Friday, January 29, 2010
Your sales tax responsibilities as a new business owner, whether you start a business or buy an existing business, will vary depending on the type of organization or entity you operate. Besides state level, estimation of sales tax is also done on municipal or county levels. Payment of state sales tax depends on your sales and your state's regulations.
Normally it is the consumers who are burdened with sales tax. The re-sellers on the other hand, are exempted from sales tax, provided they do not use the goods on which sales tax is levied.
What is sales tax id number?
Sales tax id number or sales tax exemption certificate is a legal document issued by the state. This certificate of authority gives your business the authority to collect the required sales and use taxes, and to issue appropriate sales tax exemption documents, including resale certificates used for purchasing inventory.
Other names : Sales tax id number also known as
Sales tax vendor id number
Sales tax registration
Reseller tax id
Sales tax permit
Reseller certificate and
Sales tax exemption certificate
Certificate of authority
Sales tax ID number
State tax ID number
Monday, January 25, 2010
Friday, January 22, 2010
Bookkeeping, commonly referred to as keeping the books, is the process of keeping full, accurate, up-to-date business records It is the process of recording and classifying business financial transactions (activities), maintaining the records of the financial activities of a business or an individual.
A bookkeeper assists you in effectively managing your company’s accounting records, receipts and payments, income and expenditures. stay abreast of profits and losses. Furthermore, accurate bookkeeping is required by both federal and local tax agencies.
Bookkeeping involves making a record of the monies received by your business as well as the monies paid out. It encompasses money your company owes to vendors, employees, tax agencies, contractors and any other individual or entity. Likewise, accurate records of amounts owed to your company by outside individuals and organizations are also recorded in a company's books.
A proper bookkeeping system helps to determine the amount of taxes your company must pay. They are also used in preparing your tax returns. Sometimes, a tax agency may decide to investigate the information reported on a tax return or other type of tax-related document. In such cases, you are required to present accurate records for the tax agency's inspection. Failure to do so could lead to hefty fines, penalties, or in severe cases, imprisonment.