Im trying to make my business legit. I run an auto detailing business and it is a services only business. I havent been charging tax because I was under the assumption that I only needed to if I was selling goods. But someone mentioned to me that I should be charging tax for my services. Is this true? If so, where can I find out what the rates are ? (if seperate from the retail taxes). Sorry, this is a horrible question, but I need to know. I dont have an accountant to talk with about this.. not yet any way.
Thanks
2006-11-21 13:25:50 · 4 answers · asked by Sam S 1 in Business & Finance ➔ Taxes ➔ United States
I would pay a accountant to advise you. Generally detailing services are subject to sales tax and you will need guidance on the best way to get compliant with the state. I would not suggest doing this on your own.
Also go to a CPA not H&R Block or same.
2006-11-21 23:03:30 · answer #1 · answered by waggy_33 6 · 0⤊ 0⤋
What is taxable (sales tax) varies by state, so whether services are taxable depends on the state you're in. Check with your state website - they might have the information. If not, contact your state's department of revenue - there should be contact info on the state website. If the services you provide are taxable, they'll tell you what you need to do to set up to collect sales tax, and when/how to remit it.
Depending on where you live, there might also be local sales tax.
2006-11-21 13:49:33 · answer #2 · answered by Judy 7 · 1⤊ 0⤋
Texas doesn't charge tax on services. I don't know where you are, but I would read the info at the IRS website to be sure that you are legal.
2006-11-21 13:36:27 · answer #3 · answered by Justsyd 7 · 0⤊ 0⤋
I would ask my state representative for the answer to this question. Make sure you get it in writing...
2006-11-21 13:30:05 · answer #4 · answered by Patches6 5 · 0⤊ 0⤋