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firestorm102389
08-19-2014, 02:37 PM
I have an issue I'm running into, and I'm supposed to file paperwork for my sole proprietorship very soon. I want to start a motor assisted bicycle business, and as far as receipts/bill of sale and tax is concerned, I'm hitting a road block and can't find the answers I'm looking for on google. I'll be having a tax preparer do my taxes every year, but as far as billing and sales are concerned, I'm stumped by these questions:

1) I purchase the items and assemble the bikes, do I need to call the company I'm purchasing parts from and get authorization that it's allowed for me to resell their products?
2) Is there a way I can go about this so that I can just charge for service and not the product itself?
3) Where can I find the tax rate where I live? (Lufkin, Texas)
4) What needs to be on the reciept/Bill of sale?

Any feedback, input, advice would be greatly appreciated. Thank you all in advance!

Freelancier
08-19-2014, 02:59 PM
1) Usually, no. But if you have a tax number with the state, you can buy the parts exempt from sales tax, so there's value there.

2) Probably not. In Texas, certain services are taxable and that likely includes what you're doing. (see here http://www.window.state.tx.us/taxinfo/taxpubs/tx96_259.pdf)

3) Texas Comptroller of Public Accounts (the state Dept of Revenue) will be THRILLED to tell you :) In the meantime, you can look here: Lufkin, TX Sales Tax Rate (http://www.sale-tax.com/LufkinTX)

4) Same as any receipt... what you sold and how much.

firestorm102389
08-19-2014, 03:05 PM
My next question I'm thinking about 2 ways...

If I buy the parts and pay the tax, can I skip taxing the customer on the physical products and just tax for the services?
or
could I put on the invoice a reimbursement amount for the product and a separate line for services and the tax on those services?

Freelancier
08-19-2014, 03:32 PM
Or would it be easier just to get a sales tax permit and an EIN number so I can buy items without tax and collect tax on the entire bill?

Probably. Talk with the state or an accountant to confirm, since they're closer to your laws than I am.

firestorm102389
08-19-2014, 04:08 PM
One quick question. What branch of the state would I have to contact about this to confirm? chamber, secretary of state, other branches? Back in wisconsin I messaged the secretary of state and they didn't even know what I was talking about.

Freelancier
08-19-2014, 04:14 PM
Based on the links I found, Texas Taxes (http://www.window.state.tx.us/taxes/).