I would like to start selling things in exchange for bitcoins. The problem is that I live in California, and we have a sales tax here. I was wondering if anybody knew how to deal with that. (If the government doesn't yet recognize Bitcoins as currency, do I still have to pay taxes to them for sales that I make?)
I think it depends on whether you tell government on what amount of things you have and how you do business. If you do it from legal entity, then you have to pay taxes as you tell government what and when you had sell this or that thing. But if you have a small internet shop, than you don't have nothing to do with taxes.