June 25, 2008

  • 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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