dba and tax id

[CobyPhoto]

Originally Posted by ara.bentley

Here's the way I look at it:

Your tax ID allows you to collect taxes on YOUR services and products FROM the client to GIVE to the government.

Key item missing...This tax is remitted to the State Comptrollers office, not just the 'government.' Don't confuse this with the IRS. This tax has nothing to do with the IRS or Income you make. EVEN if you report NO income from your photography business, you must still collect and remit sales tax on all sales.

Originally Posted by ara.bentley

Your income tax is on any income YOU make from YOUR services. This is what you put on YOUR personal tax form around dreaded tax time.

THIS is the tax you report to the IRS. Remember, if you keep good records and have a CPA prepare your taxes, they will first determine the Income/Loss you have from your business operations. THAT Income/Loss will be what is reported on your personal 1040.

Originally Posted by ara.bentley

Your business personal property tax is what YOU pay to the local government body (as I understand) on anything you use to create or aid you in providing your services and products.

The Local government being the County Tax Assesor/collector. Don't forget, that if you are doing things correctly, you will not have to pay sales tax on the equipment/property you are taxed on here and you will be able to depreciate and take this as an expense, offsetting income.

Originally Posted by DangerouslyMoody

Anything I sell to make money on needs to be reported so they may tax me on it...that is what I need the tax ID for right?

last, anything I see must have sales tax on it and that gets filed seperatly...but how...

Autumn,

Your Tax ID or Certificate is what you remit your Sales Tax under. NOT income. Your income is reported on your personal 1040 or applicable form under your Social Security number. (Depending upon your structure of the business, of course.)

Hope this clears it up a bit.

CJ

[DangerouslyMoody]

Dang the lightbulb just went off!!! SO I need to charge sales tax so that I may pass that tax along to the comptroller :)

[CobyPhoto]

Originally Posted by DangerouslyMoody

Dang the lightbulb just went off!!! SO I need to charge sales tax so that I may pass that tax along to the comptroller :)

Yes. DO NOT use the word 'charge' when referring to sales tax. YOU are not charging sales tax. You are merely complying with the Law that requires you to COLLECT and then REMIT sales tax to the State Comptroller's office.

You have no choice in the matter.

CJ

[DangerouslyMoody]

Thanks!! I am a little slow these days LOL

[sabinophoto]

Correct me if I'm wrong, but I thought a DBA was only necessary if your planned business name is different from the name of the proprietor/owner of the business.

For example if my name is Abraham Lincoln and my business name is Abraham Lincoln Photography, then I don't need a DBA.

But if my business name is "Tall Guy Photo" then I need a DBA, correct?

[CobyPhoto]

You are correct. However, this has been discussed many times before...DBA's protect your name in the county of origin. That is the reason most banks will require you have the DBA before opening an account for your business.

DBA's protect you. They are relatively cheap and very effective at protecting your interest in the name you choose.

CJ

[The Ben]

so whats the 6 digit tax code used for photographers????

[CobyPhoto]

Originally Posted by The Ben

so whats the 6 digit tax code used for photographers????

Do you mean NAICS Code? http://www.census.gov/epcd/www/naics.html

This is the standard classification system that most all governmental bodies use. For Photographers, it can vary, but in general, they will always default to this one: 541921 Which is Photography Studio, Protrait

CJ