I am in the beginning of starting of my business. I am offering web design and web host reseller.
Few questions I hope someone can help me with.
1) Do I have to charge sales tax (I am in Florida)?
2) Do you recommend contracts for designing?
3) Do I need a tax id?
4) When visiting Uncle Sam at the beginning of the year...what do I need (paperwork, etc.) as far as income, employment taxes, etc.
Any other information you can recommend would definately be appreciated
Every state has different rules. Personally, if it were my rear on the line along with my business, I would spend a few bucks and visit a CPA licensed in Florida. Check around for referrals locally. You may get good free advice here and then you may get wrong advice.
It is worth a few bucks to do it right. A good CPA can help you with finding "Do It Yourself" tools, forms, etc.
My $.02. Best wishes.
Brad @ Xiolink
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I think the key phrase you mentioned is that you are starting a "business" so you would likely need all of those things (I can't speak to the state tax question, however). In my opinion a good business needs several things to get off the ground including the things you mention:
Contracts: must have if doing development or work for hire
Business licenses: Fed Tax ID, state IDs, DBAs, etc.
Business banking: keep your money seperate from business money
You also should have proper business capital, a business plan, as well as some sound legal and accounting advice.
Having said that, an awful lot of people just wing it and some of those do just fine without any legal or tax headaches. I prefer to have professional guidance when it comes to starting up a business, however, as it saves me from nasty surprises down the road.
On the internet world there is no sales tax unless you are shipping something. If you are starting off, you need not to worry. Now ofr a tax ID, its good to have one but since your starting off its not needed. (keep in mind Tax ID, you get things at cost) . Now for taxes, save all of your paperwork!!! At the end of the year, have someplace like H&R do your taxes, its cheap and safe... I do hope this helps....