Do I Charge Sales Tax?

[dacrazycanadian]

Hi everyone,

In the next few months a friend and I will be in charge of selling and rehousing our baby Ambanjas. I know this is a weird topic but I'm looking at this more as a hobby than getting super involved in business, because I'm doing this because I love chams obviously. With that said I would of course like to get something back for what's been spent on supplies.

So what I'm wondering is what all of you guys experience in selling chams and other reptiles? Do I charge sales tax? What licenses do I need? Or where should I go to find answers to these questions? Also I live in MN but am also looking to possibly ship to other states.

Thank you!

 

[ferretinmyshoes]

I shipped babies to multiple states using ShipYourReptiles. No license required. Decided a fee, adding shipping costs and did not add tax.

 

[dacrazycanadian]

I've wondered about that company actually, good to hear others use it.

So you don't need a license for a business of this type or no? And besides online I'd also be going to shows here in MN to sell them and contacting local shops to supply to them.

 

[BrucenBruce]

Whether you'd need a license probably varies from state to state - and if you ask the state, I suspect that they'll probably tell you that you need to register your business and charge tax.

You might see if you can get some more pinpointed information from the vendors at your local show.

~Bruce, who sometimes wonders the same thing . . .

 

[ChameleonsByVanGogh]

find a number

I'm a business owner and I have found that a bottom line is always best. I find a good competitive price that I am comfortable with the turn around and offer free shipping and don't mention tax. I just take it out. Your not running a tire shop with a price then a rotation fee...mounting fee ....this fee that fee. Just figure your cost and pic a profit margin and sell your reptile....if your not a legitimate business with a tax I'd....why would you just know the problems that can arise from that

 

[dacrazycanadian]

So as a small business owner in this area of work people generally don't worry about turning in tax? I assume that's the way a lot of people do it right? Until you get big and noticeable..

 

[dacrazycanadian]

By the way thanks to all the input thus far. Please keep it coming I'm sure there are many others besides me who are thinking about and debating on this topic.

 

[ferretinmyshoes]

As a private breeder you're really not a small business owner unless you go through the process to incorporate as such. You're just a guy with some lizards to sell. If you want to make it a true business then you have to go through the legal process and thus are subjected to all the tax laws, reporting requirements, etc. Otherwise, you're not making enough money to be noticeable to anyone of importance more likely than not.

 

[NHenn]

I don't know how it works in other states but here in PA it is a big deal. Messing around without paying sales tax here can equal jail time so it isn't something to take lightly.

Again not sure how it works in your state but I'm required to have a sale tax id number here in PA and it must be paid into the state quarterly. I'm also require to have a fictitious name approval for my business as well as a permit from the state to breed and sell chameleons.

Also remember as of right now, sales over the internet do not require you to charge sales tax, only sales within your state are required to be taxed.

Hope this helps

 

[dacrazycanadian]

As a private breeder you're really not a small business owner unless you go through the process to incorporate as such. You're just a guy with some lizards to sell. If you want to make it a true business then you have to go through the legal process and thus are subjected to all the tax laws, reporting requirements, etc. Otherwise, you're not making enough money to be noticeable to anyone of importance more likely than not.

Ok thank you that gives me a good idea of what I'm actually deciding. Personally I think I would like a business name and what not since I'm partnered with a friend so I should probably look into the forming a business part.

 

[dacrazycanadian]

I don't know how it works in other states but here in PA it is a big deal. Messing around without paying sales tax here can equal jail time so it isn't something to take lightly.

Again not sure how it works in your state but I'm required to have a sale tax id number here in PA and it must be paid into the state quarterly. I'm also require to have a fictitious name approval for my business as well as a permit from the state to breed and sell chameleons.

Also remember as of right now, sales over the internet do not require you to charge sales tax, only sales within your state are required to be taxed.

Hope this helps

Thank you this was very helpful also. This is a dumb question, but who exactly would I contact for my state regulations and a list of exactly what is required in my state. I couldn't find much googling it.

Also from your last statement I'm assuming you still have to turn in a tax for the internet sales right even though you're not charging customers a sales tax? Or is that incorrect?

 

[NHenn]

I'm not sure who you would contact. I would try to find the department that handles sales tax or the department that is for setting up business in your state and go from there. I assume the information will be confusing and difficult to find like all other government forms and instructions.

Depends on your state. I would assume yes that you would need to submit both your taxable sales as well as your non taxable sales but can't confirm that.

 

[dacrazycanadian]

Ok thank you I'll try to continue my search. Very true about the confusing and difficult to find government forms.

 

[dacrazycanadian]

I shipped babies to multiple states using ShipYourReptiles. No license required. Decided a fee, adding shipping costs and did not add tax.

When you ship do you use their normal ground shipping or do you do an overnight ship or something? Also do you have your own shipping materials or do you use one of their kits? I ask because the reptile cups look a little small.

 

[NHenn]

You have to ship priority overnight for all reptiles. If you are only shipping a few you can use their kits but if you are planning on shipping a lot of them it is more economical to purchase boxes and other supplies in bulk from them or from other places like LLL.

 

[dacrazycanadian]

Ok that's what I thought, I got my cham as an overnight.

What's the youngest that people should sell/ship them at though? 3, 4 months?

 

[NHenn]

Usually around 3 months but I do it off size too. I have a female that is 3 months but is on the smaller size so I'm keeping her till she gets a little larger, better save than sorry.

 

[dacrazycanadian]

Ok thank you so much for all the input it really helps a lot.