Do I need to register my business?

Guest

I run a sole-proprietorship entirely from my home selling software
internationally. My state says you are required to register if you are
liable for sales tax. I dont charge any sales tax. Should I register,
what are the benefits?

jmk · Guest

<veg_all@yahoo.com> wrote in message
news:11oqclpfthnlp67@news.supernews.com...
Quote:
I run a sole-proprietorship entirely from my home selling software
internationally. My state says you are required to register if you are
liable for sales tax. I dont charge any sales tax. Should I register,
what are the benefits?

Not a good idea to ask here since things are different from one state to
another.

John A. Weeks III · Guest

In article <11oqclpfthnlp67@news.supernews.com>, veg_all@yahoo.com
wrote:

Quote: I run a sole-proprietorship entirely from my home selling software
internationally. My state says you are required to register if you are
liable for sales tax. I dont charge any sales tax. Should I register,
what are the benefits?

I think you need to learn more about sales tax. Just because
you don't charge tax doesn't mean that tax is not due. For
example, if you sell to an end user in your state, that is a
taxable event. If you sell to a distributor for resale, tax
might not be due, but you most likely have to record their tax
ID with that sale.

For a sole proprietorship, the only benefit of registration is
the ability to use a business name that does not include your
full name. For example, Joe Smith Drapery would not need to
be registered as long as you are Joe Smith. But Speedy Oil
And Lube would need to be registered since there is no owners
name in the business name. Once you register, you can get a
bank account for the business. At the very least, you should
never mix business and personal finances together.

-john-

--
======================================================================
John A. Weeks III 952-432-2708 john@johnweeks.com
Newave Communications http://www.johnweeks.com
======================================================================

Todd Brill · Guest

veg_all@yahoo.com wrote:
Quote: I run a sole-proprietorship entirely from my home selling software
internationally. My state says you are required to register if you are
liable for sales tax. I dont charge any sales tax. Should I register,
what are the benefits?

The only other reason you might want to think about it is if you are
possibly going to use the business name in the future. Having the name
in the registry (at least in my jurisdiction) makes it easier to
incorporate later and use the same business name (with an 'LTD' or
'Corp' or such at the end of it).

--
Cheers,

Todd Brill
http://www.toddbrill.net
http://www.1osc.com
"Self-reliance is the only road to true freedom,
and being one's own person is its ultimate reward."
-Patricia Sampson

Wayne Sallee · Guest

Also having a sales tax licence, will alow you to buy from
dealers in your state for resale without having to pay
sales tax for the items you are reselling.

Wayne Sallee
Wayne's Pets
Wayne@WaynesPets.com

Todd Brill wrote on 11/30/2005 10:17 AM:
Quote: veg_all@yahoo.com wrote:

I run a sole-proprietorship entirely from my home selling software
internationally. My state says you are required to register if you are
liable for sales tax. I dont charge any sales tax. Should I register,
what are the benefits?

The only other reason you might want to think about it is if you are
possibly going to use the business name in the future. Having the name
in the registry (at least in my jurisdiction) makes it easier to
incorporate later and use the same business name (with an 'LTD' or
'Corp' or such at the end of it).

Victor Roberts · Guest

On Wed, 30 Nov 2005 05:03:53 -0000, veg_all@yahoo.com wrote:

Quote:
I run a sole-proprietorship entirely from my home selling software
internationally. My state says you are required to register if you are
liable for sales tax. I dont charge any sales tax. Should I register,
what are the benefits?

You should probably post this in misc.taxes.moderated where
you can get good advice from professionals, but let me give
you my informal spin.

You say you don't charge sales tax, but that does not mean
you are not liable for sales tax. I would go back to the
site where you learned that you are required to register if
you are liable for sale tax and find out if you are liable.

I strongly suspect that if you make any sales to individuals
or companies within your own state you are liable for sales
tax. As others have stated, you may also have reporting
requirements if you sell to resellers within your own state
or even to people outside your state - even though you
usually have no obligation to collect sales tax from them.

So, the benefit of registering is that it will avoid a large
fine, and perhaps jail time, if and when the state tax
authorities find out you have not complied with their
regulations.

--
Vic Roberts
Replace xxx with vdr in e-mail address.

Guest · Guest

John A. Weeks III wrote:

Quote: I think you need to learn more about sales tax. Just because
you don't charge tax doesn't mean that tax is not due. For
example, if you sell to an end user in your state, that is a
taxable event.

Is sales tax still due if I am selling a service and not a physical
product? I actually do have some clients in my state so should I
include sales tax in my contract or just have it already factored into
the price?

Wayne Sallee · Guest

No, there's no sales tax for labor. There is tax for labor
if it involves installing an item that you are selling and
installing. Diffeent states do sales tax differently, so
it's best to double check with your state, but that should
be the same with your state.

