state taxes...

[brian_walsh7]

how does everybody go about filing state sales tax? do you need a state tax id

#? and then just mail them your total sales taxes quarterly from all the

weddings you get? and then just file federal income tax once at the end of the

year? is this another honesty policy, as they can't really determine the number

of jobs you get?

p.s. and i know a lot will say 'get an accountant'. but i'm small enough now

where i want to do this myself and know how it all works.

[kurt_holter]

You potentially open yourself up to a sea of misery if you don't find out how your specific state requires you to handle this. It varies considerably by the state. Chances are that your state has the info you will need on an official web site. That's the first place you need to check.

 

Do not take meeting your state's requirements lightly. I know of at least one individual who was audited by her state's sales tax bureau, and it wasn't pretty. She essentially went out of business because of a tremendous amount of back sales tax she had to pay.

[jim_marby]

Brian,

 

In MA., where I live, you have to register with the State Department of Revenue. If you're not incorporated and don't have a Federal tax I.D># you can just use your S.S.#.

 

After you have registered the state sends me the forms that I must mail in, along with the amount of sales tax, on a monthly basis.

 

I think in the initial registration process they ask for an estimate of you sales amount and based on that you may file quarterly if the estimates are below a certain amount.

 

As Kurt stated, don't that this lightly, do it right to avoid unnecessary problems and fines.

 

Jim Marby

[sandra_schaffer]

This is a State by State issue. Some States (like NY) are not simple and require quarterly estimated payments or monthly payments if you are over a threshold amount.

 

Look it up, get the forms and do it right.

 

Messing with the Tax man is NOT worth it, tho many do and many get caught.

[al_kaplan1]

You can check with your accountant or ask at the local Chamber of Commerce. Here in Florida it's either monthly or quarterly depending on how much business you're doing. Florida lets you keep a small percentage of collections to cover the expense involved. For me it wouldn't be enough to pay an accountant but it pays for the 39 cent stamp and some coffee at Starbucks.

[marv_stasak___southfield__]

No matter how small a business you have, you should talk to a tax accountant to help you set up your books, even if that's a single page spread sheet. That person will tell you about you about your state's sales tax procedures. Michigan, where I live, has a web site where you can get can register your business name, get a sales tax license,etc.. They even have a seminar each year on sales tax requirements. Taxes are not something with which you can roll the dice. They might not catch up to you for a number of years, but when they do, they can and will seize assets to collect back taxes.

[steve_newberry___northern_]

"is this another honesty policy, as they can't really determine the number of jobs you get?"

Unless your business is all cash there should be a bank record of all deposits and withdrawals. Not sure what you meant by "another honesty policy"? State sales tax is serious stuff and they can can close you down quicker than the IRS.

Anyway to answer your question we pay quarterly 8.25%

here in California to the State Board of Equalization. (BOE)

[larry_moore]

Not paying sales tax in NY can get one in a heap of trouble. You are required to collect tax to stay in business. If you don't or you screw up the state can deny you the right to collect the tax. This effectively puts you out of business because you are required to collect the tax. It is by the book "Catch 22".

 

It is irritating but not overwhelming. Tax payment is required only yearly if sales are under a certain amount. Quarterly if another and monthly if another. I doubt, unless it is large corperations, monthly would be required. I started out yearly and now am quarterly.

 

You fill out the form and you get the certificate. That is all. You will get a request for payment. If there has been no income you state so, otherwise you pay the amount calculated in the form.

 

It may be irritating but remember the amount collected isn't really yours and you are just forwarding it to the state.

 

Now in NY it is important to understand that only part is the states money. In Orange county 4 1/4 is the county, the other 4 goes to the state. So infact you are support your county and not just the state by collecting the moneys.

 

LJM

[suzanne carey]

Hi there. I live im MS and what I had to do was register with my Sales Tax Commission and pay a 350.00 fee. After that, I got an account with them and they sent me all the paper work I need.

 

At first I paid on a montly basis but my intake is so small, I do it part time, that I changed mine to quarterly payments.

 

Since you are collecting the sales tax from your clients all you have to do is set it aside and pay your sales tax with it when its time.

 

I agree with everyone else, I would not take it lightly. Its best to play it safe and do it the right way b/c you can get in a lot of trouble down the line.

 

Look up the State Tax Commission in your area and they can tell you all you need to know.

 

Hope that helps!

 

Suzanne

[warren_gold]

Brian,

 

Here in Texas you are required to file state taxes on a quaterly basis. I too am small so I am able to do the taxes myself online (they have online returns). In addition, because I use a lab service which hosts/sells my photos and what not I am paid as a 1099 which at this point has it's pro's and cons but certainly makes the process easier from the business tax perspective.

 

If you are doing part time to semi full time work you can easily manage your books yourself if you are adept, otherwise you will want a CPA. I use my CPA at the end of the year as "Home Based" business is often looked at twice even when filed perfectly.

 

On a side note, if you are utilizing a name which is a DBA for a propriotorship (sp?) make sure you see if your state and county have requirements for these such as "assumed name" etc. Also, consider a business bank account as it makes the process significantly easier if the state ever requests financial records, otherwise your wading through all your personal bank statements.

 

Good Luck,

 

W