Be Sales Tax Compliant

You go to the grocery to purchase an item in Texas. The price at the shelf says $10 but you get to the counter and your total is $10.80. The extra .80 is 8% sales tax. Much like the grocer, you may be required to collect sales tax on the products and services you offer your customers and clients. Every state’s sales tax laws and rates vary.For starters, sales tax is typically required in states where you have a physical presence or economic connection. Physical presence occurs when you have an office, brick and mortar store or inventory warehouse in a state, have an employee or contractor in a state, have an affiliate in a state or temporarily doing business in a status for a limited amount of time (eg. tradeshow or art fair). Economic connection is triggered when you have a certain amount of sales in a state.Many entreprenuers get into trouble as a result of past due or non existent sales tax payments. To remain compliant, you must research the service and products you will be selling to determine taxability; then research the rate. The sales tax should be collected from the purchaser then remitted to the state on a monthly, quarterly or annual basis according to the state’s regulations. Sales Tax nexus is complex but manageable with the correct research and tools.SCHEDULE CONSULTATION

Be Sales Tax Compliant

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