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The Lowdown on Collecting and Reporting Taxes

Maintain good records, and taxes don't have to be a headache.

This story appears in the April 2003 issue of Teen Startups.

(YoungBiz) - Starting a business is not as easy as finding a storefront, stocking it and opening your doors to the eager customers waiting outside. If you're planning to sell products rather than services, the long, and sometimes confusing, process starts well before you'll see your first sale.

Every business that sells tangible goods must have a seller's permit (also called certificate of resale or sales tax permit), collect sales tax, file reports with payments of the tax collected, and maintain records of all transactions. Sound like a lot of work for nothing? Then consider this: In many states it's a crime not to fulfill these requirements. Permits can also be revoked for failure to follow the rules.

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