question about sales tax

Discussion in 'Starting a Lawn Care Business' started by edgeman2003, Apr 7, 2008.

  1. edgeman2003

    edgeman2003 LawnSite Member
    from md
    Posts: 188

    I called the local government office to see if I need a business license. They told me no because I don't sell products only offering a service. I was wondering do I need to pay sales tax, which is 6% in maryland? they didnt know for sure if I had to pay them or not. I live and work in maryland.
     
  2. ALC-GregH

    ALC-GregH LawnSite Fanatic
    from PA
    Posts: 7,053

    not unless your selling a product. If you buy a load of mulch, your better off paying the sales tax (if there is tax on it) and be done with it rather then not pay the store and have to submit it yourself. Plus, it's one more thing you have to account for in your gross income that needs to be paid. It's not your money when you collect sales tax and some have fallen victim to not paying it and using the money for something else. At that point, you'll have to pay it regardless and it could easily put you in a bind.
     
  3. edgeman2003

    edgeman2003 LawnSite Member
    from md
    Posts: 188

    so you just charge the customer flat cost?
     
  4. ALC-GregH

    ALC-GregH LawnSite Fanatic
    from PA
    Posts: 7,053

    If your doing a mulch job, yes. Thats if the tax is already paid.
     
  5. edgeman2003

    edgeman2003 LawnSite Member
    from md
    Posts: 188

    they told me I can just use my ssn for the business since Im a sol pro. but I think for my bank, I need an ein # to open an account.
     
  6. ALC-GregH

    ALC-GregH LawnSite Fanatic
    from PA
    Posts: 7,053

    if you do not pay the tax, you'll need to include it on the bill to the customer. At that point, you'll be liable to pay in the sales tax and that will require a sales tax ID #
     
  7. ALC-GregH

    ALC-GregH LawnSite Fanatic
    from PA
    Posts: 7,053

    your SS# is your business tax ID #. Or the governments way of collecting your personal taxes that you'll need to pay. You should get a DBA # to use for your bank account I believe.

    Ok, now that I have this straight, your "entity" # or DBA # is the # you'll need to open the bank account. Not you SSN.
     
  8. edgeman2003

    edgeman2003 LawnSite Member
    from md
    Posts: 188

    whats a DBA #?
     
  9. Paulup

    Paulup LawnSite Senior Member
    Posts: 270

    according to Marylandtaxes.com "charges for repairing or restoring an existing item of tangible personal property to its original condition are not subject to tax. A charge for reconfiguring or enhancing existing tangible personal property, unless it results in the creation of a new and different item of tangible personal property, is also not taxable."

    In Louisiana, you do not have to charge sales tax on any service with the exception of dry cleaning, unless it is the installation of a movable object, or repair to a movable object.
     
  10. ALC-GregH

    ALC-GregH LawnSite Fanatic
    from PA
    Posts: 7,053

    DBA= "doing business as"
     

Share This Page