Some of the questions we are asked most often:
If I sell an inventory item at a loss, do I still have to collect sales tax?
Generally yes. Sales tax in Texas is based on the sales price of the item, not the profit (sales price less cost), as well as where the sold item is delivered. If the delivery point is in Texas, then, yes, you do have to collect sales tax. If delivery is out of Texas, then no (as long as you don't have nexus in the other state).
I borrowed money from the bank for my business. Is that considered income, and do I get to deduct the loan payments?
No, loan proceeds from any source, a bank or family and friends, is not income. It is a liability. When you make a loan payment, you are paying back some of the principal borrowed and reducing the liability. Interest that is part of the payment may be expensed and deducted.
I created a website for my business and it is active. But no one is coming to the site and I have no sales. What am I missing?
Just launching a website does not mean anyone knows it is there. Think of it as throwing a pebble into the ocean. The ripple from the pebble needs to be a very large splash or wave to be noticed. And it has to happen continuously. We will be glad to visit with you to review your website and what social media marketing may best work for your business. Email us, call, or complete the Contact Us contact form.
