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Home: Video University Forums: Marketing & Business:
Do I need to collect Sales Taxes in Illinois for Wedding Videos?

Storm Crow
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Nov 8, 2005, 11:29 AM

Post #1 of 7 (1760 views)
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Do I need to collect Sales Taxes in Illinois for Wedding Videos?	Can't Post

I'm setting up QuickBooks Pro '05 on my computer and it is asking if I collect sales tax. Currently I do not but should I be collecting it? Is this one of those issues where half will say yes and half will say no?
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Good Friend, around these hearth stones, speak no evil of any creature.

Warning: Exposure to the Son can prevent burn!
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videobear
Veteran

Nov 8, 2005, 2:14 PM

Post #2 of 7 (1748 views)
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Re: [Storm Crow] Do I need to collect Sales Taxes in Illinois for Wedding Videos? [In reply to]	Can't Post

The half who matters is your state department of taxation. Ask them.

Regards,
Doug Graham
Panda Productions

reelpro
Novice

Nov 8, 2005, 8:53 PM

Post #3 of 7 (1738 views)
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Re: [Storm Crow] Do I need to collect Sales Taxes in Illinois for Wedding Videos? [In reply to]	Can't Post

In Illinois there is no sales tax on sales of service. You are providing a service. However, all businesses in Illinois have to have an IBT number (Illinois Business Tax Number) whether you collect sales tax or not. You will have to fill out a return and send it to the Illinois Dept. of Revenue. If you are a corporation or a partnership you will also have to pay a replacement tax on your profits. All the information you need is on the Illinois Dept of Revenue Web site. http://www.revenue.state.il.us/

Quote

You must register with the Illinois Department of Revenue if you conduct business in Illinois, or with Illinois customers. This includes sole proprietors (individual or husband/wife), exempt organizations, or government agencies withholding for Illinois employees.

It can be quite complicated I highly recommend hiring an accountant to get you set up.

Remember all businesse whether you collect sales tax or not have to be registered

Storm Crow
Veteran

Nov 9, 2005, 3:47 AM

Post #4 of 7 (1732 views)
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Re: [reelpro] Do I need to collect Sales Taxes in Illinois for Wedding Videos? [In reply to]	Can't Post

Thanks Reelpro for the bounty of info Wink

_________________________________________________

Good Friend, around these hearth stones, speak no evil of any creature.

Warning: Exposure to the Son can prevent burn!
_________________________________________________

Edward
Veteran

Nov 9, 2005, 7:43 AM

Post #5 of 7 (1724 views)
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Re: [Storm Crow] Do I need to collect Sales Taxes in Illinois for Wedding Videos? [In reply to]	Can't Post

We break up our sales into service and product. We do not charge sales tax on the service but do on the product. So if we give them 5 DVDs, they pay sales tax on the 5 DVDs but not the remaining amount which is "service". If we do events (such has graduations) where all income comes from product sales, there is no "service" amount.
Edward Troxel
JETDV Scripts & Newsletters @ www.jetdv.com

Storm Crow
Veteran

Nov 9, 2005, 8:38 AM

Post #6 of 7 (1715 views)
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Re: [Edward] Do I need to collect Sales Taxes in Illinois for Wedding Videos? [In reply to]	Can't Post

Thanks Edward as always Wink

kedan
Enthusiast

Jan 3, 2006, 11:15 PM

Post #7 of 7 (1510 views)
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Re: [Storm Crow] Do I need to collect Sales Taxes in Illinois for Wedding Videos? [In reply to]	Can't Post

I am in Illinois and I don't charge sales tax, when I worked at Best buy they didn't charge sales tax either when they serviced a TV/Radio etc.

I pay tax when I buy my DVDs etc if I didn't then I'd need to collect tax.

However if my income (like mentioned above) came strickly from selling DVD copies then I'd charge sales tax.