Sales taxes vary by state and are imposed at the retail level.
It's important to know the rules in the states and localities
where you operate your business because if you're a retailer
you must collect state sales tax on each sale you make, says Ralph
Anderson, a CPA and small-business tax specialist with accounting
firm M.R. Weiser.
Before you open your doors, be sure to register to collect sales
tax by applying for a sales permit for each separate place of
business you have in the state. A license or permit is important
because in some states it's a criminal offense to undertake
sales without one. In addition, if you fail to collect sales tax,
you can be held liable for the uncollected amount.
If you're an out-of-state retailer, such as a mail-order
seller, who ships and sells goods in another state, be careful. In
the past, many retailers have not collected sales taxes on the sale
of these goods. Anderson advises you to be sure you or your
accountant knows the state sales tax requirements where you do
business.
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Excerpted from
Start Your Own Business