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Question: Charging tax in texas for a home business?

(Posted by: axattackk on 2010-07-31 13:59:26)

I was told that I needed to get a tax license to operate with a dba license in Texas. I was curious as to how people would take that. Being that my products (vintage game systems) will be sold from home, as i have a daytime job, is there a way to get the price even. I was curious as to how Avon sellers charge tax. Do they set their prices at, lets say as an example, $37.43 so that with tax it comes out to $40.00 even? Any other helpful tips for home business would be appreciated. One more thing is that I am not having people buy from my house. I will usually meet them somewhere public, although i have thought about setting up shop at the local flea market occassionally. Thanks again. Ok not sure if my question was correctly worded. I got a dba license to sell vintage video game systems in my spare time from home. I have a real job 9- 5. I just had a question regarding how i can go about charging tax on my product. My concern is that are people going to be ok paying taxes on something they are not buying from an actual store. I will be selling under an assumed name. Thanks.

Posted by: Bostonian In MO on 2010-08-01, 06:38:16

You are required to collect and render TX sales taxes on all of the taxable goods and services that you deliver in TX. Running the business out of your home does not change that. Nor does running it as a part-time endeavor. The DBA cert has nothing to do with collecting sales taxes. It's a local requirement if you run a business under any name but your own legal name.

Posted by: Heidi M on 2010-08-01, 10:35:48

I'm an Avon rep, and with us, when we take orders, we submit them all to Avon at once, and we pay Avon for the products. Then they send us the products and we deliver them, and the customers write a check to us. The way we make our commission is that Avon charges us less up front for the product than the brochure price, so when the customers pay us, we end up with a little more than we had to pay to get the stuff. But when we pay Avon, the items are taxed. So when we print out an invoice for our customers, we add the tax on (I live in NY, so the tax rate is 8%) That way I don't end up paying the tax on their purchases, out of my commission.