You're lucky that you're not subject to sales taxes for any programming or consulting services. Here in Ontario we have to charge 13% Harmonized Sales Tax on any of our goods or serves. The flip side is that we can deduct the 13% we pay out in support of those goods and services when we file quarterly. Some quarters, we actually get a refund since we've paid out more than we've collected in taxes.
Having a corporation helps keep the business finances and assets separate from the personal. There are more deductions available to a corporation than to unicorporated businesses in Canada. In addition liability is limited to the corporation and it's harder to go after your personal assets. Not sure about the various forms of U.S. corporations. -----Original Message----- From: ProfoxTech [mailto:[email protected]] On Behalf Of Jim Harvey Sent: Friday, March 07, 2014 12:10 PM To: [email protected] Subject: [NF]: Pennsylvania Sales Tax I'm going to be providing some computer programming services (creating and maintaining programs I wrote in VFP while employed) for my former employer, and have created an LLC for this purpose. Can anyone advise me whether or not these services would be subject to Pennsylvania's 6% sales tax. Reading the Pa Tax code makes me think that creating and maintaining custom code is NOT taxable, but "canned" software is (I could not find a definition for "canned" software). I believe I don't write "canned" code, but would like to hear what other's in Pennsylvania are doing with regards to this sales tax. Jim Harvey Spring Grove, PA cell 717-887-2565 [excessive quoting removed by server] _______________________________________________ Post Messages to: [email protected] Subscription Maintenance: http://mail.leafe.com/mailman/listinfo/profox OT-free version of this list: http://mail.leafe.com/mailman/listinfo/profoxtech Searchable Archive: http://leafe.com/archives/search/profox This message: http://leafe.com/archives/byMID/profox/042901cf3a44$cb6eff30$624cfd90$@com ** All postings, unless explicitly stated otherwise, are the opinions of the author, and do not constitute legal or medical advice. This statement is added to the messages for those lawyers who are too stupid to see the obvious.
