Ask any tax professional what their most peculiar memory from the last decade!
9 out of 10 will have the same answer.
The Introduction of Goods and Services Tax in the last five years and its aftermath.
It simplified and increased the importance of professionals who understood the regime, making them invaluable for any business.
Now, imagine, doing the same work for a business in the US for 20x revenue which is ten times easier?
Sounds unbelievable?
Enters the sales tax regime in the US.
Umm.. What exactly is sales tax?
In the U.S., sales tax is a tax applied to the sale of goods and services, and it’s handled at the state level.
Similar to GST, but quite not the same.
This means there isn’t one national sales tax rate but a variety of rates and rules across different states.
Some states, like Oregon and New Hampshire, don’t even charge sales tax at all, while others like California and New York, do—and at different rates!
When a business sells a product or service, it generally collects sales tax from the customer based on the rate set by the state where the transaction occurs.
But it’s not just about sales tax filing!
If your client has a physical or online presence in a state, it needs to register for collecting sales taxes in that state.
Failing to register and/or pay the correct sales tax can lead to severe penalties.
This is where you can help!
Tax Preparation Services Market is expected to reach around $44.7 Billion by 2033!
You can not only guide your clients through registration requirements and sales tax filing requirements but actually do it for them!
You can easily charge 150 – 200 $ for registering the business to collect sales tax in each of the states where the client’s business is present or has a nexus.
Or…..
You can work with CPAs who are already assisting businesses with such requirements and earn easily between 10-80 $ per hour!
According to reports, there are approximately 2,84,000 tax preparation businesses in the United States. About 53% of Americans who file taxes utilise a tax professional.
Want me to tell you how you can do it?
Here is a detailed video by our expert, Vrinda Singh, who explains how to register a business in the U.S. for sales tax purposes.