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Grex Smallbusiness Item 11: Taxes on Services?
Entered by valerie on Tue Mar 18 20:05:44 UTC 1997:

This item text has been erased.

6 responses total.



#1 of 6 by cmcgee on Wed Mar 19 01:20:02 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.  


#2 of 6 by tsty on Wed Mar 19 10:21:52 1997:

...after all the taxes...


#3 of 6 by valerie on Wed Mar 19 16:05:30 1997:

This response has been erased.



#4 of 6 by cmcgee on Wed Mar 19 19:52:22 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.  


#5 of 6 by i on Thu Mar 20 01:25:50 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.])


#6 of 6 by rogue on Fri Mar 28 16:08:34 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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