I am opening a family home daycare (in my home) does anyone know if I am required to collect sales tax and/or pay use tax?
I registered my business as an LLC...
2006-10-01 10:07:28 · 4 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
Sale tax is a state tax not a federal tax on item deemed taxable in that state.
If you are selling item in a business that are taxable then yes you need to charge and collect and remit the sale tax in a quarterly or a monthly bases.
A sale tax is a trust fund just like income tax which means you may be audit and interest and penalty will be charge if you fail to remit the tax.
If you need to know the rules on state tax look up on the following website in the state you are conducting a business.
http://www.taxadmin.org/fta/link/forms.html
2006-10-02 04:11:50 · answer #1 · answered by Kenshin 5 · 0⤊ 0⤋
Some states charge sales tax on services. Some states do not. The form of the business (LLC, sole proprietorship, etc) is not an issue for sales tax.
2006-10-01 17:16:04 · answer #2 · answered by STEVEN F 7 · 1⤊ 0⤋
There are alot of requirements for home based businesses that vary from city to city and from state to state. Before you start any business, make sure you check with your city, county, state and federal goverment for not only the tax requirements but the licenses to provide child care in your home. Don't forget to check with your home or renter's insurance to insure you get an appropriate business rider to protect yourself against lawsuits for injury, theft, etc. When it comes to children, you may need some form of certification and health inspections of your home.
2006-10-01 17:24:33 · answer #3 · answered by Anonymous · 1⤊ 0⤋
It depends on your state. Also, some states require specific certification for daycare. Make sure you aren't breaking too many laws.
2006-10-01 20:34:53 · answer #4 · answered by misslabeled 7 · 0⤊ 1⤋