Sales Tax Problems Lawyers in St. Louis Helping You Reach Favorable Resolutions
If you own a business in Missouri, you are required to collect and pay sales tax on any taxable goods or services you provide to your customers. Falling behind on your sales tax payments or miscalculating them can lead to severe consequences, including losing your business license. It’s essential to reach out to a professional for help immediately if you’ve run into any tax discrepancies.
Our team at The Law Firm of Lance R. Drury, P.C. has experience handling sales tax problems for business owners. We can help you negotiate with the state of Missouri and make a plan to pay back taxes without losing your business license or going into further debt. For a free consultation and to learn more about our services, call one of our offices today: Ste. Genevieve, (573)-883-3056; St. Louis, (314)-260-6120; Nashville, (615)-733-8168; and San Antonio, (726)-202-1300.
Does My Business Need to Pay Sales Tax?
Not all businesses are required to collect and pay sales tax. However, most businesses that provide goods or services do need to pay sales tax.
Here are a few questions to ask yourself to determine if your business is required to pay sales tax:
- What is your business’s nexus? Nexus is anywhere that your business has a presence. This always includes your physical location where you live and conduct business. It can also include additional physical locations, employees who live in other states, or contractors who live out of state.
- Does your local jurisdiction require you to get a sales tax permit? Registering with the Missouri Department of Revenue is an easy way to find this out.
- Are your products or services taxable? There is a long list of taxable goods and services that you can collect sales tax from. If you sell taxable goods and services, you likely need to collect and pay sales tax.
Some businesses are exempt from paying sales tax at all. These businesses include educational centers, religious organizations, charities, scientific or literary organizations, companies that foster certain national or international sports competitions, organizations that test for public safety, and organizations that prevent cruelty to children or animals. You must apply for nonprofit status on the IRS website to gain tax-exempt status.
If you’re still uncertain whether your business needs to pay sales tax, contact a tax attorney on our team for clarification.
How Does My Business Collect Sales Tax?
Once you’ve determined that your business must collect and pay sales tax, you need to figure out how to collect that tax from your customers.
There are some goods and services that are not taxable, but for the most part, products and services in the following categories are eligible for sales tax collection:
- Motor vehicles
- Home appliances
- Gardening items
- Rental Properties
- Raw materials
- Personal property services
- Property maintenance services
- Business services
- Personal services
To collect sales tax, you can add it to each item or calculate it by total. The state of Missouri, as well as your municipality, will tell you how to calculate sales tax when you apply for a sales tax permit.
Most states offer sales tax exemptions on items considered necessities, like food or medical devices. These items are often taxed at a lower rate.
What Sales Tax Issues Typically Arise for Business Owners?
Managing your tax obligations as a business can be a complex process. Non-compliance, even unintentionally, can have serious consequences for you and the status of your business. Having a professional tax attorney on your side is the best way to avoid making mistakes so you can protect your business.
Below are some common pitfalls that typically arise for business owners:
Not Understanding Nexus
Many business owners understand that they have to pay sales tax in the state where they are physically located. However, some business owners are unaware that they may have to pay sales tax for other states where their employees live or where their additional physical locations are.
Falling behind on your taxes can come with fines and penalties that may add up to more than you originally owe. If you’ve fallen behind on the taxes for your business, reach out to a member of our team today. We will help you negotiate with your state government and come up with a payment plan that works for your financial situation.
Obtaining Exemption Certificates
If your business is not required to pay sales tax, you must register with the IRS and your state. Simply not paying sales tax can lead to fines and penalties. Contact our team today to see if you qualify for an exemption and how you can receive that status.
Breaking Down Rates
Sales tax doesn’t just include the state rate. It can also include the local tax rate and the tax rate of the destination of the sale. Tracking and complying with these rates is paramount when paying sales tax for your business.
How Can a Sales Tax Problems Lawyer Help Me?
Paying taxes for a business is a complicated process, and it becomes even more complex when sales tax is involved. Stay caught up on your sales tax responsibilities to avoid severe consequences, including losing your business license.
Don’t let a sales tax obligation stand in the way of your successful business. At The Law Firm of Lance R. Drury, P.C., we are dedicated to walking our clients through sales tax responsibilities to ensure their businesses can succeed. And if you’ve fallen behind on your taxes or have a unique tax situation, we are here to help with that too. Call one of our offices today for a free case evaluation: Ste. Genevieve, (573)-883-3056; St. Louis, (314)-260-6120; Nashville, (615)-733-8168; and San Antonio, (726)-202-1300.