Do you have a firm grasp on sales tax and your business?
Sales tax is a mother and it’s super important that you’ve considered it. It can either seem deceptively easy so you ignore it, or it can be totally overwhelming. Sales tax is a widely neglected area that is majorly important and constantly changing, especially if you sell products online – that goes for tangible products (ones you can touch) or digital ones.
Lots of people have confusion here, so I’m going to provide some clarity regarding sales tax basics for busy entrepreneurs in this article.
If you're brand new to business and need a place to start, be sure to grab my free Starting a Biz Checklist that has 12 action steps to prevent you from making mistakes that can cripple your business.
Also, check out the following blogs that help you take fear out of the numbers side of your biz, save money and stay out of trouble:
As a CPA, I worry about entrepreneurs more than ever.
One thing I’ve noticed when talking to a lot of entrepreneurs is they aren't all sure that’s what they are. So, let me clarify – if you make any side income that doesn’t go on a paycheck with taxes taken out – you are self-employed!
This goes for people who drive for Uber, deliver for Instacart, sell products through a direct sales or MLM company, sell items on Esty (or any other online platform), and so on. If you earn money directly from your own customers or clients or if you receive a 1099 at the end of the year because you were paid as an independent contractor – you are self-employed as far as the IRS is concerned, and there’s definitely more to it than the simplicity of being an employee.
Being self-employed is amazing and I’m a passionate supporter of entrepreneurship. I love seeing people believe in themselves, take a leap of faith and put...
So you started out in business on your own?
I've been in your shoes. Entrepreneurship gives you all the emotions. Excitement, fear, anxiety, empowerment. You're learning new things every day and hustling hard to get your product or service out to the world and start bringing in the moo-lah so you can pay the bills and work towards financial freedom.
It's busy. It's exciting. And it can be really overwhelming.
Am I right?
If you're like most of my friends starting out on their own, I bet there's one part of your business that's hanging out on the back burner - the numbers side of things.
Look - I get it. The numbers side of your business isn't the fun part. It's not your passion, it's not going to get you any likes or attention, and it seems like it can wait. It's easy to neglect, especially if it overwhelms you as it is.
Waiting around does not make this responsibility go away. If you're neglecting the...
BUT THAT LEADS TO...
💰Getting hit with hefty penalties and interest
⌛️Wasting your valuable time
🤯Stressing out over handling the mishap
🥴Lacking insight on how your business is doing and thus making poor business decisions.