What Your Small Business Should Know About Sales Tax
Even if this is your first day as a business owner, you are not unfamiliar with sales tax. You have been paying this tax for years on the majority of items you purchase, and likely have guessed that you need to charge the same tax now that you are in business. So you can be best advised about your tax requirements, here is a quick guide.
Cities, counties, and states can all levy sales taxes, meaning it is not just safe for you to assume that as long as you are in accordance with state tax regulation you are in the clear. Make sure that you connect with a local accountant or city official to get clarity about the exact taxes you need to pay before you open your doors.
Another crucial aspect of meeting your sales tax responsibility is by registering to collect sales tax. You do this by applying for a sales permit. You will need a permit for each individual business location where you will need to collect this tax.
What happens if you simply do not collect sales tax? Can you avoid this obligation altogether? No! If your business fails to collect sales tax, it can still be held liable for the full amount it did not collect, meaning your business will need to come up with that money somehow. Ultimately, it is best to ensure you are educated about your sales tax obligations before your business opens it doors to avoid unnecessary expenses down the road.
Would you like more information about your business’s sales tax responsibilities? Contact Phocus Companies in Phoenix to talk with Arizona business experts who can help you ensure you are complying with state and local regulations. We have been offering financial planning services to Arizona business for decades and are here to help your business see success. Call us today!
