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Sales tax collection for professional services

    • 1 posts
    December 21, 2012 6:19 AM EST

    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

    • 11 posts
    December 22, 2012 12:41 AM EST

    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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