Hi my name is James sand I am the owner of a small street wear brand called
Kingdom Clothing co. I have been in business a little over year. I work on my
business part time because I also work a full time job / I am also a full
time student. My sales have been slowly but surly increasing throughout the
year and the brand is picking up steam. My question is how do I file my taxes
as a sole proprietorship the correct/ legal way since I am not currently
drawing any income off of my business. Thanks in advance.
sales tax question... We are a small business, basically cash only. We have a
small concession stand too. We just plan to incorporate taxes into price. ex.
hotdogs are 1.00 at the end of the day do i just total it all up and times it
by the taxes? say we made 100 bucks... 100 times0.0975? and that is the
amount I pay? also I pay tax at the store then make the hotdogs do i still
charge and pay tax? I have a sales tax number and will be paying on the 20th
and need toknow thanks
Michael J. Fleming | Window Shopper |
2/28/2013 - 6:42 pm
Show Replied Text…
sales tax question... We are a small business, basically cash only. We have a small concession stand too. We just plan to incorporate taxes into price. ex. hotdogs are 1.00 at the end of the day do i just total it all up and times it by the taxes? say we made 100 bucks... 100 times0.0975? and that is the amount I pay? also I pay tax at the store then make the hotdogs do i still charge and pay tax? I have a sales tax number and will be paying on the 20th and need toknow thanks
Hi jfarmerterp,
Different states have different rules but there are constants. If what you
are selling is taxable and it would appear that it is if your are paying tax
on your purchases than you should be registered and collecting sales tax. The
method you are choosing to use could cause you to be slightly over-paying.
The following numbers will not be exact, but for the purposes of illustrating
the tax incorporated into the price should suffice.
If you are taking the position that the taxes are incorporated into your
sales price than using your $1 example would mean that the cost of the hot
would be roughly 90.25 cents and the tax would be .0975 (not actual numbers).
What you are actually doing is saying that the cost of your hot dog is $1 and
then taking the tax out of your profits. However the method you are
suggesting is easier and the difference in tax will probably not amount to
much. Make sure you keep good records.
Most of your purchases at the store should be tax free. You should ask about
providing your supplier with a resale certificate. Another not of caution-
many jurisdictions have a prepared foods tax that is higher than the normal
sales tax. Don't get caught short.
JGabriel | Community Moderator |
2/5/2013 - 2:26 pm
Show Replied Text…
sales tax question... We are a small business, basically cash only. We have a small concession stand too. We just plan to incorporate taxes into price. ex. hotdogs are 1.00 at the end of the day do i just total it all up and times it by the taxes? say we made 100 bucks... 100 times0.0975? and that is the amount I pay? also I pay tax at the store then make the hotdogs do i still charge and pay tax? I have a sales tax number and will be paying on the 20th and need toknow thanks
jumping jacks | Window Shopper |
2/1/2013 - 3:16 am
Your recent post has been moved. Please review our Community Best Practices (http://www.sba.gov/community) for more information about how best to participate in our online discussions. Thank you.
jumping jacks | Window Shopper |
2/1/2013 - 3:16 am
Your recent post has been moved. Please review our Community Best Practices (http://www.sba.gov/community) for more information about how best to participate in our online discussions. Thank you.
jumping jacks | Window Shopper |
2/1/2013 - 3:16 am
Your recent post has been moved. Please review our Community Best Practices (http://www.sba.gov/community) for more information about how best to participate in our online discussions. Thank you.
jumping jacks | Window Shopper |
2/1/2013 - 3:16 am
My business is a very small janitorial service, has only been in process for
six months. What is the $amount that i could make with and spend on products
without filing taxes on my service
Michael J. Fleming | Window Shopper |
2/28/2013 - 6:45 pm
Show Replied Text…
My business is a very small janitorial service, has only been in process for six months. What is the $amount that i could make with and spend on products without filing taxes on my service
When it comes to sales tax many states exempt janitorial services. In other
words you may not have to collect sales tax from your customers. In this case
you would have to pay the taxes on your purchases that are used in the
performance of your services.
JGabriel | Community Moderator |
2/1/2013 - 11:33 am
Show Replied Text…
My business is a very small janitorial service, has only been in process for six months. What is the $amount that i could make with and spend on products without filing taxes on my service
Hi there, you must report all income for tax purposes even if it is small. Try talking to a mentor who could offer you specific guidance.
jtowbin | Community Moderator |
10/26/2012 - 12:41 pm
Hi James, A good place to start is in our Filing & Paying Taxes section. Here you will find information about your federal tax obligations and sole proprietorship. Good Luck
jfarmerterp | Window Shopper | 2/4/2013 - 8:09 pm
small concession stand too. We just plan to incorporate taxes into price. ex.
hotdogs are 1.00 at the end of the day do i just total it all up and times it
by the taxes? say we made 100 bucks... 100 times0.0975? and that is the
amount I pay? also I pay tax at the store then make the hotdogs do i still
charge and pay tax? I have a sales tax number and will be paying on the 20th
and need toknow thanks
Michael J. Fleming | Window Shopper | 2/28/2013 - 6:42 pm
Different states have different rules but there are constants. If what you
are selling is taxable and it would appear that it is if your are paying tax
on your purchases than you should be registered and collecting sales tax. The
method you are choosing to use could cause you to be slightly over-paying.
The following numbers will not be exact, but for the purposes of illustrating
the tax incorporated into the price should suffice.
If you are taking the position that the taxes are incorporated into your
sales price than using your $1 example would mean that the cost of the hot
would be roughly 90.25 cents and the tax would be .0975 (not actual numbers).
What you are actually doing is saying that the cost of your hot dog is $1 and
then taking the tax out of your profits. However the method you are
suggesting is easier and the difference in tax will probably not amount to
much. Make sure you keep good records.
Most of your purchases at the store should be tax free. You should ask about
providing your supplier with a resale certificate. Another not of caution-
many jurisdictions have a prepared foods tax that is higher than the normal
sales tax. Don't get caught short.
JGabriel | Community Moderator | 2/5/2013 - 2:26 pm
jumping jacks | Window Shopper | 2/1/2013 - 3:16 am
jumping jacks | Window Shopper | 2/1/2013 - 3:16 am
jumping jacks | Window Shopper | 2/1/2013 - 3:16 am
jumping jacks | Window Shopper | 2/1/2013 - 3:16 am
six months. What is the $amount that i could make with and spend on products
without filing taxes on my service
Michael J. Fleming | Window Shopper | 2/28/2013 - 6:45 pm
words you may not have to collect sales tax from your customers. In this case
you would have to pay the taxes on your purchases that are used in the
performance of your services.
JGabriel | Community Moderator | 2/1/2013 - 11:33 am
jtowbin | Community Moderator | 10/26/2012 - 12:41 pm
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