Those Dreaded Taxes

As the saying goes, two things in life are inevitable - death and taxes. In addition to filing your tax return yearly, you will need to obtain an employer identification number in order to withhold and report payroll taxes if you plan to hire employees. Check with your local accountant or tax preparer for requirements of the IRS.

Likewise, almost all states require that sales tax be collected for each sale of an item. Depending on your state and local government, these taxes may range from 2% to 9% of the sale. Call your state’s Department of Revenue for requirements that are specific to your state or local area. There may be a local tax office in your area. In addition, ask your state’s Department of Revenue how you can qualify for tax-exempt purchases for items that you plan on reselling (sugar, cups, ice, flavor etc.) Most like you will be assigned a tax-exempt number so you can use to purchase tax-free items.