Originally Posted by rana_cis
I am in process of getting licensed and inspected in RiChmond
my questions are
is after I file for tax ID. how do I need to deal with that and how much do you charge for tax? and do you include this in the receipt ?
after I schedule a time with the inspector and pass "are we done at this point or they will visit for inspection randomly during the year?"
what is the tax form I need to file for LLC?
When you file for the LLC you'd go down to the business office at the County building (I think it's on Parham Rd?). After you fill out the LLC info you walk over to the tax office where they'll give you a tax ID number, then you go back to the business office and they finish your paperwork. It's all in the same building complex, so you do it at the same time.
As far as sales tax goes, I collect 5%, because the tax on prepared food that will be eaten off-premise is 5%, not the lower one. I'm not taking any chances on having someone fine me and collect back taxes for X number of years just because I chose to believe that the lower rate applies to us!
Once you have your tax ID number you can apply for a tax exemption for your ingredients, but you have to do that store-by-store using your business license and tax ID number. Yoy won't have to pay sales tax on your ingredients or anything else that goes into the production and delivery of the cakes (boards, boxes, anything disposable that goes with the cake when it gets delivered and doesn't come back to you, basically). You still have to pay it on magazines, equipment, etc.
When you collect the sales tax you'll either have to pay it monthly or quarterly depending on how much you're making, they'll tell you how often. I itemize it on the contract, then keep it separate in my ledgers. I pay it once a month to the state, and you can do that online if you set up your account online with the Dept of taxation.
The first inspection will be the most thorough, and they'll ask you the most questions then. After that the inspector comes once a year and they mainly want to make sure that you haven't changed anything in your setup (no additional rooms used, etc.)