Need Help From Nc Home Bakers

Business By twomonkeys Updated 10 Sep 2008 , 12:28pm by loriemoms

twomonkeys Posted 7 Sep 2008 , 2:06pm
post #1 of 5

I'm at a loss about the sales tax issue. I can't really seem to find any good information. I have gone through all the steps to be a legal home baker, but am confused as to what I am supposed to do about sales tax. If any NC home bakers has an information that would help me, I'd greatly appreciate it!!!

4 replies
loriemoms Posted 8 Sep 2008 , 12:11pm
post #2 of 5

Here is the info on taxing:

http://www.dor.state.nc.us/business/index.html

What I did was I went downtown and got my tax id so I could be exempt. (you dont need a fed id if you are just dba) They wil give send you all the tax forms to file quarterly. You charge 6.75 taxes for NC. This is for all services, and goods. Deliveries and deposits are a different story, depending on how you charge them. Talk to your accountant about the best way to do it.

If you are in wake county, there is also a food and beverage tax

http://www.wakegov.com/tax/businessproperty/preparedfoodbevtax.htm

This is 1 % and needs to be paid on a monthly basis. They will give you the forms too.

I dont know about other counties, but I would find out, as they do audit. (There was a big audit here a couple of years ago and some bakeries had HUGE tax bills to pay)

I highly suggest you get a good accountanting program (like quickbooks) to keep track of invoices, as it makes it a lot easier to file.

Good luck!

acookieobsession Posted 8 Sep 2008 , 6:18pm
post #3 of 5

Also, somethings I had to call and ask:

1. If you sell to a store that will be reselling (like grocery or cafe) you do not charge them any tax. They pay the tax. But you do report tax as exempt on the form.

2. If you rent stands or other equipment, you charge tax ont he rental fee, but not the deposit.

3. You do not charge tax on delivery or shippping.

4. If you sell out of state, you do not pay tax on that but again report in the exempt area.

twomonkeys Posted 10 Sep 2008 , 12:26pm
post #4 of 5

Thanks so much! That's a big help! Looks like I need to set up an appt. with our accountant too.

loriemoms Posted 10 Sep 2008 , 12:28pm
post #5 of 5
Quote:
Originally Posted by twomonkeys

Thanks so much! That's a big help! Looks like I need to set up an appt. with our accountant too.




Oh fer sure! Also establish yourself a relationship with your bank! You can get things done faster, especailly if you decide to takeCredit cards and such..

Quote by @%username% on %date%

%body%