Business Tax Registration
A business must obtain a sales tax license by registering with the Department of Revenue if it’s making sales of tangible personal property and taxable services (such as telephone and telegraph). A business should also register with the department if it is a corporation responsible for paying corporate and/or franchise tax or if it has employees and is required to remit withholding tax. Also, a business selling batteries and/or new tires should register to collect and remit a fee to the department. To register a business, submit a Missouri Tax Registration Application (Form 2643).
A business making retail sales must post a bond equal to three times the average monthly sales and use tax. A beginning photographer running a home based business would be required to make a $25.00 Cash Bond with their application.
*****Important: IF YOU ARE MAKING RETAIL SALES WITHOUT A VALID MISSOURI SALES TAX LICENSE, YOU ARE IN VIOLATION OF MISSOURI LAW. YOU MAY BE QUILTY OF A MISDEMEANOR AND PENALIZED UP TO $10,000.*********
Sales Tax
How Much Do I Charge??
The exact amount of SALES TAX you will collect is detemined by the legal address of your business. You can calculate the amount you have to pay here. http://www.dort.mo.gov/tax/business/sales/taxcards/
What do I collect sales tax on??
EVERYTHING
There used to be some debate about what to charge sales tax on, but today the besy answer is to charge sales tax on everything, sitting fees prints, albums ….everything.
Helpful Links
Missouri Online Business Registration
“The Missouri Department of Revenue and the Department of Labor and Industrial Relations, Division of Employment Security, want to make starting your business as easy as possible. Online registration is part of our combined effort to simplify your registration process and help you get your business started and on the road to success! “
“You may be required to obtain a Federal Employer Identification Number (FEIN). The FEIN is issued by the Internal Revenue Service (IRS). The FEIN is used to identify taxpayers who are required to file various business tax returns.”
Federal Employer Identification Number (FEIN)
You need an EIN if you:
- Started a new business
- Hired or will hire employees, including household employees
- Opened a bank account that requires an EIN for banking purposes
- Changed the legal character or ownership of your organization (for example, you incorporate a sole proprietorship or form a partnership)
- Purchased a going business
- Created a trust
- Created a pension plan as a plan administrator
- Are a foreign person and need an EIN to comply with IRS withholding regulations
- Are a withholding agent for taxes on non-wage income paid to an alien (such as an individual, a corporation, or a partnership)
- Are a state or local agency
- Formed a corporation
- Formed a partnership
- Administer an estate formed as a result of a person’s death
- Represent an estate that operates a business after the owner’s death.
This page has the following sub pages.
I hate sales tax….my roommates an accounting major!
Thank you for looking into this topic and adding it to your teaching schedule.
Check out the information on the Missouri DOR web site at:
http://dor.mo.gov/tax/rulings/LR3714.htm