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How to approach US taxes

by Noirmaybe
6 replies
Do you charge clients taxes for yours services? I know it's varies from state to state, but does anyone know about Michigain? Web development and SEO work are considered services not products, so I'm thinking no. But I read that services delivered can be deducted from taxes as "Advertising Expense", if this is the case wouldn't I add the taxes?
(Is Website Design Tax Deductible for Small Business? )

Sorry for so many questions, I'm new to local marketing and I want to make sure I do things right.
#taxes
  • Profile picture of the author somacorellc
    Make an appt with a local tax guy. This will probably be free and they can answer any questions you have.
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    • Profile picture of the author DebbieB
      Absolutely don't rely on the advice you receive here for such an important issue.

      You need to speak to an accountant or a tax lawyer who is familiar with your particular situation.


      Debbie
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      • Profile picture of the author Kay King
        Are YOU in the US? If not, don't worry about US taxes. If you sell on a site that has to collect taxes - they'll tell you about it or will add on the taxes.

        I read that services delivered can be deducted from taxes as "Advertising Expense", if this is the case wouldn't I add the taxes?
        No - you have that wrong. Totally different things.

        EDIT: I am not a tax expert. Any taxes collected must be paid to the proper govt entity (state and/or federal) and proper documentation must be filed.
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  • Profile picture of the author SirThomas
    You should find the answers on Michigan State Revenue site. Or you can call them to find out.

    In Washington State, there is no sales tax on website design, but it may be different where you live, but I doubt it...


    Thomas
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    • Profile picture of the author Kay King
      You've edited your original post now to add your location and it makes more sense that way. Michigan has a tax law site - the IRS has plenty of info on its site about what a tax "deduction" is.

      The link you added is a good one about deductions - but that has nothing to do with whether you - as a seller - need to collect taxes.

      If you are doing local business now - look at your local and state laws or talk to a local tax expert. Every state is different in tax laws and you seem to be confusing federal income taxes with state sales taxes. One session with a tax expert would get you set up right.

      kay
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      Live life like someone left the gate open
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  • Profile picture of the author kymobilemedia
    For me, I did an LLC, and plan on putting all of my income and expenses on my personal income.

    My advice is to talk to an accountant and tell them what you are doing, and what they suggest you set aside for tax purposes. I have a 15% self employment tax, so I will be sitting back 20% of all income just to be on the safe side.

    Thanks
    Jason
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