- [Instructor] Sales taxes are a monthly hurdle
for a lot of firms.
Anyone selling a product to the public
will almost certainly have to pay sales taxes.
Fact, many services are also subject to sales taxes,
but that varies considerably by state.
You should check your state regulations to determine
whether your firm needs to collect sales taxes.
And if so, how much?
This varies state by state
and sometimes county by county or town by town.
If you determine that you will need to collect sales taxes,
you'll have to register with the State
and get a registration or license number.
Let me show you how this is done for one sample state,
in this case, Connecticut.
Now we're here at the State of Connecticut's
Department of Revenue Services page.
We're going to look at how you'll register
for the sales tax number.
Remember, though, there are two different kinds of taxes
that we're going to pay to any state out there.
There are taxes like the SUTA tax,
State Unemployment Tax,
that we'll pay to the Department of Labor in the state.
And then we also have other taxes that we're going to pay
to the Department of Revenue Services
or whatever term they use for their tax collecting body.
So you're going to have two different registrations
with the state, two different ID numbers,
perhaps two different passwords.
Make sure that you keep these separate.
Once we've identified and located the registration page,
you'll come down and register.
So they have the usual litany of information.
You'd want to read through this, and then we click Next.
Now we're going to let them know what we're doing.
We're opening a new business in this case.
And we're going to have to fill out the type
of organization this is and some details around it.
Once you've filled out the form, you're ready to proceed.
You'll list the individual owners in the company.
Once you've filled out all of the individual owners,
you're ready to proceed.
At this point, you'll be ready to register
for the particular taxes that you have to pay.
You'll go through and answer a series of questions
that'll help the State determine which taxes
you need to pay as an employer.
Once you're done with that, you'll be able to select Next
and finish the registration.
One tax that almost everyone will have to pay
is some sort of business entity tax.
Think about this as a tax that the State charges you
for setting up a business.
Most states have one.
Once you've finished filling out all the information
about the firm, you'll be asked
to verify all of that information and then submit it
in order to get a final registration number
and allow you to begin collecting sales taxes.
Generally, you'll need to link your bank account
to the State so they can withdraw directly from
your bank account any time you owe taxes, fees, et cetera.
Now you should be prepared to register
to file sales taxes and take up selling product
to the general public in your state.