Small business owners have a lot on their plates. From juggling inventory to managing payroll and navigating tricky rules and regulations, the number of stressful tasks can seem overwhelming. One of the most crucial tasks for a business owner is tax compliance. The penalties for getting tax rates wrong and messing up tax payments are severe, so how do you ensure you’re on top of everything you need to know about sales tax? Start by looking up the current sales tax rate for your state.
Visit Your State’s Revenue Website
Most of the time, you can find tax information on your state’s department of revenue website. Many states have tools that allow business owners to search using their specific address to find current tax rates. The site also provides resources that can help you navigate tax issues and regulations. Some states even have opportunities for business owners to get one-on-one assistance with sales tax compliance.
Look for Exemptions in Sales Tax Rates
It’s important to make sure you’re familiar with tax exemptions, or you could overpay your taxes. Many states have exemptions on food or certain types of common items, and some business types carry exemptions as well. It’s crucial to make sure you’re familiar with all the regulations. Your state’s website should have all the information you need to keep up with exemptions.
Find Information on Other Websites
If you can’t find the information you need on your state’s website, you may be able to find the information elsewhere. Foundations that cater to business owners often provide resources to help them navigate tax rates. If you’re a member of a local chamber of commerce or other business organization, its website or its representatives may be able to help as well.
Don’t Forget About Local Tax Rates
In addition to state tax rates, business owners often have to calculate and pay local sales taxes throughout the year. Check your city or county website for tax rates and information to help you navigate local regulations. Local chamber of commerce sites often have helpful tips and insights into local taxes.