When to file/pay state sales tax?

[Wyrd Wind]

To get to the point...

Will be registering an SMLLC in New Jersey.
Would I file/report sales tax to my state on a yearly basis or a quarterly basis? I'm looking at this calender and are unsure.

http://www.state.nj.us/treasury/taxa...alphasum10.pdf

Further information;
It will utilize drop shipping.
So, in short, all items delivered to my state of NJ would be subject to sales tax. That sales tax I collect will then be filed/payed to NJ.

Is this the gist?

Also, do tax forms and whatnot apply only AFTER I register my LLC for an EIN? Or does it all go into effect once my Articles of Organization are filed?

Any info you know of will be appreciated.

Cordially,
Wyrd Wind

[peteVA]

You are liable for sales taxes from the first sale, no matter what your form of business or licensing may be. You are making sales and you are expected to collect taxes, even with no license, etc.

AND - you are personally liable for any taxable sales made and the taxes not collected. They do not care if you collect them, or not. They are only concerned that you PAY them.

Most states the frequency of remittance depends on the amount collected in a given period. If you collect a lot, they will want it monthly, if not, probably quarterly. I do not know of any state where is is annual.

File for an account and you will be given all the specific details for your state.

[Wyrd Wind]

I can always count on you Pete.

And yes, I did some research last night, prior to reading this, and confirmed that for my state, we would file/pay on a quarterly basis, using Form ST-50, if the collected sales tax was less than $500/month.

Otherwise, we would file/pay on a monthly basis using Form ST-51.

Thank you for the additional information.

[bizdev]

Not sure if this is the case with all states, but the state gives you a schedule of payments due. As has been stated, it could be monthly, quarterly or yearly. Illinois is one state that has yearly for those that don't generate much sales. After you register with your state for the reseller number (or tax ID or whatever your particular state calls it), they should mail you the forms and it will indicate your schedule.

[Encrypted]

My simple solution.. go to H&R Block and they'll tell you everything you need to know.

[bizdev]

Uh, I wouldn't trust those fill-in-the-blanks places for anything other than a simple 1040.

[Encrypted]

Uh, I wouldn't trust those fill-in-the-blanks places for anything other than a simple 1040.

Whys that? They do this kind of crap for a living. And most of them have guarantee's that their filings are correct or they pay for the damages.

[bizdev]

When it comes to business matters especially, I would rather trust a "professional". Those places (and I'm not slamming H&R in particular) hire temps to do fill in the blank type work. I used to work with someone that worked for them every tax season for years. I once asked him a fairly simple question and he drew a blank because he couldn't just click and fill in the blanks.

[peteVA]

Encrypted, do you have any experience managing a retail business that is required to file SALES TAXES?

Most commercial tax preparers are not even open all year, let alone knowledgeable in filing sales taxes. They do INCOME TAXES, which are entirely different.

For the most part, every state's sales tax form is something like this -

Total sales for period
Less Exempt Sales
Total Taxable Sales

Then you multiply your total taxable sales by the tax rate and send it in.

Not a major challenge.

There are a few different things for some states.

Some ask if you removed goods from stock for business use and add that to the taxable sales.

Some pay the merchant a small amount for filling out the form, etc.

But basically it is total sales, less exempt sales, equals taxable sales and you pay the your state's rate of that total.

DOH!