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.
I know this question has been brought up a million times, but I can never seem to find an answer that makes me say "that completely makes sense and I no longer have any questions about that subject." Taxes. When to charge them for printing services, products, and design. It's very easy to work under the radar when you are a small setup. But as you grow, like I am doing now, you need to be more legit or it carries greater consequences.
My accountant tells me that we need to collect and report taxes on all the work we do. I know that is not 100% correct but I don't know enough about it to tell him how it works.
Can anyone give me a solid breakdown of when to collect and not collect taxes? And what do I need to do in order to accept tax exempt documents?
Of the 3 examples you gave; printing, products and design, 2 out of the 3 are definitely subject to tax. Only design, if billed separately and not a part of printing or design, is not taxable. It is considered professional services.