"Stuart O. Bronstein" <spamtrap[at]lexregia.com> wrote:
- quote -

In Florida, it is a common practice to charge a "sales tax
included" price. In my area, the state plus local option tax
rate is 7.5%. For a $15 sale, I can divide by 1.0751 (the
state insists it get the benefit of rounding up. Thus the
extra .001), yielding a $13.95 taxable sale and $1.05 sales
tax collected. On the sales tax return, the taxable sales
and the tax collected are separately stated. I would think
a similar procedure would be OK for most states.

Don Rosenberg, E.A.

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harley1019[at]hotmail.com (Harley) wrote:

- quote -

You'll have to check with a local lawyer who knows about
these things. At least in California you're generally
required to state the tax separately. Otherwise they may
impose tax based on the higher price.

Stu

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Harley wrote:

- quote -

In California -- yes (assuming the service is taxable),
yes -- but you'd pay the tax on the $15 rather than on
the "pre-tax" amount.

Provided, of course, that the service is actually
performed in your state. If it's performed in a
different state, then that state's sales tax law
would apply, and you might have to register as
a sales-taxpayer in THAT state, etc.

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harley1019[at]hotmail.com (Harley) wrote:

- quote -

You'll have to check with a local lawyer who knows about
these things. At least in California you're generally
required to state the tax separately. Otherwise they may
impose tax based on the higher price.

Stu

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I appreciate all the responses, thanks a lot guys.

I have a few more if you're interested :P

Without being too specific, suppose I was planning on a
$15.00 price point for the service I want to provide - It's
not going to sound very good on my various advertising
venues to say 13.95 plus tax haha, would I be able to
advertise it as being $15 a month, while simply paying the
sales tax myself?

Meaning - when they're going through the checkout procedure,
instead of it showing

13.95 - Service
1.05 - Tax

15.00 - Total

Could I simply do 15.00 Total - while merely subtracing the
sales tax from my bottom line?

Harley

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"Harley" <harley1019[at]hotmail.com> wrote:

- quote -

For NC, you can't as far as I can see. For SC you don't
have to collect sales tax.

- quote -

On sales made to people who live in the same state your
operate from - YES.

- quote -

Yes, BUT

- quote -

Yes, you'd be cheating the state out of the sales tax you
are required to collect and remit.

Gene E. Utterback, EA

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Harley1019[at]hotmail.com (Harley) wrote:

- quote -

You move to Virginia or some other state that is not NC or
SC.

- quote -

For sales to NC residents you will have to charge sales tax
based on their location. Mecklenburg has a different rate
than the rest of the counties plus you must report sales by
county and sometimes city.

- quote -

See the answer to C.

- quote -

Yes you would be breaking the sales tax laws if you used it
to avoid collecting NC sales tax.

Drew Edmundson, CPA (NC)
e-mail is my first name at nccpa dot com

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harley1019[at]hotmail.com (Harley) wrote:

- quote -

Don't live or have business assets or sales people in either
state.

- quote -

If you are physically located in the state, you will be
required to charge sales tax to people in the same state.
You should also check to see if NC has tax agreements with
other states that will require you to collect tax for people
living in those states.

- quote -

Sure. You'll still have to collect the tax, however.

- quote -

Only if you don't collect sales tax.

Stu

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"Harley" <harley1019[at]hotmail.com> wrote:

- quote -

It seems to me that you are trying to complicate a business
venture that need not be so complicated.

Wayne Brasch, CPA, M. S. Taxation

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harley1019[at]hotmail.com (Harley) writes:

- quote -

Do yourself a favor, if you incorporate at all, do so in
your own state. That you incorporate in other states,
setting up mail boxes (or whatever) will not relieve you of
responsibilties to your own state. I'd advise you not to
form any kind of entity, outside of yourself, without
professional consultation. You could be opening yourself up
to much expense, and reporting procedures, to make it a very
unwise, indeed expensive, move!!! 'tis likely you'd do best
to operate as a sole-proprietor (IMVHO)!=

"Jack" - John H. Fisher - TaxService[at]aol.com
Philadelphia, Pa - Atlantic City, NJ - West Wildwood, NJ
My Newsgroups & Boards at: http://members.aol.com/TaxService/index.html

Where Ignorance is bliss, 'tis folly to be wise!=

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I'm in the process of gearing up to start a fee based
service (no not porn). I am now getting ready to setup the
LLC itself, however I had a few questions.

1. I currently live in North Carolina, most of my customers
will be from North/South Carolina. How do I setup the
LLC so that they do not pay sales tax?

A. If I don't have a storefront, but am using my home
address for the business, will I be required to charge
sales tax?

B. Would I be able to rent a PO box in either Virgina, or
Georgia, and use that as the address for the LLC while
having my mail forwarded to my residence?

C. Would I be breaking any laws if I did something along
the lines of B.?

Thanks for any and all advice.

H

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