Mississippi is credited with having the first general sales tax as we know it today in the United States. Sales tax has been around for a while! Believe it or not, sales tax can be traced back to Egypt, Athens, and Rome. Try to keep sales tax and income tax separate in your mind because the information that follows applies only to sales and use tax. The laws governing sales tax and income tax are very different. Separately, income taxes are paid on the income you earn as a photographer and are administered at the state and federal levels. There will be more about use tax later in this article. Use tax, simply explained, applies when a sales tax has not been paid on a taxable product or service. More often, you hear people mention sales tax, but we cannot forget about use tax. Sales taxes are imposed on the sale of tangible personal property and specified services and are administered at the local and state levels. Photographers often trip up on the fact that these are separate and entirely distinct taxes. The two major ones are sales tax and income tax. First thing first - there are many types of taxes at the local, state, and federal level that apply to businesses. Let’s walk through some basics about sales and use tax. In this post, we will cover: Sales and Use Tax
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Hire a tax professional who can help you sort out the tax regulations for where you are doing business. While the information that follows is valuable and informative, after reading this, you likely will have additional questions that are specific to your business and your local area. They are aching for revenue, and if you don’t pay the taxman, he will find you.Īre you scared yet? Good, you should be! This is your business we are talking about, and the last thing you want to unexpectedly hear is that you owe thousands of dollars in back tax liabilities, interest, and fines.Ĭomplying with sales and use tax obligations can be a complex and confusing endeavor for business owners.
State and local governments have been hit hard by the recession and the popularity of “tax-free” online shopping.
Managing your tax obligations probably isn’t your favorite part of being a business owner but sucking it up is a must in order to protect your business.Īs Christopher Bullock originally said and good ol’ Ben Franklin famously quoted, “in this world, nothing can be said to be certain, except death and taxes.” Nearly 300 years later, these words are still true. Running a photography business means you sometimes have to deal with taxes. Opinions expressed are based on the Author’s own experience. As an Amazon Associate I earn from qualifying purchases. **This post contains affiliate links and I will be compensated if you make a purchase after clicking through my links.
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