taxes

danieledwards12

danieledwards12

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i realize this wont be the same in every state (im in oklahoma) but for someone who owns a detailing buisness, do you have to charge taxes on your details? or does this only apply to selling items?

question number two, for someone opening a detail buisness (fully mobile) how do you find out what tax bracket you would be in for paying income tax.
 
danieledwards12 said:
i realize this wont be the same in every state (im in oklahoma) but for someone who owns a detailing buisness, do you have to charge taxes on your details? or does this only apply to selling items?

question number two, for someone opening a detail buisness (fully mobile) how do you find out what tax bracket you would be in for paying income tax.
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Hi Daniel,
I just went through this earlier this year, there are some good threads on this topic if you do a search. You should charge sales tax on everything you do or sell.
Also, Your Tax Accountant would be best to talk to as far as the income tax bracket, be ready for some sticker shock though.
 
It varies by state, check your local laws. In NC you do not have to charge sales tax for services, although they are talking about changing that right now.

Income tax will depend on how you set up your business legally. The easiest way starting out in my opinion is setting up as a Sole Proprietorship. This way you just file the income on your personal taxes, just make sure you set aside money for the income tax. I would talk to an accountant and/or a lawyer about the best way to set it up.
 
JimB204 said:
It varies by state, check your local laws. In NC you do not have to charge sales tax for services, although they are talking about changing that right now.

Income tax will depend on how you set up your business legally. The easiest way starting out in my opinion is setting up as a Sole Proprietorship. This way you just file the income on your personal taxes, just make sure you set aside money for the income tax. I would talk to an accountant and/or a lawyer about the best way to set it up.
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Disagree...set up an LLC and file an S-Corp election. This will allow you to pay yourself a wage on w-2 basis throughout the year and withhold payroll and income tax. The rest will become a distribution which will flow to your personal tax return using statement K-1 and is not subject to payroll tax (only personal income tax). Of course, you need to talk to a tax professional though.
 
I'm in Cali, no sales tax for services here.
I'm sole proprietor, and file my taxes in Feb. Keep track of every penny you spend on business supplies.

Sent from my HTC One using AG Online
 
No sales tax on services here in MA. You will pay income tax on your adjusted income. If you have a good accountant your income will be fairly low after all your expenses. I'm no expert but everything wdmaccord said sounds a bit off to me. I'm pretty sure an LLC is a pass through entity just like being a sole proprietor (which is what I am) so either way it would be listed as personal income and no corporate tax is due.
 
In New York State, sales tax on services are limited to any customization performed.

As for Oklahoma, I am not an accountant but I have an idea where to look. I googled... "Oklahoma sales tax on services" and found the right document. Chapter 65 of the Sales and Use Tax code.

BTW, the main site is.... Oklahoma Tax Commission

Section 710:65-1-7 is of interest and #3 talks about contractors. It looks like all your labor would be subject to sales tax.
 
thank you all for the help. i have read and read and then read some more and then i get all of yalls responses and im still overwhelmed so i guess i will be going to talk to an accountant.
 
I'm in WV and the tax dept told me I had to charge tax for any service or product that I sell. The only time I don't have to charge tax is when I do work for a car dealer since car dealers are tax exempt
 
wdmaccord said:
Disagree...set up an LLC and file an S-Corp election. This will allow you to pay yourself a wage on w-2 basis throughout the year and withhold payroll and income tax. The rest will become a distribution which will flow to your personal tax return using statement K-1 and is not subject to payroll tax (only personal income tax). Of course, you need to talk to a tax professional though.
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I said easiest, and setting up as a sole proprietorship is by far the easiest and cheapest way to start out. If you are growing and starting to stay busy I would look at other options for sure.
 
ok, I called the Oklahoma tax commission this morning and found out that I do not have to charge sales tax because I will not be selling a tangible product. Oklahoma doesn't charge tax on services.
 
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