Thursday, October 10, 2019

Collecting sales tax

This is a sponsored post for Diamond Links. 

When you are owning your own business, it’s extremely important to keep great records of your sales, assets, and your losses. You need to have them to track your growth and improve business. Taxes when you own a business can be a bit tricky. Someone said, “the only guarantees in life is death and taxes.” That is a very true statement. Everyone has to pay their taxes on everything from their income to sales tax. Unless you live in a state doesn’t have sales tax, you have to collect, report and pay sales tax to the government. The sales tax that you collect depends on where you are located. Some places also have local sales tax which depends on where you are located too. It’s not a very common thing, but some places to have it.  It also may depend on if you do online sales. It’s a good idea to have a basic idea of sales tax from online sales.  If you have an actual storefront you will have to collect sales tax. The Supreme Court recently ruled on the South Dakota Tax Nexus Case. 

There’s also certain things that are tax free and again that depends on where you live and what the items are. Some states have tax exempt items like basic needs and some have reduced tax on those items. Tax laws are really an enigma in my opinion. Thankfully, I have a friend who used to work for the IRS. I consider myself very lucky. It would be hard to know every rule on your own. You would have to do this for every item you sell. If you are a successful business with lots of sales, your taxes can become pretty complicated. You must make sure you are in compliance with all the tax laws. You don’t want to make Uncle Sam mad. He’s not very forgiving. You really don’t want to go through the audit process. Being audited is a complete nightmare. You will have the possibility of fines and fees on top of what you owe. Besides, it’s the right thing to do. In my opinion, doing the right thing is the best thing. Pay your taxes because there could be serious consequences. You could face liens. Your business could also be shut down or you could face time in prison. 

The best idea would be to hire a sales tax service  to help all the work for you. You won’t have the headache of trying to do it on your own and the added stress. With a sales tax service, you will have the most up to date information. You will know how to comply with the South Dakota Nexus Decision that will completely change the sales tax nexus when it comes to selling online. You would also have access to a CPA and accurate information. The laws and rules can change and it’s great to have someone else take care of the fine details so you can focus on your customers. After all your customers are the heart of your business. Providing amazing customer service is key. You will also have time to create new inventory and products. Happy customers and employees make a successful business.

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