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taxes - reseller and web design

Posted by atlast, 11-03-2002, 10:19 PM
In the US, (Florida) am I obligated to charge sales tax for my services? I am just starting out....I will offer webdesign and reselling hosts. Thanks.
Posted by Daviey, 11-03-2002, 11:42 PM
Not yet. They tried it a few years ago and it was reversed quickly. I think there is talk of changing it again but at the moment I don't *think* there is any service sales tax in any of the 67 counties. It would be a good idea to check with your county and/or city agencies when you get your business license to make sure. I'm not an authority on it, just in business in Florida . Don't forget to register your ficticious name (if you use one for business) with the state. That's about it for sole proprietor - lot more for corps. Good luck! David
Posted by mpope, 11-04-2002, 04:42 PM
Also, keep in mind that the second you sell anything that is not a service, you technically have to report it. For example... "oh, I'm going to sell this old server that we don't use anymore" ... That's why I prefer to take old servers home to add to my collection... yes that's right... it's a tax reason... not because I like toys...
Posted by Daviey, 11-04-2002, 05:57 PM
Actually, it depends on whether you have a tax # or not. If you are strictly service oriented (never got a tax ID), and you sold one of your old servers (to take Matt's example), it is up to the person buying it to go down and pay the sales tax. I'm sure you can imagine how many people go down to do that, but as far as I understand the last conversation I had with the tax man, that is the law in Florida . Same advice holds, however, ask your local tax authority. David
Posted by atlast, 11-04-2002, 07:54 PM
Thanks guys. So I need to get a business license? I already got my ficticious name So David, you are in Florida too? Who did you get tax advise from? Thanks- Tina
Posted by Daviey, 11-04-2002, 09:07 PM
Yes, I am near Tampa. I have a tax preparer and a bookkeeper that I use who try to keep me on track . Most if not all counties in Florida require a business license, and if you are inside the limits of a city, it's likely they will require one as well. It's mainly a source of revenue (read that tax) for them. For this kind of business, you probably won't be charged much. Just be honest with them and they usually help you out. Mine is less than $50/year in both cases (actually, just moved outside the city limits so one is not needed). If you have no experience with your own business at all, I would strongly suggest you ask around for a reputable tax preparer or accountant (CPA is not really necessary and more $$). I'm talking individuals, not the big chain "stores" that do your taxes. A local person like that can usually help you with all this stuff for a reasonable fee. It wouldn't be a bad idea to have the contact if/when your business increases as the worst thing you can do is your own taxes and bookkeeping, IMHO. It's really not that expensive to do it right from the beginning and a lot less headache down the road, but at least get some help setting up. Good luck! David
Posted by atlast, 11-04-2002, 09:35 PM
Thanks David for the info......I will def. take your advise !! I am just north of Tampa - so we are neighbors

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