Hello,
I am opening an event planning and rental company. (Rentals being decor items such as, various backdrop options, mirror signage, balloon arches and more.) I have done tons of research and there is no clear answer on whether I need to charge sales tax on the event planning services or rental items.
Also I am a new business owner so when would I be required to do taxes. (My business will not be officially open until May 1st, 2023.) I have read some on taxes and it says that business owners have to do their returns on the 15th of every 3rd month. Im not sure what this means or how I get started.
Some info to know is that this will be an independent LLC company or a "sole proprietorship" LLC. I live in Ga.
Thank you in advance!
Sales taxes are very specific to the state/county/city you operate in, and can include where you deliver your rentals to be used instead of just where your office is. You would likely do better looking for a tax professional in your area to help you sort out the details.
Your first annual tax return will be filed on your 2023 Form 1040 Schedule C if you report as a single-member LLC disregarded entity.
Okay so I wouldn't be required to do any taxes until next years taxes?
Because taxes for this year are for the 2022 year correct?
Yes, your 2023 taxes will be due next year, probably by March 15, but you may have to file estimated taxes during the year. I strongly suggest you connect with an accountant. My experience as a small business owner is that they will save you more money than they cost, not to mention save you time.
As far as sales tax, usually the county, city and/or state that you pay sales tax to has a very informative website and you can probably file and pay your taxes online. Here's another reason to get an accountant, they'll know the answers to all these questions.
Yes, that is correct. You are not required to report any business income on your 2022 taxes. Of course, you may still need to file if you meet any of the requirements for filing with other income. See Do I need to file a federal return this year? for specifics.