Ryan VaughnCOO of Incite Tax & Accounting. Ask me anything about your taxes.

Small Business Taxes for Beginners | Part 3 #IRSsucks

21 Jun 2023 · 1 min

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In this segment, the speaker explains that sales tax is not a tax on the business itself but a tax on the customer that the business must collect and remit to the state. Because the government treats uncollected sales tax as theft, failing to collect or remit it can result in penalties. The speaker emphasizes that sales tax rules and rates differ across states, counties, and cities, so small business owners must understand the specific regulations for every location where they sell to avoid legal trouble.

Chapters

What are the taxes small business owners need to know about? Sales tax, I mentioned. Interesting thing about sales tax, not actually your tax. It's your customer's tax that the government obligates you to collect on their behalf. And if you don't collect it on their behalf, you get penalized. And the government looks at this, if you file it wrong, as theft because the client should have paid for it. And if they did pay for it, but then you don't, Send that into the state and they feel like you're stealing their money. Every state is different. It's very important that you understand the rules for your local area, and even sales tax rates vary from county to county, city to city. You're going to want to make sure you understand your rules of what you're selling wherever you're located and where you're selling things so that you don't get in trouble. Unfortunately, while this isn't your actual tax, it is your burden that the government puts on you.