Legal Question in Tax Law in New Jersey
I am a registered interior design business in NJ. I have clients that I sell goods to in Philadelphia PA. What tax am I supposed to charge them? Do I need to be registered in PA as well?
3 Answers from Attorneys
You need the advice of a CPA, I can refer one to you if you need one.
Best regards, Keith Singer, Attorney At Law 732-749-3700
If you conduct business using an entity other than you individually (eg, a corporation or LLC) you need to register the entity in every state you conduct your business. If the business or products sold are subject to sales tax, you must collect it and pay the taxes to the state where collected. You may owe PA income taxes (state and possibly local), but you get a credit in NJ for taxes paid to another state.
First, you did not state whether you are operating as a sole proprietor or in an entity. I would definitely advise the LLC as the best entity for the interior design business. You will need to be authorized in each State where you do business. You will also have to charge your customers Sales tax (if applicable) in the location where goods were sold or services rendered. Please engage a good tax and business lawyer to help you set-up your business the right way.
Good Luck!
Ron Cappuccio
www.TaxEsq.com
www.LLCLawyer.com
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