I am doing business in Texas, but I incorporated my business as a corporation in the state of Delaware. I heard a rumor that I don't owe sales taxes to the state of Delaware, if I am doing business outside of Delaware, but I don't know if this is true. Please help me, I am thankful for your advice.
2007-09-11 07:18:08 · 7 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
You pay to the state that you are physically located in, which in this case would be Texas.
Sales tax is a state issue, not an IRS issue, so calling the IRS won't do you any good. Sales tax may only be charged when you purchase something, but it is charged by the seller, which in this case would be you, so it is an issue for you. Texas sales tax is 6.25% with local areas also charging anywhere from 0 - 2% as well.
2007-09-11 07:28:56 · answer #1 · answered by Anonymous · 2⤊ 1⤋
Generally, sales tax is paid based on where you do business. For a manufacturer, if they were based in Delaware but shipped goods to Texas, then they would collect and pay Texas sales tax. However, the sales tax rules are very complicated. You'd be better off consulting with a state and local tax expert.
2007-09-11 07:27:16 · answer #2 · answered by Homeslice 4 · 1⤊ 1⤋
First of all, Delaware doesn't have a sales tax.
You charge and remit sales taxes to whatever state you have a nexus (ie physical presence). If you are in Texas, you would remit sales taxes to Texas based on the where the property changes hands. If you have a store and the customers come to you, you would only have to charge the one rate at that location.
2007-09-11 07:27:36 · answer #3 · answered by Wayne Z 7 · 1⤊ 1⤋
You need to register in Texas as a foreign corporation. Check the state website. Any CPA in Texas will provide you the information. Like attorneys, they don't bill you if you just call them and ask a simple question.
Then the question about sales tax. If you are doing business from Texas then you charge sales tax from the customers in Texas. But you just can't charge sales tax from anyone unless you register and get sales tax permit. Then you will get enough literature to tell you how much sales tax you charge and how you deposit it with the state.
2007-09-11 07:46:47 · answer #4 · answered by MukatA 6 · 2⤊ 1⤋
contact your tax advisor &/or the IRS. The accountant & advisor should have gone over that with you already when you incorporated.
2007-09-11 07:30:41 · answer #5 · answered by ricks 5 · 1⤊ 3⤋
I BELIEVE THE ONLY TIME YOU PAY SALES TAX IS WHEN YOU MAKE A PURCHASE SO IF NO PURCHASE IN THAT STATE NO TAX DUE
2007-09-11 07:25:06 · answer #6 · answered by Rick K 3 · 1⤊ 4⤋
Call the Internal Revenue Service and ask them.
2007-09-11 07:24:07 · answer #7 · answered by Anonymous · 1⤊ 5⤋