Thursday, May 28, 2020
Should I Charge Sales Tax on My Resume Writing Service?
Should I Charge Sales Tax on My Resume Writing Service?Many people ask me if they should charge sales tax on their resume writing service. My answer is that there is no rule about charging sales tax on your job. It depends on the person, but mostly on the type of business that you are running.When I first started my small home-based business, I did not charge any sales tax. I really didn't know much about it so I just took the word of the person who took my job when he told me that we could not charge sales tax because we were in a state where there was no income tax. He also said that we had to be very careful because the Internal Revenue Service can take our business away, so we better be very careful.Well, I was wrong on all counts. The IRS was very friendly to my small business and they allowed us to continue working. We could not charge sales tax because I had a tax ID number on file and we did not collect from consumers, but we still received our money. In fact, we received mor e money than before because the state of New Hampshire even offered us incentives that helped us sell more of our products and services.I have no problem with charging sales tax on my resume writing service. I will make sure that I charge the correct amount and I will not charge the lowest amount of sales tax that the government will allow. We cannot make the salespeople at the government any better than they already are, so why would we want to make them worse?If you are in a state where there is no sales tax, then I suggest that you let the salespeople collect the sales tax. You can use the money that you earn from your sales to pay for your taxes.I guess that I need to add one word to the rule that I gave above: Consult with the government first. If you are in a state where sales tax is charged, then it would be easier for you to collect taxes than it would be to try to collect sales tax at the federal level. It would also be easier for you to collect taxes from consumers than it would be to try to collect it at the state level.What if I am in a state where sales tax is not charged and I am trying to get a new job in that state? It is best to simply charge the minimum sales tax amount and no more.My final thoughts are that I do not believe in charging sales tax on my resume writing service or in my own business. I recommend that you charge the sales tax as you would charge it to a consumer and avoid the headaches of the IRS.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.