I am a consultant living in PA but receiving 1099's from various out of state companies for work that I do for them at various sites in and out of the state. Should I set my business up as a sole proprietorship or LLC? Do I have to pay any sales tax? Any help that is PA specific would be appreciated.
Generally B2B sales are not subject to sales tax but you should check with your state's department of revenue and with the states you are selling into just to be safe.
Your form of business (i.e. sole proprietorship, partnership, LLC) determines which income tax return form you have to file. The federal government does not recognize LLC as a classification for tax purposes, so LLCs must file as a corporation, partnership or sole proprietorship tax return.
You can read more about LLCs and sole proprietorships on Business.gov
fomocolovesu | Window Shopper | 8/21/2010 - 6:23 pm
jbeidle | Contributor | 8/18/2010 - 11:12 am
NicoleD | Former Moderator | 8/17/2010 - 6:53 am
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