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Topic: Sales Tax (Read 28019 times)
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Serendipity
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Sales Tax
«
on:
March 02, 2004 10:40:29 AM »
Okay, I know that these rules will vary by state, but I have a couple of general questions:
1. Is there a minimum gross sales amount before you are required to pay sales tax for your business?
2. If I've already paid sales tax on the materials used to make my products, does that affect the amount of sales tax I need to collect?
3. Once I get my sales tax ID, can I use it at regular stores like Hobby Lobby so that I don't have to pay sales tax on my materials?
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Re:Sales Tax
«
Reply #1 on:
March 02, 2004 08:21:43 PM »
I'm no expert--still learning myself, but if you know an accountant, that would probably be the best person to ask--at least it was for me. She answered all my questions. Like you said, it does vary from state to state, but I know that in Georgia I have to collect sales tax on any sale no matter what gross sales amount I've reached. If I opened up shop today, sold something for $30 dollars, I'd have to collect 7% tax and report the total sales and tax ammount monthly. Reporting monthly is a big pain, and I'm not sure if other people actually do it that way or what it's like in other states, but that's what the paperwork I have says to do. And as far as I know, the fact that you paid sales tax to buy supplies doesn't have anything to do with you collecting sales tax. For the last question, I think your tax ID only helps you in the wholesale arena. Hobby Lobby is retail only as far as I know, so you'd still be subject to sales tax and you wouldn't get a discounted rate, but you can sometimes use your tax ID to set up wholesale reationships or attend shows like the mart as a buyer.
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Re:Sales Tax
«
Reply #2 on:
March 03, 2004 07:41:34 AM »
i could be totally wrong since i personally haven't looked into yet, but i was told you don't pay until you sell $500. in florida anyways.
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Re:Sales Tax
«
Reply #3 on:
March 03, 2004 03:56:55 PM »
simply, are you thinking of income tax?
I think with sales tax in most states you're required to collect it (from in-state customers) and pay it no matter the amount you sell (in fact you usually have to file a form even if you don't collect any, once you've got your tax info filed). But the way you go about paying it differs from state to state. For example, here in MA, I only have to pay it once a year b/c I generally don't collect very much (most of my customers are not in MA).
As for retail stores, I've heard that you can fill out a form and they'll keep your tax # on file so you don't have to pay the sales tax when you come in (I guess you have to ask them to look it up for you each time you're at the register?).
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Re:Sales Tax
«
Reply #4 on:
March 03, 2004 07:14:19 PM »
i coulda sworn it was sales tax...but i'm kinda flighty, so it might not be
i haven't gotten around to checking that out for myself yet.
«
Last Edit: March 03, 2004 07:14:52 PM by simply
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Re:Sales Tax
«
Reply #5 on:
March 04, 2004 10:52:38 AM »
Thanks for all of your responses -- I also talked to some other people and got some answers:
- My parents' business accountant says that you have to collect sales tax no matter how little you sell.
-Hobby Lobby's accounting department says that I can just bring in a copy of my tax (resale)certificate when I shop at their store and I won't have to pay sales tax on items that will be used in the products that I sell.
-My mom suggested that I just make a bunch of copies of the certificate and carry them with me so that the employees don't have to go look up my info every time I buy supplies.
I hope this info helps some other people, too!
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Re:Sales Tax
«
Reply #6 on:
March 10, 2004 01:28:06 PM »
Wow, the employees at your local Hobby Lobby must be on the ball if they actually know what you're talking about with business tax. At my local HL, they are all minimum wage zombies.
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Re:Sales Tax
«
Reply #7 on:
March 10, 2004 01:56:39 PM »
One more thing about a sales tax number - if you plan on selling at craft shows some shows require you have a number.
Also, there is always a potential that the IRS could show up and ask to see your sales tax number!
I would check out a book called "Jewelry Making for Fun & Profit : Make Money Doing What You Love" Or something similar.
I have found these books helped me sift through all of the info.
Morgan
P.S. - technically selling on the web you only have to collect sales tax from people who live in your state. Any good checkout software or PayPal handles that part for you.
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Re:Sales Tax
«
Reply #8 on:
March 10, 2004 02:25:48 PM »
I didn't actually talk to the employees at my local Hobby Lobby, but I emailed their corporate accounting department (there's a link on the HL website). I was too embarassed to ask in person because I barely know what I'm talking about!
BTW, I mailed in the application for my sales tax id today -- Yippee!
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Re:Sales Tax
«
Reply #9 on:
March 12, 2004 01:18:22 PM »
Quote from: Serendipity on March 04, 2004 10:52:38 AM
-Hobby Lobby's accounting department says that I can just bring in a copy of my tax (resale)certificate when I shop at their store and I won't have to pay sales tax on items that will be used in the products that I sell.
Yes, I do this at Joann's too. They just type in my number in the register and I don't pay sales tax on items I use to make things I sell.
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