Every business that sells tangible personal property, such as merchandise, to customers is required to obtain a seller's permit. This is issued from the state sales tax agency. (There are some businesses, however, that are exempt from this requirement.) Typically, a separate permit must be obtained for every business in which property subject to sales tax is sold. If selling to a retailer, wholesalers and manufacturers usually do not have to collect sales tax on the goods they sell. This, however, is contingent on whether the retailer has a valid seller's permit and can provide you with a "resale certificate".

Similarly, retailers are not required to pay sales tax on items purchased for resale. Blank resale certificates can be purchased at office supply stores. If state law requires that your business collect sales and use tax, you must keep detailed records of your gross receipts from sales/rentals. These records must include all sales/rentals whether or not you believe them to be taxable. Your records must also include evidence of all deductions you claim on sales/use tax returns. In addition you must record the total purchase price of all tangible personal property acquired for sale, lease, or consumption.

Sales tax forms must be filed monthly. The taxes must also be paid on a monthly basis. You can contact the Georgia Department of Revenue to petition for special permission to pay/file quarterly.

Georgia Department of Revenue

Sales and Tax Use Division

1800 Century Center Boulevard NE

Suite 8214

Atlanta, GA 30345

(404) 417-6601

State Taxes

State Excise Taxes

In addition to federal excise tax, you may be responsible for collecting state excise tax as well. The categories are comparable to the federal categories. Alcoholic beverages, tobacco products, motor carriers, and trucks with more than two axles are included in the taxed categories. You should contact the Georgia Department of Revenue for complete information.

Georgia Department of Revenue

1800 Century Center Boulevard NE

Atlanta, Georgia  30545-3205

Alcohol and Tobacco DivisionMotor Fuel Division

Suite 4200; Suite 9227

(404) 417-4900:(404)417-6712

Estimated State Income Taxes

The State of Georgia also requires that you pay estimated state income taxes. The payment dates for estimated state tax are the same as those for federal payments (See Section for Federal Income Taxes below). The Form 500ES should be completed for sole proprietorships or partnerships. Underpayment will result in additional charges as a penalty and willful failure to pay is considered a misdemeanor.

Federal Taxes

Federal Excise Taxes

There are some forms of business on which the U.S. government requires additional taxation. This will be a tax that you are responsible for collecting. This tax does not come out of your pocket. Typically it is added to the sale price of your product or service. Form 720, Quarterly Federal Excise Tax Return is used to file most federal excise taxes. Federal excise taxes can be broken into nine general categories of products and services.

They are:

1. Motor vehicle use tax (vehicles greater than 55,000 Ibs. gross weight)

2. Retailers tax (certain types of fuels)

3. Retail excise tax on the sales of the following: heavy trucks/trailers, tires and tubes, recreation equipment (e.g. fishing/hunting supplies), firearms and ammunition.

4. Air transportation tax (if you are transporting people or property by air, you have to collect this tax)

5. Communications taxes (e.g. on telephone or teletype services)

6. Wagering taxes

7. Taxes on U.S. mined coal

8. Environmental taxes (imposed on petroleum products, various chemicals, and hazardous wastes)

9. Alcohol, firearms, ammunition, and tobacco taxes

Be sure to contact the IRS for complete information on federal excise taxes.

Internal Revenue Service

Gainesville Office

329 Oak Street

Gainesville, GA 30501

(770) 536-2235

www.irs.gov

Business and Specialty Tax Line: 1-800-829-4933

The amount and way you will pay federal income taxes will be dependent on the legal form in which your business is organized.

For a sole proprietor or a member of a partnership:

In either of these arrangements you will be required to make estimated federal income tax payments and federal self-employment tax payments in advance. These individual payments are due in four installments. These payment deadlines are April 15, June 15, September 15, and January 15 for one whose tax year is the calendar year. Any amount left unpaid will be due April 15th of the following year. The Form 1040-ES is used to file these taxes. 90% of your estimated tax must be paid during the course of the year.

For a corporation:

The corporation is responsible for paying estimated corporate taxes if it has taxable income. These taxes can be due as soon as the fourth month of the corporation's first tax year. The proper form for filing these taxes is the Form 1120-W. You must deposit these payments in a bank licensed to accept federal tax payments. The corporation will be issued a coupon book. These coupons will carry the corporation’s tax ID number and are to be used with all federal tax payment deposits.

All forms necessary to file any of the estimated taxes mentioned above are available at your local IRS office. A coupon book will be mailed to you upon receipt of your Form SS-4 (the form filed requesting a tax ID number).

Internal Revenue Service

Gainesville Office

329 Oak Street

Gainesville, GA 30501

(770) 536-2235

www.irs.gov  

Business and Specialty Tax Line: 1-800-829-4933

There are taxes that as an employer you are responsible for both withholding from employee wages as well as paying yourself. For more complete information on employer taxes, see Labor and Safety Regulation Information.

Your federal tax identification number is the number used to file your taxes. It acts in a similar capacity to your social security number on your personal income taxes. In fact, if you are a sole proprietorship you will probably use your social security number. In partnerships and corporations you will need a Federal Tax ID number. To determine whether you need a Tax 10 number, contact the Internal Revenue Service.

Internal Revenue Service

Gainesville Office

329 Oak Street

Gainesville, GA 30501

(770) 536-2235

www.irs.gov