I am an amatuer photographer who lives in Texas. I want to sell my prints online and needed to know about tax laws. I dont have any tax id or anything. I am clueless on whether or not I need to get a tax id or if I need to charge my customers taxes.
2006-11-21 06:07:19 · 5 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
Yes.....
You will need a tax ID. Taxes must only be charged on sales made in Texas. If all items are shipped from your home then the tax rate will be the same as it is for your locale. If the items are sent from another location then the tax rate will apply to the area in which the buyer is located.
2006-11-21 06:09:42 · answer #1 · answered by Letsee 4 · 0⤊ 0⤋
Sales taxes are determined by state law. The form of the business has no effect on taxes. For federal tax purposes, you use you SSN as a tax id unless you have employees. For state taxes, it depends on the state in question. In most cases, you would have to collect sales tax from customers in any state where your business has a physical presence. Customers in other states would be responsible to pay their own taxes. You should consult a CPA and/or an attorney to make sure you understand ALL the laws that apply to your business.
2006-11-21 12:25:58 · answer #2 · answered by STEVEN F 7 · 0⤊ 0⤋
You can use your SS# as your tax ID, however you may want to use an LLC or something similar to limit your litigation exposure (not so much a tax issue as a legal issue). However, you would want to check with a local CPA to discuss sales taxes on goods and services in your area.
If you are obligated to collect and remit the taxes and don't you are on the hook for the liability. If you collect and remit, your client pays the tax not you. Not properly registering and filing could cost you your business in the long run. Spend the extra $$'s upfront to make sure everything is set up properly. It is something you should be able to maintain yourself after getting some upfront help.
Good luck with your business.
2006-11-21 07:29:03 · answer #3 · answered by BHWMST 3 · 0⤊ 0⤋
You do not need a Federal Tax ID number unless you have employees. You can use your Social Security #. When you file your federal income taxes, you'll fill out a Schedule C.
You will need to collect sales tax and file forms and pay the tax to the State of Texas.
2006-11-21 07:04:27 · answer #4 · answered by Susan S 2 · 1⤊ 0⤋
Go find a CPA that specializes in small business. Spend the money to do it right upfront, or you could end up in deep trouble later if you aren't paying the taxes you are supposed to.
2006-11-21 06:12:27 · answer #5 · answered by Anonymous · 0⤊ 0⤋