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6 responses total.
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.
...after all the taxes...
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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.
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.])
#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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