Episode 005

What You'll Learn:

Why sales tax is a "trust tax" and how personal liability works (even with an LLC)
Which photography products and services are taxable in different states
How to determine where you have "nexus" and need to collect sales tax
The 7-step process for implementing sales tax collection in your business
Common sales tax mistakes that can trigger audits
What to do if you haven't been collecting sales tax (hint: amnesty programs!)

Episode Highlights:

[00:02:15] Why Sales Tax Matters for Photographers Tiffany explains why ignoring sales tax can lead to devastating consequences, including personal liability even if you have an LLC. She shares real examples of photographers who faced $15,000+ in assessments.

[00:08:45] Sales Tax Fundamentals Learn the basics: all states tax tangible items (prints, albums), but rules for services and digital files vary dramatically. Plus, understand the difference between destination-based and origin-based states.

[00:11:30] Understanding Nexus Discover when you need to collect sales tax based on physical presence vs. economic activity. Includes specific scenarios for portrait photographers, wedding photographers, and those selling online.

[00:15:20] 7-Step Implementation Process Tiffany walks through her proven system for sales tax compliance, from determining nexus to setting up collection systems and meeting filing deadlines.

[00:21:30] Getting Compliant If You're Behind Don't panic! Learn about Voluntary Disclosure Agreements (VDAs) and state amnesty programs that can help you get compliant without crushing penalties.

Resources Mentioned:

FREE State-by-State Sales Tax Guide for Photographers - Our most downloaded resource!

This Week's Homework:

Conduct a sales tax compliance check-up:

Identify where you have nexus - List all states where you perform services or sell products
Research taxability - Use our guide to understand what's taxable in each state
Verify registration status - Confirm you're registered where required
Set up tracking systems - Plan how you'll track and remit sales tax

Community Q&A:

"I shoot about 10 weddings a year in neighboring states. Do I really need to register for sales tax in each state?"

The technical answer is you need to follow each state's rules, but check for:

Exemptions for occasional/isolated sales
Whether you exceed economic nexus thresholds
Each state's specific rules for out-of-state photographers (all covered in our guide!)

Key Quotes:

"The corporate veil that might protect you from other business liabilities does not apply to sales tax."

"Sales tax compliance isn't just about avoiding penalties and audits. It's about building a professional, sustainable business that stands on solid legal ground."