sales tax help

[Bkillyn]

I heard theres this new thing for pay pal if you make 20,000 or 200 transaction you owe the government money.

If i add a sales tax account to my paypal like in this video "youtube search>> PayPal - Add Sales Tax" will that protect me from owing the government money?
If not what do i have to do to prevent myself from being a sheep to the wolvez


by the way im new to the site and i cant post links until after 10 post thats why put youtube search

 

[fataltone]

HOLY LAMB MEDIA & ENTERTAINMENT | HOLY LAMB MEDIA & ENTERTAINMENT | INTERVIEWS
would you like to be interviewed have a special skill such as audio engineering/sound design,licensing expert,SEO expert
please contact me for a interview
One free hour of training/consulting click on the banner in the sig.
The Walking On Water Media/Ent. Business Coach Antonio
Research and Information Gathering Expert
Building Relationships to Build Success
Get the Information and Direction You Deserve

 

[HIMbeats]

The pay pal thing is not new as far as I know this has always been the case....well at at least here in the states.

The sales tax laws are always changing so make sure you have a good accountant on your side...luckily I have my wife who is an accountant, but anyway yes you have to pay and charge sales tax on any internet sales inwhich you have a nexus to.

 

[fataltone]

The pay pal thing is not new as far as I know this has always been the case....well at at least here in the states.

The sales tax laws are always changing so make sure you have a good accountant on your side...luckily I have my wife who is an accountant, but anyway yes you have to pay and charge sales tax on any internet sales inwhich you have a nexus to.

man what a blessing having your wife being accountant


HOLY LAMB MEDIA & ENTERTAINMENT | HOLY LAMB MEDIA & ENTERTAINMENT | INTERVIEWS
would you like to be interviewed have a special skill such as audio engineering/sound design,licensing expert,SEO expert
please contact me for a interview
One free hour of training/consulting click on the banner in the sig.
The Walking On Water Media/Ent. Business Coach Antonio
Research and Information Gathering Expert
Building Relationships to Build Success
Get the Information and Direction You Deserve

 

[Bkillyn]

im sorry u guess not to be a headache im new to this...so sales tax do pay pal take it out of your sale or do u have to charge a little extra like when stores say 99 cent but tax is a penny so u pay 1 dollar is that simular to what i have to do with beats ,holy lamb check out my man Q the prophet gospel artist check out his videos on youtube

 

[fataltone]

I'm going to do a interview with a accountant for my interview section on my site and I'll make sure post a thread look for it soon


HOLY LAMB MEDIA & ENTERTAINMENT | HOLY LAMB MEDIA & ENTERTAINMENT | INTERVIEWS
would you like to be interviewed have a special skill such as audio engineering/sound design,licensing expert,SEO expert
please contact me for a interview
One free hour of training/consulting click on the banner in the sig.
The Walking On Water Media/Ent. Business Coach Antonio
Research and Information Gathering Expert
Building Relationships to Build Success
Get the Information and Direction You Deserve

 

[bandcoach]

im sorry u guess not to be a headache im new to this...so sales tax do pay pal take it out of your sale or do u have to charge a little extra like when stores say 99 cent but tax is a penny so u pay 1 dollar is that simular to what i have to do with beats

You need to make certain that you put the money aside and forward monthly or quarterly to the IRS/Tax Office/....

You also need to find out what % of your total charge your sales tax needs to be so that you don't get caught out....

i.e.
If Sales Tax is @ 5% of product cost then,


if you sell a

• Product for $X
  • Sales Tax is $X/20,
• Total Cost is $(X+(X/20))

Putting some numbers into the equations,

You sell a beat for $100.

• You need to either
  • add Sales Tax of $5 to the cost
  • Total Cost including Sales Tax is $105
• or
  • put aside Sales Tax of $100/21 = $4.76,
  • Meaning you make $95.24 on your beat.

 

[fataltone]

You need to make certain that you put the money aside and forward monthly or quarterly to the IRS/Tax Office/....

You also need to find out what % of your total charge your sales tax needs to be so that you don't get caught out....

i.e.
If Sales Tax is @ 5% of product cost then,


if you sell a

• Product for $X
  • Sales Tax is $X/20,
• Total Cost is $(X+(X/20))

Putting some numbers into the equations,

You sell a beat for $100.

• You need to either
  • add Sales Tax of $5 to the cost
  • Total Cost including Sales Tax is $105
• or
  • put aside Sales Tax of $100/21 = $4.76,
  • Meaning you make $95.24 on your beat.

there you go FP Fam..soak this one up
we need a stickie with just solid business quotes from FP members
moderators how can we do this

 

[HIMbeats]

Great advice from Bandcoach that you should copy and paste to a .doc that you can keep on your desktop as a reminder.

