AboutLeslie Truex Expertise I am a work-at-home coach. My areas of expertise include telecommuting (work-at-home jobs) and home businessess.
Experience I have been working from home since 1997 and online since 1998. I created Work-At-Home Success one of the first work-at-home information and resource sites on the net in 1998. I am the author of The Work-At-Home Success Bible which offers details on telecommuting, home business and more. I currently telecommute part-time as a social worker and run several online ventures.
Question QUESTION: A friend wants to start a home ironing service and wants to know what taxes, besides federal income tax, will she be obligated for.
ANSWER: Hi Pat,
That can depend on where you live and what sort of local/state taxes are required. Generally you pay income tax to the Federal and State governments. Because she's providing a service and not tangible products, she probably doesn't have to collect and pay sales tax.
A good place to check for information based on your location is the nearest SCORE office or your local business regulatory office (the one that gives business permits/licenses).
QUESTION: A friend in Texas wants to start a home ironing service and wants to know what taxes, besides federal income tax, will she be obligated for. (followup to previous question listing state)
"Texas is one of only seven states that does not tax individual wage income. The state's constitution restricts passage of a personal income tax. The Lone Star State, however, does collect a gross receipts tax from some businesses."
That means she may need to pay income tax on business earnings. You can check here http://www.window.state.tx.us/taxinfo/taxrates.html for more tax information in Texas. Check the Miscellaneous Gross Receipts Tax.
I'm not familiar with every tax code in every city of every county of every state. So you should contact local business regulators for help. The office that gives business permits/licenses should be able to help. Or a local SCORE office.
