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do you charge sales tax or a flat fee?

#1

exotion

exotion

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.


#2

M

mowerman05

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


#3

exotion

exotion

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


#4

Carscw

Carscw

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


#5

exotion

exotion

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


#6

Carscw

Carscw

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.


#7

exotion

exotion

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


#8

Carscw

Carscw

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


#9

exotion

exotion

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 %


#10

davbell22602

davbell22602

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


#11

C

Crawdad

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

If you have to collect it, collect it. Do you have a sales tax # ? Here in tennessee, I have to collect it for mulch, topsoil, etc, but not for delivery of said materials, or for mowing. Itemize it, and point out the positive. Tell them, no tax on delivery, so you are saving them money!
Don't argue, stay positive, and make money!



My wife and I have also run a sucessful business at flea markets (Different product) and people don't expect to pay tax. Sales tax is high here (9.75 %) so they get a little huffy about it sometimes. At ths time, we have to figure out if we want to pay their tax for them to save the sale, so that's handled on a case by case basis. Sometimes ya got wiggle room on a price, sometimes ya don't.

Wording is everything. Remember, and tell them if you have to, smiling, not nasty, that you are NOT charging tax, the state is, you are working for the state...collecting taxes, remitting the funds to the state, and taking complaints. Ad for this, they ARE NOT paying you. The last 2 parts about taking complaints, and not getting paid for it, ya gotta be careful with. Some folks have no sence of humor, and you'll get a rep as a pr!ck.
Sometimes, all ya gotta say is, "I don't like paying taxes either, but we have to. We're a real business." You don't have to point out, the fact that the ones who don't collect taxes get a shocker at the end ofthe year.


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