Sales Tax | Business Tax | Bookkeeping | Payroll

Sales Tax

Sales tax is tax imposed upon the sale and consumption of goods and services. It can be imposed either as a general tax on the retail price of all goods and services sold or as a tax on the sale of selected goods and services.

In most states and in many cities, you must collect sales taxes on applicable sales. Generally, sales taxes apply on the sale of just about anything to just about anyone.

Exceptions are sales to resellers, such as wholesalers or retailers, who have valid state resale certificates. Batiste Bookkeeping Service recommends that our clients ask to see the resale certificate of any wholesaler or retailer with whom you conduct business. Another exception is sales made to tax-exempt institutions, such as public schools and libraries. In some states, sales taxes apply only to products, while in other states; sales taxes apply to services as well. We can setup a consultation to distinguish what areas of sales tax that you are not aware of make recommendations and solutions to resolve any issues that may be apparent.

Business Tax

In the United States your business, if incorporated, must file and pay federal income taxes, state income taxes in most states, and local income taxes in some areas.

If your business is incorporated, you may elect to become an "S" corporation (formerly known as Sub-Chapter S) for federal income tax purposes. As an S corporation, your company will not pay direct taxes in most cases. Instead, income and losses are passed on to stockholders. Therefore, the individual stockholders pay the income tax.

Some states treat S corporations in the same manner as does the federal government, and taxes the stockholders. Other states do not recognize S corporation status, and tax the corporation directly.

The federal corporation tax returns (regardless of S corporation election) are due one month earlier than individuals' on the fifteenth day of the third month after the end of the company's year. For example, if your fiscal year ends on December 31, your filing date is March 15. The payment for a corporation with an S election is still part of the individual return due on April 15. Batiste Bookkeeping Service can help you setup your business and decide when your estimated tax payments are due.

If your business is a sole proprietorship or a partnership, the income is taxed directly to the owner or partners for federal income tax purposes. Most states follow the same rule. However, a few jurisdictions tax the business entity directly. Check with your tax consultant for the rules and regulations that apply to your business.

Remember, you need to file tax returns, and pay a minimum tax in some areas, even if your business has yet to earn a profit.

Bookkeeping

Bookkeeping is a necessary evil that all business owners must face in managing their businesses. It is imperative that you keep accurate bookkeeping records so that you will always know who owes you money and who you owe money to.

Accounts Payable is one area of bookkeeping that seems to give most businesses a lot of trouble. Accounts payable are those debts owed by your company to your creditors for goods purchased or services rendered. Having open account credit will allow your company to conduct more extensive operations and use your financial resources more effectively. If you are going to have a good credit record, the payment of these invoices must be timely, and you will need an efficient system for keeping track of what you owe and when it should be paid. Batiste Bookkeeping and Tax service will help you to establish a system that fits your schedule as well as highlight those areas that could be detrimental to your financial stability when tax season approaches.

Payroll

The decision to add employees should not be taken lightly. In addition to having a responsibility to the employees you hire, you also acquire the responsibility to withhold, report, and pay taxes to the federal, state, and sometimes your local government. Batiste Bookkeeping and Tax service will be devoted to taking you through the necessary steps of adding employees on your payroll, paying them, making payroll tax deposits, completing quarterly payroll tax returns, and making year-end reports.