Sales Tax

[Jessica1894]

Is an LLC required to charge sales tax to client?

[bkaytaxes]

Greetings @Jessica1894 ,

Yes, as an LLC, you would be required to collect sales tax and pay it to your state, but only if your state requires you to.  Sales tax is only collected on taxable goods if you live in a state that charges sales tax.   And there are many factors like the location of your business and the type of goods you sell.  There are a few states that you don't need to collect sales tax:  Alaska, Delaware, Montana, New Hampshire, and Oregon.  For the other states, there are some exemptions that are unique to each state.  To find your specific state, go here and under the Department of Revenue area, look for a department of taxation:  State Government Websites  

[bkaytaxes]

To expand on the exemptions,  please note that New Mexico, South Dakota, and West Virginia are the four states that generally tax all services unless specifically exempted by state law. These states have  a broad  tax structure where services are typically assumed to be taxable.  Since sales tax is not a topic we specialize in,  I would also   recommend consulting your state and local sales tax professionals to become familiar with anything specific to your state and local government requirements.