Posted on Saturday, 18th July 2009 by admin
Business Directory
I know it depends on the business. That is why I was asking for a service business.
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I know it depends on the business. That is why I was asking for a service business.
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Tags: Service Business, State Taxes
Posted in 1369 | Comments (2)
July 21st, 2009 at 3:14 pm
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What kind of service business are your referring? Also, what kind of taxes are you referring? Income tax or sales tax?
July 21st, 2009 at 7:37 pm
New York City Job Listings
It’s largely a wash in most cases. States with low or no income taxes on businesses make up for the shortfall elsewhere such as high sales taxes (cuts into sales directly) or high propery taxes (cuts into profits with higher costs) or high individual income taxes (may make it harder to find qualified staff and may affect payroll costs).
Some states levy sales taxes on labor charges and some do not. And some, like NY, levy sales tax on some labor but not others. For example if you take your dog to a Vet in NY no sales tax will be charged, but if you take it to dog groomer then you’ll pay sales tax on the total bill.
When choosing a state, county, city, or town to locate a business in you need to look at the total picture, NOT just taxes. Do they offer any tax breaks for new businesses? How difficult will it be to locate qualified labor? Is there a solid market for your services, or can you generate a demand through advertising? What about local utility costs and the costs of raw materials?