#89: What are my obligations for collecting sales tax?

2023-08-29

Today’s not the most exciting topic, but it’s an important one! Do we coaches need to collect (and remit!) sales tax? Josh and Amelie discuss! Top takeaways: Some states charge sales tax on products, some charge sales tax on services…it’s important to figure out what your state policies are. Go straight to the state website to get information, not blogs etc. Make sure you ALSO check city and county taxes! If your client is in a different state than you, then “economic nexus” applies which depen...

Today’s not the most exciting topic, but it’s an important one! Do we coaches need to collect (and remit!) sales tax? Josh and Amelie discuss!

Top takeaways:

Some states charge sales tax on products, some charge sales tax on services…it’s important to figure out what your state policies are.
Go straight to the state website to get information, not blogs etc.
Make sure you ALSO check city and county taxes!
If your client is in a different state than you, then “economic nexus” applies which depends on how much business you do in that state.
If you have a legal, governmental license, you fall into the Professional Services category; if you are not licensed, you would fall into Personal Services.
Once you start approaching 50-60 transactions in a single state, make sure you start investigating tax rules in that state.

Want help building or growing a successful financial coaching business? Find resources below based on where you’re at in your journey:

Deciding whether Financial Coaching is right for you? Join our free Facebook Community with over 5000 current and aspiring financial coaches! https://www.facebook.com/groups/financialcoachescommunity
Already decided you’re going to be a Financial Coach and want to learn more? Get 30+ tips and best practices in our free 8-part email series! https://www.financialcoachesnetwork.com/pre-launch-email-series
Ready to Launch your Financial Coaching business? Join FCN Launch, our step-by-step program that will help you successfully launch your business in four months and grow it to a consistent part-time income. https://www.financialcoachesnetwork.com/launch
Looking for financial coaching software? Sign up for the interest list for FCN MoneyCoach, the premier cash flow analysis software for financial coaches and advisers. https://www.financialcoachesnetwork.com/money-coach
Are you already coaching clients and want to grow your business to a full-time income? Join FCN Grow, our program that helps you scale your business to a full-time income. https://www.financialcoachesnetwork.com/grow

Comments (3)