Texas sales tax?

Discussion in 'Business Operations' started by millenium_123, Jan 6, 2011.

  1. rob640

    rob640 LawnSite Member
    Messages: 167

    I am new to the biz and this is one area i was lost on when starting out i did alot of research online and found that it is required. I am not an accountant so don't take my word for it. When i started i filed for a Texas sales and use tax permit. Heres a link to some info that u might find helpful http://www.window.state.tx.us/taxinfo/taxpubs/tx94_112.html it is my understanding that you must have one your first day in business and have to file your earning quartly but dont have to pay untill you exceed 5,000 in 4 quarters. But like i said im not an accountant so i dont wanna stear u in the wrong direction this is just my understanding of it.
  2. Zak's Pro. Lawn Care

    Zak's Pro. Lawn Care LawnSite Senior Member
    Messages: 322

    my question is how are you going to start charging tax to your customers since you haven't been doing it in the past...if you need to in your state. this may raise an issue for some of your customers because it means more money they must pay each month. you may want to ask your accountant what he thinks you should do about that issue if you end up needing to charge tax.
  3. rob640

    rob640 LawnSite Member
    Messages: 167

    The way i decided to go about things is once i set a price i kept the price once i passed my 5k threshold it became that much less i am making on each property. I knew the day would come where i would pass this threshold so i priced acordingly.
  4. bohiaa

    bohiaa LawnSite Fanatic
    Messages: 5,220

    I would be VERY carefull what some of you put in writting.

    if your NOT collecting sales tax, then that means that your NOT paying redemption tax.

    nor are you paying self employment tax.

    you had better get this right. I bet you will be unert the microscope now for the next 7 to 10 yrs.

    remember you can lie to the state and local's, But dont lie to the feds.
    remember Martha Stewart.

    I would get this cleared up NOW. the state had to turn it in to the Government.
    then you have problems.
  5. mslawn

    mslawn LawnSite Senior Member
    from LA
    Messages: 483

    Why is this even questioned? If it is your states law to collect sales tax on labor then you better abide by it. There is not even a discussion here. They WILL, not maybe, WILL penalize you and MAKE you pay it in the longrun.

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