Pianotech

  • 1.  Business Topics

    Posted 01-04-2019 17:52
    A few questions:

    Is service tax the only thing to charge for (aka gross receipts/sales tax)?.
    And since we as technicians service in multiple cities do we need a business registration in each city...and each county...or even each state if we service in multiple states?  That's where I'm confused.
    Thanks.


    ------------------------------
    Cobrun Sells
    C.J. Piano Tuner
    www.cjtuner.com
    cobrun94@yahoo.com
    ------------------------------


  • 2.  RE: Business Topics

    Registered Piano Technician
    Posted 01-04-2019 20:53
    Cobrun

    Every state, county and city have their own rules and regulations concerning registration, taxes and fees. I would suggest you contact your local government and ask them what is needed for you to be in business.

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    Willem "Wim" Blees, RPT
    Mililani, HI 96789
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    Original Message


  • 3.  RE: Business Topics

    Registered Piano Technician
    Posted 01-04-2019 23:12
    I would ask an enrolled agent.

    ------------------------------
    Larry Messerly, RPT
    Bringing Harmony to Homes
    www.lacrossepianotuning.com
    ljmesserly@gmail.com
    928-899-7292
    ------------------------------

    Original Message


  • 4.  RE: Business Topics

    Posted 01-04-2019 23:19
    Hi,

    For those who may be unfamiliar with the term, here is how it is defined
    by the IRS:

    "An enrolled agent is a person who has earned the privilege of
    representing taxpayers before the Internal Revenue Service by either
    passing a three-part comprehensive IRS test covering individual and
    business tax returns, or through experience as a former IRS employee.
    Enrolled agent status is the highest credential the IRS awards.
    Individuals who obtain this elite status must adhere to ethical
    standards and complete 72 hours of continuing education courses every
    three years.

    "Enrolled agents, like attorneys and certified public accountants
    (CPAs), have unlimited practice rights. This means they are unrestricted
    as to which taxpayers they can represent, what types of tax matters they
    can handle, and which IRS offices they can represent clients before."

    Here is a link to page on the IRS site that has this description:

    https://www.irs.gov/tax-professionals/enrolled-agents/enrolled-agent-information

    After an IRS audit some years ago, I've used Enrolled Agents since; and
    never looked back.

    As with so many other things, YMMV.

    Kind regards.

    Horace

    On 1/4/2019 8:11 PM, Larry Messerly via Piano Technicians Guild wrote:
    > Please do not forward this message due to Auto Login.
    >
    > I would ask an enrolled agent.
    >
    > ------------------------------
    > Larry Messerly, RPT
    > Bringing Harmony to Homes
    > www.lacrossepianotuning.com
    > ljmesserly@gmail.com
    > 928-899-7292
    > ------------------------------
    > -------------------------------------------
    > Original Message:
    > Sent: 01-04-2019 20:53
    > From: Willem Blees
    > Subject: Business Topics
    >
    > Cobrun
    >
    > Every state, county and city have their own rules and regulations concerning registration, taxes and fees. I would suggest you contact your local government and ask them what is needed for you to be in business.
    >
    > ------------------------------
    > Willem "Wim" Blees, RPT
    > Mililani, HI 96789
    > ------------------------------
    >
    > Original Message:
    > Sent: 01-04-2019 17:52
    > From: Cobrun Sells
    > Subject: Business Topics
    >
    > A few questions:
    >
    > Is service tax the only thing to charge for (aka gross receipts/sales tax)?.And since we as technicians service in multiple cities do we need a business registration in each city...and each county...or even each state if we service in multiple states??? That's where I'm confused.Thanks.
    >
    > ------------------------------
    > Cobrun Sells
    > C.J. Piano Tuner
    > www.cjtuner.com <http://www.cjtuner.com>
    > cobrun94@yahoo.com <cobrun94@yahoo.com>
    > ------------------------------
    >
    >
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    Original Message


  • 5.  RE: Business Topics

    Registered Piano Technician
    Posted 01-05-2019 11:47
    In my area, I have to have a business license for Washington state, City of Vancouver, and every county I do business in in Oregon as well as a general license to do business in Oregon.  I use a bookkeeper to do my books and she has been keeping me in line with these things over the years.  When I applied for my business license I also had to register my business company name with Washington State and was informed at that time how and when to charge sales tax.  There isn't any tax on tunings.  If I install parts, there's tax on the parts and the labor to install them.  If I move a piano, that's taxable.  There's different tax rates for different areas of the county I live in. Oregon has an income tax but no stales tax.  I pay Oregon income tax but I don't get to vote on how it's spent. 

    It's complicated and so I'm more than happy to have a bookkeeper figure all that out for me.  All I have to do is concentrate on making money and charging appropriately.  We are, after all, agents of the state collecting taxes for the state we're working

    ------------------------------
    Larry Fisher
    Owner, Chief Grunt, Head Hosehead
    Vancouver WA
    360-256-2999
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    Original Message


  • 6.  RE: Business Topics

    Registered Piano Technician
    Posted 01-05-2019 12:08
    OMG, Larry. That's ccomplicated! I have to charge sales tax on everything, & some cities I have to charge an extra percent, but not all. Even though I have to keep track of who gets what tax, I only need ONE business licence for my county & that's good in the whole state. Ugh.

