For nearly 4 months I’ve been posting excerpts from a presentation I give to entrepreneurs trying to get businesses off the ground. Because the posts are scattered across many weeks, this post serves as a reference point to pull them all together. Part 1: Proper Recordkeeping Part 2: Scanned Copies of Receipts Part 3: Bookkeeping […]
The biggest question to answer when it comes to operating in other states is to determine if you’re “doing business” in another state. In general, if you’re “on the ground” in another state providing a service or selling your product, you probably have a business presence in that state.
For a business in Iowa, the basic sales tax rate is 6%. Some locations in Iowa also assess an additional 1% “local option sales tax,” which makes the sales tax in that location 7%. Sales tax is not an expense of your business. Instead, it’s a tax you collect from your customers and pass on to the state.
Now and then clients or friends will ask me if I fear various proposals to simplify the tax system, such as a nationwide sales tax. They ask if I’m afraid of becoming obsolete because of a “simplified” tax system. My answer is always “no,” for several reasons.
Tax-exempt organizations are exempted from paying income tax and federal unemployment tax… but they might have other tax liabilities that they’re responsible for.
Sales tax refers to a tax levied by a state on the sale of certain goods and services. Different states have different tax rates and different rules on what is subject to sales tax.
Basic overview of Iowa sales tax for new business owners.