Sales Tax Permit

Obtain a Sales Tax Permit for your business with Getting Incorporated™'s Sales Tax Permit service. A Sales Tax Permit is a legal requirement for a business to sell products or services. Obtaining a Sales Tax Permit registers your business with the proper Tax Authorities, and allows you to legally make taxable or tax exempt sales. Even if you consider your sales exempt from sales taxes, a Sales Tax Permit is still necessary in order to obtain the official certificate of exemption required. If you are a reseller, a Sales Tax Permit is particularly useful in giving you the capability to obtain products at wholesale without being obligated to pay sales tax or retail prices. Getting Incorporated™ can obtain a Sales Tax Permit for your business.

Business Law Update:

Missouri

SB 1062

This act modifies the manner in which certain business organizations may file with the Secretary of State. The Secretary of State has the authority to establish a special handling and expedited services program. These services allow customers to purchase services that guarantee rapid processing on filings or other special handling. A limited liability corporation may electronically file its original articles of incorporation for a fee of $45 rather than the $100 currently required for paper filings. This act allows a corporation to change the filing month for its corporate registration report in return for an additional $20 filing fee. Corporations may also opt to file the corporate registration report biennially rather than annually. The filing fee for choosing this option will be twice the fee currently required for filing annually. The Secretary of State may collect an additional $10 fee, for deposit in the Secretary of State technology fund, for each biennial report . If the corporate registration report is not filed within 90 days, the Secretary of State may proceed with corporate dissolution. This act is similar to SB 875 (2006), and SB 368 (2007). Current Bill Status: February 4, 2008 Second Read and Referred Judiciary and Civil & Criminal Jurisprudence Committee.

Start Up Tip:

Reasonable Compensation in an S Corp

S-Corporation's which file their 1120S with $0.00 showing on Line 7 "Compensation of Officers" are increasing their risk of IRS audit. The IRS takes the position that no one works for free, and has said repeatedly that officers must be paid reasonable wages for the work they perform. Owner-employees of S-Corporation must receive a reasonable payroll taxable salary for their duties, even if the business is losing money. The upside is that in loss years S-Corps can deduct their officer pay to maximize the loss, and in profitable years gains are maximized as money Owner/Employees make above and beyond the reasonable salary can be taken out without a payroll tax liability, while the salary itself is a deductible expense.

[Sales Tax Permit]

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