    Yes, you've got to find out what the rules are for each individual state, as Jon Gallen et al said.

    ------------------------------
    Maggie Jusiel
    Athens, WV
    (304)952-8615
    mags@timandmaggie.net
    ------------------------------

    Original Message


  • 7.  RE: Business Topics

    Registered Piano Technician
    Posted 01-05-2019 00:56
    Like Wim said, everything varies based on where you live. Talk to a local (friendly) technician and see what he thinks, and if he's informed or not really. 

    For sure you need a general business license. You may or may not need one for each city or county you service. For example, I live in an unincorporated area of Santa Barbara county, just out side of Lompoc (pronounced Lom-poke). I have a general business license for the county of Santa Barbara, for "piano tuning and servicing." Most of my business is in Lompoc, so I called city hall and asked if I needed to buy a business license. 

    After learning where I live, the lady told me they would really like me to have a Lompoc business license, but can't make me because I don't live in Lompoc city limits. Oh well, too bad for them! 😂

    Know also that every place you get a business license from will expect you to renew it every year, regardless of whether you still go there or not. Learn your local laws, and don't sign up for anything you aren't required to sign up for.

    ------------------------------
    Benjamin Sanchez
    Professional Piano Services
    (805)315-8050
    www.professional-piano-services.com
    ------------------------------

    Original Message


  • 8.  RE: Business Topics

    Member
    Posted 01-05-2019 10:27
    Cobrun,
    Service & sales taxes, as Wim pointed out,  vary from state to state
    and in some cases, city by city.
    You may work in an area in which you could be subject to
    multiple sales taxes on the same job.
    In some states, there are taxes on goods sold but not services.
    There also states with no income taxes & others with no sales/service taxes.

    Regarding income taxes, you are required to report (& possibly pay income taxes)
    to each state in which you work.
    In one state for example, you are required to file an income tax return if you have
    " gross taxable income in excess of $33, even if no tax is due".

    As Horace stated, an EA may be advisable.
    He/she may not know the ins/outs of sales taxes
    since they are not federal in nature.
    --
    John Gallen,
    (860)428-6045 CELL
    Production Supervisor: Brooks, Ltd. Piano Parts, LLC
    Owner: 1040 Pianos(Tax Preparation)
    Owner:Vintage Piano Repair(Piano Moving)
    Treasurer: Master Piano Technicians
    Treasurer:Calvary Baptist Church of Preston, CT
    Treasurer:Guilford Smith Memorial Library, South Windham, CT
    Treasurer:DeCaprio4CT48th(Candidate for State Representative, 48th District, CT)
    Ambit Energy: Independent Consultant(www.gallonsofenergy.myambit.com)
    Institute Director, May 2019 Piano Technicians Guild's NEECSO Regional Seminar



    Original Message


  • 9.  RE: Business Topics

    Registered Piano Technician
    Posted 01-06-2019 03:13
    I received a notice from a local city that I needed a business license and owed taxes for that city (the notice was from a private auditing firm).  Since I was working occasionally in that city I took this seriously, but they were asking for hundreds of dollars in back licenses, penalties and taxes and making serious threats.

    I spoke with two lawyers about this and both were shocked about the situation as they had customers across the region and certainly weren't paying for licenses and taxes in every city they had clients in (but technically were required to).

    I spoke with two accountants who confirmed that yes, in California you need a business license in every city you do business in.

    The outcome was I was being threatened because I had the city listed on my web site and potentially every city I had listed in my service area was potentially able to come at me for not just licenses but back licenses, fines and back taxes.

    I deleted all city references from my web site and the problem went away.  I now have a license in my city and (for now) all is fine.

    Some of us do business in dozens of cities.  If we have to pay for licenses in every city and account for all taxes and reporting requirements everywhere we could be bankrupt.

    ------------------------------
    Blaine Hebert
    Duarte CA
    626-795-5170
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    Original Message


  • 10.  RE: Business Topics

    Registered Piano Technician
    Posted 01-06-2019 03:56
    When I was in St. Louis area, I lived in one of the suburbs, and had a license to do business in that suburb. That allowed me to work in all the suburbs. But St. Louis city is not part of the county. For private customers it was OK. But when I did work for schools or hotels in the city, they would report my income to the St. Louis tax people. They would, in turn, send a request for taxes on the money I earned in the city. It wasn't a big deal, as my accountant handled it, and all I had to do is send a small check to the city. 

    Fortunately, here in Hawaii, we're all one "happy" family. Everyone, including church and public schools, has to pay excise tax on every thing, including parts and labor. The state doesn't care if I collect it from my customers, or increase my fees. All the state wants is for me to pay them the same percentage on a quarterly basis.

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    Willem "Wim" Blees, RPT
    Mililani, HI 96789
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    Original Message