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taxes
so im licensed and insured and mobile, should i be charging tax on my services? do you guys charge tax?
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Super Member
Re: taxes
Originally Posted by ride5150
so im licensed and insured and mobile, should i be charging tax on my services? do you guys charge tax?
Depends on where you live. Some states require sales tax collection on services, some do not.
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Re: taxes
Originally Posted by ObsessiveAutoDetail
Depends on where you live. Some states require sales tax collection on services, some do not.
do you know where i could find the info for this?
wait so how does it usually work, i have to give the state some money after each sale? or do i pay it all when i do my taxes?
i just dont want to be doing my taxes later and have to pay out of my pocket.
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Super Member
Re: taxes
It does depend. Unless you are selling a product then you wouldn't charge Sales tax, but there may be a Use tax. You would want to ask your accountant to know for sure. It varies state by state and the law is constantly changing.
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Super Member
Re: taxes
Originally Posted by ride5150
do you know where i could find the info for this?
wait so how does it usually work, i have to give the state some money after each sale? or do i pay it all when i do my taxes?
i just dont want to be doing my taxes later and have to pay out of my pocket.
You will most certainly be paying out of pocket either way. I would set aside at least 40-50 percent of what you earn to pay when tax time rolls around unless you have an accountant to help you save. And that isn't even counting if you have to calculate use tax for your state. You are going to want an accountant to help you deduct as many of your expenses as possible so the amount you have to pay is as low as possible. It is just another one of those costs of doing business.
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Super Member
Re: taxes
I live in Michigan. I have to collect sales tax on any merchandise I would sell, but not on services (yet). You'll want to contact a CPA or at least familiarize yourself with your state's sales and use tax requirements. This information can usually be found on your State's official website.
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Re: taxes
theres another thing im not really clear about, i have a business license that i got from my city hall, am i LLC?
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Super Member
Re: taxes
In Wisconsin, services are taxed as well. To find out, contact your states department of revenue.
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Super Member
Re: taxes
Originally Posted by ride5150
theres another thing im not really clear about, i have a business license that i got from my city hall, am i LLC?
I'm not sure if there are any qualified CPA's or business lawyers on here, I am not. You seem to have quite a few questions and as a new business owner, you should.
In order to make certain you do not miss anything which might leave you exposed to tax or other liabilities, I would recommend you seek the advice of a certified individual (CPA or lawyer) in your city or town that is familiar with your local tax and business codes and regulations.
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Super Member
Re: taxes
Originally Posted by ride5150
theres another thing im not really clear about, i have a business license that i got from my city hall, am i LLC?
what did you apply for? LLC, Corporation, D.B.A.?
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