Sales Tax Permit

Obtain a Sales Tax Permit for your business with Getting Incorporated™'s Sales Tax Permit service. A Sales Tax Permit is a legal requirement for a business to sell products or services. Obtaining a Sales Tax Permit registers your business with the proper Tax Authorities, and allows you to legally make taxable or tax exempt sales. Even if you consider your sales exempt from sales taxes, a Sales Tax Permit is still necessary in order to obtain the official certificate of exemption required. If you are a reseller, a Sales Tax Permit is particularly useful in giving you the capability to obtain products at wholesale without being obligated to pay sales tax or retail prices. Getting Incorporated™ can obtain a Sales Tax Permit for your business.

Business Law Update:

Delaware

SB 213

An act to amend Title 5 of the Delaware code pertaining to the Delaware Bank Franchise Tax and Title 30 of the Delaware Code pertaining to the Delaware Corporation Income Tax. This Act recognizes the changing nature of the financial services industry by permitting certain types of corporations to apportion their apportionable income based on a single ratio of Delaware-sourced gross receipts from asset management services to all gross receipts from asset management services, rather than the 3 ratio average apportionment factor used by other corporations. The Act creates a definition of an “asset management corporation,” which is a corporation, 90% or more of the federally reported gross receipts of which are derived from asset management services, which is also defined by the Act. The Act permits, but does not require, corporations that meet the criteria for treatment as asset management corporations to elect such treatment for each taxable year. Asset management services are services rendered with respect to intangible investments and consist of rendering investment advice, determining the timing of sales and purchases of intangible investments, selling and purchasing intangible investments, rendering administration and distribution services and managing contracts for sub-advisory services. The sourcing of gross receipts derived from providing asset management services is based generally on the domicile of the consumer of asset management services. The Act prevents the election by subsidiary corporations of banking organizations, trust companies or electing banking organizations and trust companies under the Delaware Bank Franchise Tax to be taxed as asset management corporations under the Corporation Income Tax of Title 30 of the Delaware Code rather than under the Delaware Bank Franchise Tax under Title 5 of the Delaware Code. Current Bill Status: March 12, 2008 Assigned to Finance Committee in Senate.

Start Up Tip:

Sub S LLC?

LLC's can obtain sub s status just like an S Corporation does. This is because the legal business entity is formed at the state level, where either an LLC or Corporation are formed. Both LLCs and Corporations have the option to elect sub chapter s tax status with the IRS. However, most LLCs obtain pass through taxation by opting to be taxed as a Sole Proprietor or Partership instead.

[Sales Tax Permit]

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