State and Local Sales Tax

Depending on what industry your business engages in and the state your business operates in (and if that state assesses sales tax), you most likely have to pay sales & use tax from business earnings, typically as a percentage rate set by the state multiplied by gross receipts from taxable sales. How often you pay sales tax is determined by the liability amount of sales tax due - ranging from monthly, quarterly or even annually.

For demonstration purposes, let's look at Minnesota Sales tax and learn how to set up an e-services account through the MN Department of Revenue.

  1. To setup an account, access the e-services link: https://www.mndor.state.mn.us/tp/eservices/_/.

  2. From here, click "Create a Username"

  3. Under Businesses, select the option depending on if you have an MN Tax ID number established or not.

  4. Follow the prompts and enter requested information, such as a business address and EIN.

  5. Once your account is established, you can then file your sales tax returns and make payments

Tip: Please note that sales tax rate in your state is subject to change and any given time

Bonus tip: Ensure you're filing and paying in a timely manner as penalties and interest can accrue (and be steep!) for non-filing/non-payment

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