175 - 5 Steps to Manage Small Business Sales Tax
Today on the podcast we are reairing episode 63 of the podcast where my friend, and sales tax expert, Amy Monroe shares the five steps to manage small business sales taxes.
1. Where do you need to collect tax (do I have nexus)?
This can depend on the size of your business and the services/goods you sell. You will need to know if you need a seller's permit.
2. How you register for a seller's permit
You will also need to search if there may be a secretary of state requirement.
3. What are the sales tax rates and how do you collect them?
Often the sales tax rate is based on the location of the buyer. You need to make sure you are also collecting any additional local, county, city and district taxes.
4. Know and manage taxability and exemptions
If you provide goods and services it's important to know what is and isn't subject to sales tax and when/if they need to be bundled together or specifically stated. The exemptions may be more nuanced than you need.
5. Deadlines and filing obligations
Accounting is important. When you document a transaction separate out revenue and sales taxes. Most sales tax returns for most industries it's gross revenue minus any deductions or exemptions equals your taxable revenue. Factor in the applicable tax rate and that's how much you owe
Get in touch with our guest
Amy Monroe, Sales Tax Guru
Follow Amy on Instagram at @iamamymonroe www.instagram.com/iamamymonroe/