Tax & Business Services |
|
Sales Tax If your small business sells products or services, chances are you need to collect sales tax. There are certain exceptions for wholesalers or retailers, or tax-exempt organizations such as non-profits or schools, but if you plan to sell products or services to anyone else, you'll most likely be required to collect sales tax--and remit the collected taxes to your state taxing agency. State sales tax State sales tax rates vary from state to state, and some states don't even require that you charge and collect the tax. Be sure you understand your state's regulations. And if you sell products all over the U.S., it may be wise to collect sales tax in every state in which you do business. Sales tax permits Generally, if you sell products, you'll have to get a sales tax license or permit from the Sales Tax Franchise Board in the state's revenue department. Operating a small business and selling products without applying for this license or permit is a serious violation. Local sales tax Don't forget: Some cities and counties require that you charge a local sales tax on certain products and services. Big-ticket items like boats and cars are usually exempt from this tax, but be sure you check with your local city and county so you are clear on the sales tax you're responsible for collecting. Internet businesses Most Internet-based businesses can sell goods without having to charge or collect sales tax. However, if you do business in a state where you have a "physical presence," such as an office, you generally have to collect sales tax from customers in that state. |
Ask a Small Business Expert
Not finding the answers you need? Use our online form to
contact a tax and business expert.