Evil Tax Permit Info for the FUTURE

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Evil Tax Permit Info for the FUTURE

Postby meauho » Sat Jun 09, 2012 11:07 am

*From the original Artist Alley Forums
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READ THIS POST before asking questions! They are probably answered here!

This list has been updated as of Jan.27.08 10:33 PM central

Q: Do I need a sales tax permit [for A-kon]?
A: YES!!!!! If you, and each person selling their own wares at your table do not have one, you will not be allowed to have a table. THIS IS SERIOUS. EVERYONE must have one. There are NO EXCEPTIONS, (Even if you do not sell items and are an organization or club, you will STILL need one!)
Technically you are ALWAYS supposed to have a sales and use tax permit, but only a few conventions, A-kon included, absolutely require you need one to have a table.

Q: Why do we need one?
A: Because the IRS and GOVT. are in charge, and A-kon will suffer if an auditor comes in and we have not done what we are required to by LAW!

Q: I have several people at my table, do they each need a permit of their own.
A: YES. This only applies to people SELLING stuff, not people helping you

Q: When do I need it by?
A: For A-kon 2008, you will need it immediately upon registering. If you or anyone selling wares at your table do not have one you CANNOT register! Everyone returning from 2007 should already have one.

Q: How do I get it?
A: You can either visit your comptrollers office and do it in person (if you want a special company name you have to visit your courthouse and get a DBA name taken care of FIRST), or use the online form, which I believe is this one: http://www.window.state.tx.us/taxinfo/t ... ap-201.pdf Etherealist had some useful info about this form

Q: How can I get in contact with the comptrollers office?
A: There's some contact info here, which will be useful for those out of state/country.

Q: What is a DBA name?
A: DBA stands for "doing business as," and is basically your company name. Some examples are Pan-Gaia, PinkFairyWand Creations, Raging Seagulls Studios, etc. If you want a special name such as this, you must visit your COUNTY court house and get one, and it does cost money, about 10-20 bucks depending on your county. If your company name includes your last name, such as if my studio name was instead Snail Art by Jacquelyn Stoner, you do not need to register it or pay money, and it's good to go.

Q: I don't live in Texas, where do I get a temporary sales tax id?
Q: I don't live in the United States, what do I do about a tax id then?
A: You just get a sales tax id like everyone else; there isn't really a temporary one as far as I know--but just tell them you're only doing business maybe once a year so that you only have to file yearly what you did at Texas conventions and that's it. There is a place on the tax form to cater to those that don't live in the US, so everyone fills out the same form, whether you aren't Texas, much less aren't US based.

Q: How much tax do I have to charge? Does this mean I have to calculate everything and deal with change? Do I also need to write receipts? :<
A: The sales tax for Dallas is 8.25%.

A:You do not have to add the tax to your products, but doing this means you have to pay the tax out of your pocket. If you make $100 without charging tax, that means you have to take $8.25 of that money and give it to Texas. Now if you'd charged sales tax, then the people that bought your stuff paid Texas, and you get to keep the full $100. However, charging tax can be a pain in the butt, so it's your call if you wish to deal with change or just include the tax with the price, but know that if you don't charge the tax, it will come from your revenue. A very good reference for sales tax prices by Hastur is here.

A super easy way to figure out what you owe is to never take money out of your cash box, factor out what you brought in change, and factor the sales tax of what money is in there. Example: you have 600 in your box, but you brought 50 in change, so you figure out what the tax would be for 550, and that's what you pay the state.

A: Receipts are helpful if you sell more costly items, and a death sentence if you have one dollar items, but not necessary in either circumstances. It's your call.

NOTE: when you are calculating the tax, you multiply by .0825, NOT .825. .825 means 82.5% =P If you're doing it by calculator and don't have a add sales tax feature, multiplying it by 1.0825 will give you the with tax value. Round numbers that come out funny, such as 1.0825 would be $1.08, and 2.165 would be $2.17.

Q: How often do I have to pay?
A: If you make below $1500 in SALES TAX (NOT REVENUE) you only have to pay yearly. If they set you up for quarterly (which they will unless you tell them otherwise), call them and tell them to cut that out. In order to make $1,500 in sales tax you'd have to make $18,181.82 in revenue, so most of us are only going to need yearly reports. (I did algebra for that number so I hope alot of you appreciate half-useless info)

Q: I'm under 18, what do I do?
A: You get your parent to sign the form.

Q: Can't you deduct stuff from how much you have to pay Texas?
A: edit: NO. This only applies to INCOME tax, as I've discovered. Keep your receipts of materials for that, though.

Q: What's this stuff about state and federal income tax?
A: I don't know, but it doesn't have anything to do with collecting sales tax.

Q: OK, I got the paper turned in, and they gave me something called a "taxpayer number," is that my sales tax id?
A. Yes.
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First things first:

Go here: http://www.window.state.tx.us/taxinfo/s ... iness.html

And download forms AP-157 and AP-215 (signature form)

For sales tax you will charge a TX base tax of 6.25%. Also you have to lookup the tax add-on for your county. Since you will be selling in Dallas you must use the Dallas Mass Transit Authority (MTA) add-on which is 1% (in addition to the base).

For all the questions on the form about business location, use your home address.

Your NAICS code should be 711510 (Independent Artists, Writers, and Performers).

Whether your business is located in a Transit Authority or Special Purpose District is based on where you live (your residence city and county). From the URL above there is a table of these for all of TX.

Even some of this stuff confuses me. Like when I first filled mine out, I think I listed Adams Mark as an outlet and filled out an outlet form for it. I later explained that I just sold at a convention there, and I don't remember if the Comptroller took it off or not.

I think I answered most of the questions that puzzled me last year. I just write all this because I was just as confused as you this time last year. Hope it helps.

For real, people, if any TX residents can add additional detail to this thread, I'm sure lots of noobs (and close-to-noobs such as myself) would be greatly appreciative.

--James

EDIT:

Looks like they changed it and the form is 201 now instead of 157.
http://www.window.state.tx.us/taxinfo/t ... forms.html

Here's a link to the rates info:
http://window.state.tx.us/taxinfo/local/rateinfo.html
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*NOTE: I will be cleaning up posts and clarifying them - along with updating them - once I get everything I can transferred.
meauho
 
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