June 25, 2008
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I am a sole proprietorship.
So, today, I got my State of Texas tax payers number for business purposes.
You see, graphic design services in Texas are sales taxable. Now, marketing/PR/communication services are not. It's kind of screwy. My dad is a CPA, and he was explaining that if they use a computer to do a client's payroll services, it is sales taxable. If they do it manually, it isn't.
So, I am official. I hadn't billed my client yet, good thing too, I would have been committing a misdemeanor, punishable by not more than $500 per day.
All is good and proper in my business world.
Comments (8)
interesting...
Oh, I wonder if I can find you on Lexis Nexis... (Why no, I am not using my powers for evil.)
And by the way: http://doctorhorrible.net/doctor-horrible-teaser-video/80/ - Nathan, Joss, and Neil Patrick Harris. This is going to be good.
@tabin - I just set the poster as my background.
I don't know if I would show up on Lexis-Nexis, but it is just my name if you wanna check. (Not Punky Diva, or Lulu Dupres, the other one)
I think my head now hurts... have to talk to the accountant when I get home... (though I will hopefully fall into the "communications/PR" category, I'll check to be on the safe side.)
Congratulations!!
Before you get established, maybe you should ask your father about registering a company abroad.
There is no company tax here at all. But I am going to get fined $50 for not submitting my tax return for last year. I don't see the point of paying an accountant to do my tax return when I can't be taxed on it so I have to wait until my kid graduates (tomorrow) and can do it on Quicken for me
@SavonDuJour - It is state sales tax, it wouldn't matter where the company was established, if I sell in Texas, I have to pay sales tax. I would love to be some big high role with an overseas tax shelter, alas, I'm a low roller.
Ha! In NYS, if you work on hardware it is subject to sales tax, but if you work on software (custom coding or custom configure), it is not sales taxable.
My husband has been a sole proprietor for many many years. I do the books and the taxes.
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