When should a business charge taxes?

[ahl]

Hi friends,

I'm opening my new software programming business. So far I'm planning in charging my customers a monthly fee for the services. My clients will be pretty much other business, but eventually one of my applications would become attractive to some individuals.
Should I charge taxes to my clients?...either business or individuals?

I know sometime companies don't charge taxes each other. I worked in a computer repair shop and our provider used to waive sales taxes because we had a tax id.

Can someone clarify this to me?

Thanks a lot.

PD: I live in FL

[Evan]

I'm not familiar with taxation in Florida. Usually if you sell any products, sales tax needs to be charged. Even if it's just a few parts you use to repair a computer (which could be something your business does), those are usually taxable. Generally, services are not taxable, though some states do.

There are also some exceptions as to what is taxable and isn't. I know, for example, that clothes are taxed in Florida. That isn't true in Rhode Island. So I cannot make a blanketed statement saying "clothes are taxed" because it isn't true.

Your best bet is to either consult with a local CPA, an attorney, or to try reviewing the information provided for by your state division of taxation (or revenue). They should have a brochure for businesses to inform you of what is taxable and what isn't. As a last resort, you can always try to find the state law and interpret it yourself. Just make sure it's the most recent law. The last thing you want is the 1991 statute if it was last amended in 2004 (for example).