OT: business update - crossposted, Cea and klh you need to read

Posted by off kilter quilter on August 22, 2006, 9:00 am

So, I've been doing research on what forms and such I need to fill out
and everything so that I can get this up and running. In the meantime,
I have been steadily working through UFOs and WIPs (pics coming later
tghis week, I promise!!). I called the VA dept of taxation because I
wanted to NOT violate anything when I get up and running. Mrs.
Dickerson was extremely helpful today, much more so than the first
person I talked to who didn't seem to think that sewing was a business!!
Here is what I learned:

"The tax applies to the charges for the fabrication of tangible personal
property for users or consumers who furnish, either directly or
indirectly, the materials used in the fabrication work. For example, a
tailor who makes an article of wearing apparel from materials furnished
by the customer must collect and pay the tax on the charge for making
the apparel."

This is from the VA Administrative Tax Code: 23VAC10-210-560

So, once I get the zoning license and register the business name, I have
to register the business online, and that is one more schedule I need to
keep up on because, regardless of if I make any money during a month, I
need to submit the proper paperwork or else face a fine!!

So yes, the business is still in the works, just taking baby steps. I
will, hopefully have the zoning license and everything local by the end
of the month, and then I will get the State stuff taken care of.

Thanks again for all of your help,

Larisa

Posted by cea on August 22, 2006, 11:01 am

off kilter quilter wrote:

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Yes; this is one of the reasons I like alteratiions:you're not
selling a finished product; as a service, you're not allowed to charge
a tax. Although I did a brief stint with one shop which did charge a
tax--I suppose they pocketed the monies as extra profit--I didn't work
for them long enough to know.
---
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I might have remembered wrong, but I thought one had to declare/pay
tax every three or four months. It's possible they changed the
regulation since I first inquired. There's another reason I preferred
sub-contract work. Poor business owner gets all the headaches.
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To paraphrase the old good luck stage wish: Pop a seam!!
Cea

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