do you charge sales tax or a flat fee?

exotion

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I have been running books double checking everything and noticed I have been spending lots of money in taxes and I have been charging flat fees I am thinking about adding sales taxes to my invoices wondering if anyone else does this. A friend of mine who runs a lawn business does so I know I can.
 

mowerman05

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How do you charge sales tax without a tax ID number. Also tax on labor?
 

exotion

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I have a tax id I haven't charged sales tax.. I just pay what I'm told
 

Carscw

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I think it's best just to charge a flat fee.
A homeowner does not want to hear $30 plus tax.
 

exotion

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I think it's best just to charge a flat fee.
A homeowner does not want to hear $30 plus tax.

That's excatly how I felt however I am paying 15% taxes and according to the dor website the buyer is supposed to pay 9.6% of that as sales tax
 

Carscw

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That's excatly how I felt however I am paying 15% taxes and according to the dor website the buyer is supposed to pay 9.6% of that as sales tax

So jack your price up 5 bucks.
Make sure you claim all your deductions. Every Penny even lunch and drinks. First year out you can show a loss. Time you spend looking at a job to give a bid.

It's a lot to keep up with.
Learn what income to report and what not to report.

When I buy my mower parts and welding supply's if I pay cash and don't need a receipt I don't pay sales tax even at the cub dealer.
 

exotion

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So jack your price up 5 bucks.
Make sure you claim all your deductions. Every Penny even lunch and drinks. First year out you can show a loss. Time you spend looking at a job to give a bid.

It's a lot to keep up with.
Learn what income to report and what not to report.

When I buy my mower parts and welding supply's if I pay cash and don't need a receipt I don't pay sales tax even at the cub dealer.

Ya that's what we are trying to figure out I don't suddenly want to jack up my bids by 5 bucks because my prices are fair to my particular clientell (middle class, and lower class) but I'm not sure the reactions I am going to get by tacking a 2.9% sales tax to my invoices
 

Carscw

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Ya that's what we are trying to figure out I don't suddenly want to jack up my bids by 5 bucks because my prices are fair to my particular clientell (middle class, and lower class) but I'm not sure the reactions I am going to get by tacking a 2.9% sales tax to my invoices

How about just go up $2 I bet most will not even say anything about it
 

exotion

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How about just go up $2 I bet most will not even say anything about it

Ya its come down to either raising my new bids 2 dollars or tell my customers that if they want a bill I need to include sales tax otherwise they can pay me when I am there. I will still claim it of course but this way the people paying through invoice will take the total tax down a few %
 

davbell22602

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Add on the tax at the end of the total, total cost plus tax.
 
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