Wayne Sallee
Wayne's Pets
Wayne@WaynesPets.com

veg_all@yahoo.com wrote on 12/1/2005 10:38 AM:
Quote: John A. Weeks III wrote:

I think you need to learn more about sales tax. Just because
you don't charge tax doesn't mean that tax is not due. For
example, if you sell to an end user in your state, that is a
taxable event.

Is sales tax still due if I am selling a service and not a physical
product? I actually do have some clients in my state so should I
include sales tax in my contract or just have it already factored into
the price?

Victor Roberts · Guest

On Thu, 01 Dec 2005 15:38:21 -0000, veg_all@yahoo.com wrote:

Quote:
John A. Weeks III wrote:

I think you need to learn more about sales tax. Just because
you don't charge tax doesn't mean that tax is not due. For
example, if you sell to an end user in your state, that is a
taxable event.

Is sales tax still due if I am selling a service and not a physical
product? I actually do have some clients in my state so should I
include sales tax in my contract or just have it already factored into
the price?

I am a consultant located in New York and sell only
services. These services are not subject to sales tax, but
I'm not sure about the laws in other states.

However, in your first message you stated you were selling
software. Now you state you are selling services. Each would
have a different tax treatment in NY.

--
Vic Roberts
Replace xxx with vdr in e-mail address.

Guest · Guest

veg_all@yahoo.com wrote:
Quote: John A. Weeks III wrote:

I think you need to learn more about sales tax. Just because
you don't charge tax doesn't mean that tax is not due. For
example, if you sell to an end user in your state, that is a
taxable event.

Is sales tax still due if I am selling a service and not a physical
product? I actually do have some clients in my state so should I
include sales tax in my contract or just have it already factored into
the price?

may depend on where you are. Here (I'm in Hawaii) you do.
Hawaii law says you can pick and choose whether to include
it in the price or add it on. I include it, most people/stores
add it on. You'll also have to check whether there's a different
tax rate for retail and wholesale sales (here wholesale is 0.5%,
retail is 4%, so it's quite a difference).

Maren
Tropical seeds - Job's Tears Jewelry - Plants & Lilikoi
http://www.jach.hawaii.edu/~maren/palms_etc/

Guest · Guest

Victor Roberts wrote:

Quote: However, in your first message you stated you were selling
software. Now you state you are selling services. Each would
have a different tax treatment in NY.

Actually I am selling software services., i.e web hosting, web software
etc. So all my charges are for hosting, support , development and
maintenance. Ill double check with my state.

Thanks!

Wayne Sallee · Guest

m.purves@jach.hawaii.edu wrote on 12/1/2005 9:31 PM:
Quote: veg_all@yahoo.com wrote:
John A. Weeks III wrote:
I think you need to learn more about sales tax. Just because
you don't charge tax doesn't mean that tax is not due. For
example, if you sell to an end user in your state, that is a
taxable event.

Is sales tax still due if I am selling a service and not a physical
product? I actually do have some clients in my state so should I
include sales tax in my contract or just have it already factored into
the price?

may depend on where you are. Here (I'm in Hawaii) you do.
Hawaii law says you can pick and choose whether to include
it in the price or add it on. I include it, most people/stores
add it on. You'll also have to check whether there's a different
tax rate for retail and wholesale sales (here wholesale is 0.5%,
retail is 4%, so it's quite a difference).

So, when you buy from a wholesaler for resale, you have to
pay sales tax?

Wayne Sallee
Wayne's Pets
Wayne@WaynesPets.com

Todd Brill · Guest

Wayne Sallee wrote:
Quote: m.purves@jach.hawaii.edu wrote on 12/1/2005 9:31 PM:

veg_all@yahoo.com wrote:

John A. Weeks III wrote:

I think you need to learn more about sales tax. Just because
you don't charge tax doesn't mean that tax is not due. For
example, if you sell to an end user in your state, that is a
taxable event.

Is sales tax still due if I am selling a service and not a physical
product? I actually do have some clients in my state so should I
include sales tax in my contract or just have it already factored into
the price?

may depend on where you are. Here (I'm in Hawaii) you do.
Hawaii law says you can pick and choose whether to include
it in the price or add it on. I include it, most people/stores
add it on. You'll also have to check whether there's a different
tax rate for retail and wholesale sales (here wholesale is 0.5%,
retail is 4%, so it's quite a difference).

So, when you buy from a wholesaler for resale, you have to
pay sales tax?

Wayne Sallee
Wayne's Pets
Wayne@WaynesPets.com

For any of us business types in Canada, GST is chargeable on Goods and
Services as the name indicates. Even if the good or service is for
resale, the end user must claim it against their income tax each year
but pay it up front.

--
Cheers,

Todd Brill
http://www.toddbrill.net
http://www.1osc.com
"Self-reliance is the only road to true freedom,
and being one's own person is its ultimate reward."
-Patricia Sampson