Business License
Date: Tue, 16 Mar 1999 16:27:38 EST
From: Kjatt@aol.com
Subject: Re: illustration: sales tax
In a message dated 3/16/99 9:05:40 PM, pthth@ibm.net writes:
"What determines if illustration is taxable? Should we all have a sales tax licenses?"
The important thing is that we have BUSINESS licenses. Hate to get caught without that. Even though you don't collect and distribute sales tax, there are other taxes you are liable for. B&O for example . . . And even if you are a service industry, you will still owe a tax. Sorry for the bad news . .
- -Kevan
--
Date: Tue, 16 Mar 1999 15:15:03 -0700
From: Elaine Garvin
Subject: illustration: sales tax & business licenses
Arizona State law doesn't require a business license (or dba), but the banks do if you want to have a business checking account. It costs $10 here for a dba and is good for 5 years. Then you have to reapply and do another name search which the state does for you (but only for within the state). Takes about 5 working days.
Lainey
Tempe, Arizona
--
Date: Tue, 16 Mar 1999 15:25:37 PST
From: "David Hubbard"
Subject: Re: illustration: sales tax
Personally, I've never heard of a "Business" license. The people I know in the state of Indiana DO have to have a tax I.D. number, which allows them to collect sales tax. All income is taxable, of course, but what determines whether you're a "business" or a "hobby?" There have been some years I've done less than $200 worth of "business"(last year, for instance). After all, I do this to make a "little" extra money, not to pay it all out in permits and such.
--
Date: Tue, 16 Mar 1999 16:09:38 PST
From: "David Hubbard"
Subject: Re: illustration: Federal & State Tax payable
"A business license gives you permission to do business in the state in which you are domiciled. It doesn't have anything to do with the tax ID #."
I realize this, though none of my creative buddies have ever mentioned anything about getting a "business" license for Indiana. They do have to have the State Sales Tax I.D. Number to collect taxes for anything sold (and I'm assuming this applies to services, too), and this is the only item I'm aware of that IS required by Indiana (though I'm far from an expert).
"The tax I.D. number doesn't have anything to do with the amount of Federal or State income taxes you pay."
I realize this as well, since the two are completely separate items. I hear rumors all the time about THIS income or THAT income not being taxable, and that simply is not true.
Thanks for the response.
- -David
--
Date: Tue, 16 Mar 1999 21:58:31 EST
From: Kjatt@aol.com
Subject: Re: illustration: sales tax
In a message dated 3/16/99 11:26:29 PM, gloriousmane@hotmail.com writes:
"Personally, I've never heard of a "Business" license. The people I know in the state of Indiana DO have to have a tax I.D. number, which allows them to collect sales tax. All income is taxable, of course, but what determines whether you're a "business" or a "hobby?" There have been some years I've done less than $200 worth of "business" (last year, for instance). After all, I do this to make a "little" extra money, not to pay it all out in permits and such."
Obviously I can't speak for all states, but it is hard for me to imagine any state not wanting some record of who is doing business in their state. Thus, the business license. Perhaps when you get your tax ID number from IN that is the same as registering your business. If you are making money, I would bet my bottom dollar that your state government wants to know about it. And quite possibly your city.
States make part of their income from business taxes. Even if you are a painter who made 50 dollars last year, technically, they would like to know. The same way they would want to know if you LOST money during the year.
Folks I highly recommend you check with your state excise departments to see what your obligations are. For the record, I've heard state audits make federal audits look like picnics.
- -Kevan
Back to the Library directory.