How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Lane Your Own Question

Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 4177
Experience:  Juris Doctorate, CFP and MBA, Providing Financial & Tax advice since 1986
1929974
Type Your Tax Question Here...
Lane is online now
A new question is answered every 9 seconds

What are my tax obligations (sales/use) if I charge for membership

Resolved Question:

What are my tax obligations (sales/use) if I charge for membership to my website? Professional trainers will pay to list/link their businesses/classes/services, and that information will be free for the public to search and use.
Submitted: 1 year ago.
Category: Tax
Expert:  Lane replied 1 year ago.

NPVAdvisor :

Hi, more than likely you have no obligation it depends on the state, but only 2 states charge sales tax on ANY sort of PROFESSIONAL services

NPVAdvisor :

Can you tell me what state you're in?

NPVAdvisor :

excuse me, I just checked and that number is XXXXX

NPVAdvisor :

here's a site from, based on NAIC, by state (









Federation of Tax Administrators
NPVAdvisor :

Als, here's a searchable database, by state, by business code (updated for 2010)

NPVAdvisor :

Here's an article from bizfilings.com on sales taxation of services:

NPVAdvisor :


Currently, many states exclude service providers from sales and use taxes. However, a number of state lawmakers have begun to re-examine the exclusion of service from sales tax liability because they realize that a potentially large source of revenues is going uncollected. So as you might expect, these lawmakers are working on changing their laws to treat some, if not all, services as taxable.

NPVAdvisor :

.

NPVAdvisor :

And here's an excellent listing BY STATE (51 jurisdictions) of what sales and use taxes are imposed

NPVAdvisor :

Hope this helps

NPVAdvisor :

Lane

NPVAdvisor :

If this HAS helped, I would appreciate a feedback rating of 3 (OK) or better. That's the only way they will pay us here.



HOWEVER, if you need more on this, PLEASE COME BACK here, so you won't be charged for another question

Expert:  Lane replied 1 year ago.
Our chat has ended, but you can still continue to ask me questions here until you are satisfied with your answer. Come back to this page to view our conversation and any other new information.

What happens now?

If you haven’t already done so, please rate your answer above. Or, you can reply to me using the box below.
Customer: replied 1 year ago.
I'm in Texas. I haven't formed an LLC yet. I wanted to find the answer to this to help me determine if I should inc in TX or another state. What are the six states? I'm not at my PC, using my phone to check answer.
Expert:  Lane replied 1 year ago.

Just saw your reply.

Will get. Give me a sec
Expert:  Lane replied 1 year ago.

My apologies, as of the 2007 table there are 7 that tax PROFESSONAL, as I mentioned, services.

Those seven, not six, are the following (the number beside the state is the NUMBER of services (categorized as professional) that the state taxes.


Delaware 9
Hawaii 9
New Mexico 9
South Dakota 5
Texas 1
Washington 9
West Va 1


Texas specifically:

In Texas, a tax is imposed on the sale at retail of taxable items and upon the storage, use or other consumption in the state of taxable items purchased, leased or rented from any retailer for storage, use or other consumption in Texas.

 

Taxable items are tangible personal property (including computer programs).

 

Taxable services include the following:

  • amusement services
  • cable television services
  • personal services
  • motor vehicle parking and storage services
  • repair, remodeling, maintenance and restoration of tangible personal property
  • telecommunications services
  • credit reporting services
  • debt collection services
  • insurance services
  • information services
  • real property services
  • security services
  • data processing services
  • real property repair and remodeling services
  • telephone answering services
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 4177
Experience: Juris Doctorate, CFP and MBA, Providing Financial & Tax advice since 1986
Lane and 6 other Tax Specialists are ready to help you
Expert:  Lane replied 1 year ago.

Thanks so much!




To ask for me again, just go here: NPVAdvisor



And enter your question in the question box



Thanks again,

Lane



JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
< Last | Next >
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
  • I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight. Bonnie Chesnee, SC
  • Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation. John Minneapolis, MN
  • Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with. Orville Hesperia, California
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex Los Angeles, CA
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP Hesperia, CA
 
 
 

Meet The Experts:

 
 
 
  • Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    570
    10 years experience
< Last | Next >
  • http://ww2.justanswer.com/uploads/KU/KUMI95/2013-9-30_195031_kumar.64x64.jpg Wallstreet Esq.'s Avatar

    Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    570
    10 years experience
  • http://ww2.justanswer.com/uploads/CU/Cuttinggirl/2011-10-29_03719_wcrop2.64x64.jpg Wendy Reed's Avatar

    Wendy Reed

    Enrolled Agent

    Satisfied Customers:

    3052
    15+ years tax preparation and tax advice.
  • http://ww2.justanswer.com/uploads/CATax/2009-08-04_204548_Mark.jpg Mark D's Avatar

    Mark D

    Enrolled Agent

    Satisfied Customers:

    985
    MBA, EA, Specializing in Business and Individual Tax Returns and Issues
  • http://ww2.justanswer.com/uploads/IN/insearchoftheanswer/2013-8-16_0233_attorney.64x64.jpg Richard's Avatar

    Richard

    Tax Attorney

    Satisfied Customers:

    3229
    29 years of experience as a tax, real estate, and business attorney.
  • http://ww2.justanswer.com/uploads/MY/MyVirtualCPA/2012-7-5_44024_cookmegan1.64x64.jpg Megan C's Avatar

    Megan C

    Certified Public Accountant (CPA)

    Satisfied Customers:

    6121
    Licensed CPA, CFE, CMA who teaches accounting courses at Master's Level
  • http://ww2.justanswer.com/uploads/JG/jgordosea/2012-6-7_43138_GordosVeritas.64x64.jpg jgordosea's Avatar

    jgordosea

    Enrolled Agent

    Satisfied Customers:

    2783
    I've prepared all types of taxes since 1987.
  • http://ww2.justanswer.com/uploads/OZ/ozaukeecpa/2012-6-7_193219_Picture1croppedandshrunk.64x64.jpg MequonCPA's Avatar

    MequonCPA

    Certified Public Accountant (CPA)

    Satisfied Customers:

    2231
    CPA, Over 30 yrs experience w/individuals and small businesses. Masters in Tax.