I want to tackle a question that plagues many business owners: Do I need to collect and remit sales tax? This can be a complex question depending on your type of business, how you operate, and who your customers are but by the end of the episode, hopefully you;ll have a bit more clarity.

 

We'll discuss the factors that determine if sales tax applies to your business or services, understanding the concept of nexus, and how to determine which states require you to charge sales tax. 

 

Lastly, I'll touch the importance of accurately tracking sales tax through your business and why it is crucial to do so. Tune in to gain clarity on these sales tax considerations for your business.

 

What you’ll hear in this episode:

[0:50] Many business owners are unsure whether they need to collect and remit sales tax. This episode should help you answer this question.

[2:23] How do you know if sales tax applies to your business or services?

[3:12] Identifying what states you may be subject to income tax based on your physical location, sales locations, and inventory locations. Understanding the term “Nexus”.

[5:15] Finding out which states that you have obtained nexus charge sales tax on your product or service.

[7:00] In a digital business, how do you figure out where your clients are purchasing from?

[9:35] How does sales tax flow through your business and why is it so important to track this accurately?

 

Tax Jar Link: https://partners.taxjar.com/english/directory/partner/1402654/fitnancial-solutions

 

Related Episodes:

How to Pay Yourself Based on Your Business Structure

What is a W-9 and Who Needs One?

Are GoFundMe Donations Deductible?

 

Resources:

* Find everything you need at https://www.keepwhatyouearn.com

* Questions about this episode? Text me!: https://my.community.com/shannonweinsteincpa

* Chat about this episode in the Keep What You Earn Community – http://keepwhatyouearn.circle.so/

* Hire us: https://www.fitnancialsolutions.com/accounting

* See how much you can save with an S Corp: https://www.keepwhatyouearn.com/keep-what-you-earn-s-corp-calculator

* Find me on IG https://www.instagram.com/shannonkweinstein/

* Meet me face-to-face on YouTube: https://www.youtube.com/channel/UCMlIuZsrllp1Uc_MlhriLvQ

* Featured in Yahoo Finance! Read more here: https://finance.yahoo.com/news/10-bookkeepers-accountants-watch-2021-113800161.html

 

The information contained in this podcast is intended for educational purposes only and is not individual tax advice. Please consult a qualified professional before implementing anything you learn.