I have said this many, many, many times in the past, but I will say it once again.......music folks generally make HORRIBLE business people.

If you set up your pricing properly all of these factors will be build into the retail price. It doesn't matter if you sell hotdogs or beats you should know your true cost and taxes factor into this price. You can't just pull your pricing out of you know where and say..."okay this is the price". Your pricing for whatever you are selling should come from a number that makes sense. See this is why folks that sell $5 beats or whatever aren't figuring in the true cost of the product.

To figure out your pricing on a product or service you need to shoot for one of 3 numbers....Direct cost margin, break even pricing or profit pricing (notice that there is NO lose money price points here)

FOR PROFIT= THE BEST
FOR DIRECT COST MARGIN = GOOD
FOR A BREAK EVEN POINT = NOT GOOD (but a necessary evil of doing business but do this too much and you won't be in business for long.....You should never operate BELOW this margin....ever!)

Pricing stuff for profit is the best way to sell. This is where you make maximum profit. To get this number you need to know your direct cost, fixed cost and target profit margin. You target profit is decided by what the market will give you and what you want to make.

If it cost me 4 dollars to make a hotdog here in Seattle and I want to make 3 dollars on every dog, as long as the market will allow it I could sell my hotdogs for 7 dollars each. Now if I move to New York and hotdogs sell for 5 dollars there I would need to change my cost (direct and fixed) or change the amount of profit I want to match the 5 dollar NY price point.

Next is pricing for direct cost margin. Your direct cost margin is your price minus your cost (both direct and fixed) Fixed cost are things like insurance, taxes, leases, etc.....basically things you have to pay no matter if you are busy or business is slow. With this pricing structure every product should have an exceptable margin you can work with.

Last and surely least is pricing for your break even point. Your break even cost equals all your cost related to a product. Basically you are selling the item or service at cost. This is not where you want to be but it happens.

Anyway, if you price things correctly you will never have things pop up that you don't know about and you will always know the lowest price you can sell something at. Not every sale is a good sale and sometimes you just have to walk away and say I can't do it at that price. Those that just try to sell things at their rare bones cost don't last long in business and they are not making the money they could be.

Good luck my friend

-Alex

 

[fataltone]

I have already copied it

HOLY LAMB MEDIA & ENTERTAINMENT | HOLY LAMB MEDIA & ENTERTAINMENT | INTERVIEWS
Would you like to be interviewed have a special skill such as audio engineering/sound design,licensing expert,SEO expert
please contact me for a interview
One free hour of training/consulting click on the banner in the sig.
The Walking On Water Media/Ent. Business Coach Antonio
Research and Information Gathering Expert
Building Relationships to Build Success
Get the Information and Direction You Deserve​

 

[HIMbeats]

man what a blessing having your wife being accountant


HOLY LAMB MEDIA & ENTERTAINMENT | HOLY LAMB MEDIA & ENTERTAINMENT | INTERVIEWS
would you like to be interviewed have a special skill such as audio engineering/sound design,licensing expert,SEO expert
please contact me for a interview
One free hour of training/consulting click on the banner in the sig.
The Walking On Water Media/Ent. Business Coach Antonio
Research and Information Gathering Expert
Building Relationships to Build Success
Get the Information and Direction You Deserve

I blessing and a curse tone...lol...she checks my books every 3 months and if it is not right then I gotta hear her mouth..lol. Yeah she is the controller for the company she works for so she is not a business accountant but she helps me with the books for my business which keeps me straight for sure. Now as a wife.....yes she is a blessing to me 100%!

 

[fataltone]

I blessing and a curse tone...lol...she checks my books every 3 months and if it is not right then I gotta hear her mouth..lol. Yeah she is the controller for the company she works for so she is not a business accountant but she helps me with the books for my business which keeps me straight for sure. Now as a wife.....yes she is a blessing to me 100%!

I hear that you have me over here chuckling lol
I know the feeling wife is a blessing..my wife is helping me put together my office and studio up again at the new home and she is a neat freak which is like but I try not to be because it is a big help to me got up my acoustic treatment and my equipment is up just some more organizing and I'll be done by this weekend

HOLY LAMB MEDIA & ENTERTAINMENT | HOLY LAMB MEDIA & ENTERTAINMENT | INTERVIEWS
Would you like to be interviewed have a special skill such as audio engineering/sound design,licensing expert,SEO expert
please contact me for a interview
One free hour of training/consulting click on the banner in the sig.
The Walking On Water Media/Ent. Business Coach Antonio
Research and Information Gathering Expert
Building Relationships to Build Success
Get the Information and Direction You Deserve​