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Moe Egan 4 Large

Joined: 11 Sep 2006 Posts: 4339 Location: Live Free or Die
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Posted: Mon Sep 22, 2008 1:36 pm Post subject: |
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What about us crotchety old chicks? _________________ Moe Egan
i want to be the voice in your head.
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CarynClark MMD

Joined: 28 Feb 2007 Posts: 2697 Location: Fort Myers, FL
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Posted: Mon Sep 22, 2008 1:44 pm Post subject: |
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LOL.
Well, I'd be happy to pay if my accountant had said I needed to. _________________ Caryn Clark... The Hip Chick Voice!
"A positive mental attitude and having faith in your ability is quite different from being irresponsible and downright stupid." - Dave |
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todd ellis A Zillion

Joined: 02 Jan 2007 Posts: 10537 Location: little egypt
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Posted: Mon Sep 22, 2008 8:49 pm Post subject: |
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check your local listings - but i don't have to charge/pay sales tax unless i sell a product (hardware) within the state of illinois ... the service of voiceover is not taxed. _________________ "i know philip banks": todd ellis
who's/on/1st?
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Jeffrey Kafer Assistant Zookeeper

Joined: 09 Dec 2006 Posts: 4931 Location: Location, Location!
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Posted: Mon Sep 22, 2008 9:12 pm Post subject: |
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I don't understand that, Todd. If you get your car fixed, do you pay sales tax even though it's service? Why would VO be different? _________________ Jeff
http://JeffreyKafer.com
Voice-overload Web comic: http://voice-overload.com |
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SkinnyJohnny Backstage Pass

Joined: 12 Aug 2007 Posts: 462 Location: Asheville, NC
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Posted: Mon Sep 22, 2008 9:16 pm Post subject: |
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If I remember right, for car repairs in Florida, the PARTS were subject to sales tax but the LABOR was not. So you would receive two seperate invoices, one for parts and the other for labor.
Also, certain services were exempt and others were not. They'll get you one way or another!  _________________ John Weeks Voice Overs
www.johnweeksvoiceovers.com |
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Lee Gordon A Zillion

Joined: 25 Jul 2008 Posts: 6868 Location: West Hartford, CT
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Posted: Tue Sep 23, 2008 3:55 am Post subject: |
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Here in CT there's a long list of services included with business tax forms. Some are taxed while others are not. A couple of years ago, voice over and other advertising services were added to the list of taxed services but, for some reason, at a rate of 3% while the sales tax for just about everything else is 6%. And this made no sense: the tax applied only to work done for in-state clients. Not only was the tax an extra burden on those of us who had to collect and pay it, but it encouraged people to take their business to ad agencies in other states.
When I contacted my state senator to complain about the tax, he responded by saying he was working on getting it repealed. I thought to myself, "Sure -- like that'll ever happen." But, amazingly, the legislature actually did rescind the tax after just one year. _________________ Lee Gordon, O.A.V.
Voice President of the United States
www.leegordonproductions.com
Twitter: @LeeGordonVoice
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Frank F Fat, Old, and Sassy

Joined: 10 Nov 2004 Posts: 4421 Location: Park City, Utah
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Posted: Tue Sep 23, 2008 4:13 am Post subject: |
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In some states, such as Utah, tax is not (supposed to be) applied to services. Just products only. So, if you do a VO or a car repair, but do not have any parts - there is no tax applied. However, if you throw in a CD or a printed copy of the script - or any tangible goods; then you apply the tax to the merchandise ONLY.
However, now you know the law, just how many apply sales tax on services? Most. Life is interesting is it not?
Toodles
F2 _________________ Be thankful for the bad things in life. They opened your eyes to the good things you weren't paying attention to before. email: thevoice@usa.com
Last edited by Frank F on Wed Sep 24, 2008 3:28 pm; edited 1 time in total |
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todd ellis A Zillion

Joined: 02 Jan 2007 Posts: 10537 Location: little egypt
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Posted: Tue Sep 23, 2008 4:39 am Post subject: |
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same in illinois - parts yes. service no. _________________ "i know philip banks": todd ellis
who's/on/1st?
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mediaking Contributor

Joined: 20 Aug 2005 Posts: 33 Location: Earth...this week
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Posted: Wed Sep 24, 2008 2:54 pm Post subject: |
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Here's my two cents:
According to our county clerk, the only time one would need to register their business is when the expected income from said business is above a certain level (exact amount escapes me now). Otherwise it wasn't necessary.
As far as the bank account goes, what I found was you can open a simple personal checking account and file a "Doing Business As" form. with the bank.
That's how it is in Tennessee. YMMV. Free advice - it's worth the price.
JCL _________________ www.jclsound.com
Hear It Right. Now. |
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louzucaro The Gates of Troy

Joined: 13 Jul 2006 Posts: 1915 Location: Chicago area
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Posted: Wed Sep 24, 2008 3:10 pm Post subject: |
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Jeff, I think one of the main things to consider is that if you set up your business properly, you can remove some of the liability for things that was mentioned earlier in the thread, so that if, for whatever goofy reason, you do get sued or whatever, it doesn't affect you personally.
Other methods of setting up a business don't offer that protection.
It all boils down to what's important to you.
Plus, consider that you can incorporate in a state ouside of where you are. Maryland, for instance, is popular with a lot of businesses because of some of their particular business laws. But they have some requirements that are more suitable to big businesses than smaller ones, etc., so it helps to have your business set up by somebody (accountant or lawyer) familiar with all of that stuff to make the best choice for you and what you want. _________________ Lou Zucaro
http://www.voicehero.com
"Well, yeah, there's my favorite leaf!" |
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Jeffrey Kafer Assistant Zookeeper

Joined: 09 Dec 2006 Posts: 4931 Location: Location, Location!
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Posted: Wed Oct 08, 2008 1:26 pm Post subject: |
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resurrecting this thread. I got confirmation about sales tax in Washington state for anyone interested. This comes from the Department of Revenue:
| Quote: | Facts:
I’m starting a home-based business that offers audio production services. This work will be done in my home studio in Washington, but most of my clients will be out of state and receive digital non-tangible audio over the Internet. Is this a service I should charge Washington sales tax on?
Answers:
An amount charged to produce a one of a kind audio production file for a client is not subject to sales tax. We assume you are creating an audio file used as background music or a commercial advertisement. However, charges to produce such a file are subject to business and occupation (B&O) tax under the service and other activities classification. As a professional service business you are subject to B&O tax based on the location of where the work is performed not the location of your customers/clients. Therefore, no deductions are allowed if the file is delivered to your customer outside the state of Washington.
Based on the information provided, it is difficult to determine if you will also receive royalty payments or a commission depending on the use of the developed audio production. If you will receive royalties, such payments are subject to B&O tax under the royalties’ classification. Additional commission payments are subject to B&O tax under the service and other activities classification. |
_________________ Jeff
http://JeffreyKafer.com
Voice-overload Web comic: http://voice-overload.com |
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Eddie Eagle M&M
Joined: 23 Apr 2008 Posts: 2393
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Posted: Wed Oct 08, 2008 9:50 pm Post subject: |
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Hi Jeff,
I'm in WA also. The state bus lic allows you to write off a percentage of your home as a deduction that is proportionate in size up to I believe 15% of the sq footage of your home if your office/studio is that big. You'll have to fill out quarterly state filings. That can be done online. Also you may have to have a city license. I do. About $50 a year.
If your business is classified as a distributor of audio any interstate business is deductable. Is your business a service provider or a distributor? Any business sold within the state is subject to B&O. Call or email and I can explain.
Hope that helps.
Eddie |
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