These last two weeks has been a rush to prepare one of my small online retailing companies to move into a warehouse and split into its own entity. After doing international trade for the last two years, some interesting things regarding state tax were brought to my attention, which I thought might be helpful to know.
According to Utah Law, (and most states I believe) State tax needs to be paid on the sale of every item that is shipped to someone in Utah. These taxes are only paid on the cost of the item and not the shipping and handling of the item. In addition, each city and county may have its unique tax rate and requires tracking and paying the necessary sum… Of course you could pay more just to be safe and Uncle Sam won’t mind
From my experience and from my friends and associates who have been in business for themselves for more than 10 years, Employee withholding tax and sales tax are two things you just screw up on.
If you’re an entrepreneur starting out, include these taxes and payments in your spreadsheets and proformas. Chances are pretty good that it’s not going to break the bank, but it could save immensely in crippling fines and heartache in the future.
Do I have to pay taxes if I want to donate books?
Ben, if you are referring to http://worldwidebookdrive.org, you cannot donate books for tax purposes, but you can give them to the organization to sorted and used to their best possible end.
Keller – you are pretty cool. You will be very successful….just keep focused. I like your blogs and sounds like you are learning a lot as hands-on entrepreuer. let me know when I can help.