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This section of the forum is for discussing the business and finance issues of the t-shirt industry. Which business structure to use (sole proprietor, LLC, S Corp, etc), how to handle billing, where to register your business and get the proper licensing, etc.

tax in Pennsylvania



 
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Old June 21st, 2008 Jun 21, 2008 2:09:36 PM -   #1 (permalink)
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Default tax in Pennsylvania

hello Pennsylvanians

how does tax work on t-shirts in PA? I'm pretty sure there's no tax on clothing, so I should only have to file for income tax.
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Old June 21st, 2008 Jun 21, 2008 2:41:17 PM -   #2 (permalink)
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Default Re: tax in Pennsylvania

no tax on clothes in PA... yet
61 Pa. Code §*53.1.*Clothing.
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Old June 22nd, 2008 Jun 22, 2008 6:32:12 AM -   #3 (permalink)
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Default Re: tax in Pennsylvania

You probably still need to register with the sales tax people. Two reasons for this. First, you are a retailer and probably need to register just for that reason. Sales tax remittance forms gererally ask for Total Sales - Less Exempt Sales to give the Total Taxable Sales. In your case if all you ever sell is clothing your total sales and exempt sales would balance out to Zero, but you should still submit the form.

Second reason is that many suppliers will want your Sales Tax Exemption number in order to sell you at wholesale. Not all, but some.

Better to register and spend 5 minutes a quarter submitting an online form saying you owe nothing than to have them come looking for you.
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