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Business Sales Tax on Intangible Goods

Are you an LLC with clients outside the state you reside in? If yes, you may have to pay sales tax in every state you conduct business.

In a previous episode, we talked about sales tax on tangible goods and today we transition into what the law says for businesses that don’t sell physical goods.

We continue our conversation with Derrick Winke of Wink Tax Services, a firm located in Troy, just outside of Detroit, Michigan. In his line of work, Derrick focuses primarily on tax returns for individuals and small businesses.

Click here to find more information on our website.

Business Sales Tax – Key Points

  • Not all states apply sales tax to digital products and services.
  • Whether or not you collect sales tax on intangible goods is not always affected by where you choose to operate from.
  • Understanding the legal concept of Nexus when it comes to doing business.
  • There is always the possibility that the State will eventually go after third-party record-keepers, to require them to report information.
  • If you are an LLC outside of California and have clients in California, you may be required to pay taxes on the profits you make on those clients.
  • In recent years, there has been a push by the IRS requiring that 1099s be issued to more businesses.
  • The requirement for form 1099 is different for corporations, LLCs, and LLPs.
  • Cutting corners today could cost you a fortune in future.
  • Some useful questions to ask your CPA or Bookkeeper before you hire them.
  • Most businesses fail because of bad record-keeping.

Invest in the next 15 minutes to find out more

Links

If you have not checked out all of our free resources available to you. Click here for our site.

Here are some of our featured free resources.

Collecting Sales Tax – Does your business need to do it?

Not every business is super excited about collecting sales tax but if you sell online or are wondering about your obligations as a seller, this episode is a must-listen.

Derrick Winke from Wink Tax Services is with us once more, and he’ll be helping us get acquainted with the rules regarding sales tax. In his line of work, Derrick focuses primarily on tax returns for individuals and small businesses. Wink Tax Services, is located in Troy, just outside of Detroit, Michigan, and has clients on almost every continent as well as from most states.

Click here to find more information on our website.

Collecting sales Tax – Key Points

  • What the law says about collecting sales tax.
  • What happens if you manufacture products and then sell online.
  • Understanding how you are affected by your physical location and your client’s physical location.
  • Getting a sales tax license.
  • How often do you need to file your returns?
  • When your warehouse is not in the state where you operate from.
  • Are you liable to pay sales tax if you sell on Amazon?
  • The rules for startup companies.
  • If you manufacture a product overseas, what are the rules?
  • It is possible to save money by deducting certain items.
  • When you have a license, you don’t always have to pay sales tax on items that you purchase locally.
  • Some vendors will give you a wholesale account and sell to you without sales tax.
  • Good bookkeeping and record keeping are very important.

We’re sure you will get a lot out of this episode.

Links

If you have not checked out all of our free resources available to you. Click here for our site.

Here are some of our featured free resources.