.2 percent increase in eCommerce in 2021 is less than half of the record-breaking 31.8 percent of retailers who registered in 2020, it is comparable to pre-pandemic growth levels. In reality, the median increase in internet sales in the five years leading up to the pandemic was 14.2 percent, with a 14.3 percent increase in 2019.

When comparing digital sales in 2021 to 2019, online expenditure increased by 50.5 percent. Despite the fact that last year's eCommerce scene appears to be significantly less remarkable than that of 2020, the fact that online merchants maintained gain and even grew is notable.

The eCommerce growth of the list of American States returns to pre-pandemic levels in 2021

According to a Digital Commerce 360 review of Commerce Department data, total retail sales from all channels grew at an all-time high of 14.0 percent year over year in 2021. Last year, total spending was $4.55 trillion, up from $3.99 trillion in 2020. That year-over-year increase was over double that of the 2020s 7.2 percent and still significantly greater than 1999, which came in second with 7.3 percent.

Retailers sold more in 2020 as consumers transferred money previously spent on vacation and entertainment to the purchase of actual products. However, consumer spending momentum, aided by inflation patterns, allowed 2021 to outperform the previous year.

Comparing growth: the eCommerce and total retail sales of the US States in alphabetical order from 2012 to 2021

In conclusion

• E-commerce sales reached $257.62 billion in Q4, up 9.2 percent from $235.96 billion the previous year. This is down from a year-over-year increase of 31.9 percent in the same quarter of 2020.

• Total retail sales increased to $1.27 trillion in Q4 from $1.12 trillion the previous year. The large increase of 13.0 percent is the highest rate for the fourth quarter ever recorded. In Q4 2020, sales across all channels climbed by 9.3%.

• In Q4, e-commerce accounted for 14.9 percent of overall retail spending growth, which is a quarter of the online sector's 60.1 percent share of overall growth in 2020.

5.2 Consumption trends of the young generation

According to Morgan Stanley's AlphaWise survey , retailers and clothing companies that focus on value are well-positioned. "While trends are less relevant to Gen Z, value is still a major factor in purchase decisions. According to the AlphaWise study, only 21% of Gen Z customers consider fashion trends to be extremely or somewhat essential, compared to 34% of Gen Y "soft lines retail research (clothing, footwear, and linens) director Kimberly Greenberger adds, "the survey findings." Also noteworthy is the fact that almost half of Gen Z respondents are more likely to choose the cheapest product over the branded one—a finding that is similar to previous studies "The Millennial Generation."

America’s youth spent an imbalanced share of wallets on consumption in 2017

5.3 Digital payment trends in the list of US states

The e-commerce business in the United States has a lot of room for expansion, especially through app-based sales. As online shopping and mobile e-commerce enable new methods to shop for and buy goods and services, e-commerce continues to revolutionize the retail environment in the United States, and consumer confidence remains relatively high. E-commerce is predicted to rise at double-digit rates every year until 2021.

The Consumer Spending of the 50 United States

According to the below statistics, as digital wallets expand, sales are driven by cards and credit.

• Card payments, the most common method of online payment, are expected to remain stable between now and 2023, while digital wallets gain in popularity. The popularity of cards may be explained by the fact that the United States is a country that prefers to buy now and pay later. Credit card usage outnumbers debit card usage, with 2.14 credit cards per capita compared to 1.48 debit cards per capita.

• Consumers, on the other hand, are often concerned about storing their credit card information with retailers for fear of identity theft.

• Smartphone adoption is really high. It has one of the highest rates in the world, at 84 percent. Accepting a diverse selection of smartphone-optimized payment solutions is becoming increasingly important as mobile commerce grows. When it comes to e-commerce apps, Apple's iOS and Android are approximately split 50:50.

The eCommerce payments trends and forecasted payment split of 50 United States list

Because setting up a business in the list of united states is very simple and quick so many companies have many services for establishing a business. One of the famous and high-quality services companies that has the best services of business establishment for all corporations is One IBC . Here are some of One IBC ‘s services: Corporate Services, Account Opening Consultancy, Accounting & Auditing, Private Client, Investments, Advisory Service, and E-commerce

To expand the customers’ approach, businesses that are established in the US should have an online payment gateway. So, how can we accept payment gateway for businesses in the US?

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About us

PayCEC was established in response to the growing need for businesses to accept online payments more quickly and easily. In the new media era, our payment flow has evolved to work seamlessly and effectively across all platforms and devices. We pride ourselves on combining superior technology with first-class customer service.

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PayCEC Team

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