#89: What are my obligations for collecting sales tax?

Today’s not the most exciting topic, but it’s an important one! Do we coaches need to collect (and remit!) sales tax? Josh and Amelie discuss!

Top takeaways:

1. Some states charge sales tax on products, some charge sales tax on services…it’s important to figure out what your state policies are.
2. Go straight to the state website to get information, not blogs etc.
3. Make sure you ALSO check city and county taxes!
4. If your client is in a different state than you, then “economic nexus” applies which depends on how much business you do in that state.
5. If you have a legal, governmental license, you fall into the Professional Services category; if you are not licensed, you would fall into Personal Services.
6. Once you start approaching 50-60 transactions in a single state, make sure you start investigating tax rules in that state.

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