Forums: Discussions for entrepreneurs and small business.

I'm in the final stages of launching a new business that provides a mobile based social media marketing service. Technically it works and I have presented it to five CMO's and they all want to use it. :) The business will be an LLC based in DE. Do I need to collect sales tax from firms that use SR's service? 

I have researched several states and it appears to me that my service is categorized as professional service and thus exempt from state sales tax. 

 

Thanks,

Andrew

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It sounds like you are right on track. However, tax laws do vary from state to state.  I would ask around similar companies just to get a feel for what they are doing, or ask a lawyer/accountant that is familiar with tax laws in your state.  They would likely be willing to answer a simple question like that for no charge.  

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The Money Track
Independent Financial Advice & Personal Financial Planning