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valerie
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Taxes on Services?
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Mar 18 20:05 UTC 1997 |
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| 6 responses total. |
cmcgee
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response 1 of 6:
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Mar 19 01:20 UTC 1997 |
So far, taxes on services have not been enacted in Michigan. So you don't
have to send in sales tax payments (or charge sales tax, for that matter).
If you sell an item, you do have to charge sales tax, collect it, and send
it in to the State of Michigan. And then you would have to pay income tax
on any profit you made from that sale.
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tsty
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response 2 of 6:
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Mar 19 10:21 UTC 1997 |
...after all the taxes...
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valerie
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response 3 of 6:
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Mar 19 16:05 UTC 1997 |
This response has been erased.
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cmcgee
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response 4 of 6:
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Mar 19 19:52 UTC 1997 |
Yeah, basically. Stuff you buy to use yourself (paper, pens, etc) you have
to pay taxes on. But if you buy items to resell, and you show your
tax-license at the time you buy, most people will sell to you as a "wholesale"
sale. But they have to report your tax id number to show why they aren't
remitting taxes on that sale.
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i
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response 5 of 6:
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Mar 20 01:25 UTC 1997 |
The rules & filing requirements for MI sales & use tax aren't simple. If
you won't be doing much reselling, it's probably not worth the hassles.
(If you haven't already, I *STRONGLY* suggest that you go over your business
with a good small-business accountant. What you didn't even suspect about
tax laws can result in multi-year financial nightmares in too many cases.
It doesn't cost much, and is worth the peace of mind alone. [The $200/hour
dude from a big-name firm ain't needed unless you've money to burn.])
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rogue
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response 6 of 6:
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Mar 28 16:08 UTC 1997 |
#3: Correct. If you have a reseller tax ID number.
#5: Absolutely. The money you spend on professionals -- especially
accountants and lawyers -- will usually pay for itself many times over.
There are too many laws and regulations for an entrepreneur to sort
through these days.
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