San Diego businesses are responsible for the collection of sale or use tax, as well as reporting and paying those taxes in a timely manner to various California taxation authorities. Tax codes can be quite complex, and businesses can find themselves in a deep hole quickly if they are not taking the appropriate steps to account for each step of production, sales and delivery of the products and goods they are providing. For example, if your business is employing labor to attach something to real property, that isn’t taxable. But if you are using labor to fix something on that property that is not attached to real property, you will owe tax.
Construction businesses are one example where the code (lets say the rules on construction) may be only a few paragraphs long, but the details of their business may be quite complex from a taxation point of view. The California Board of Equalization (BOE) has agents that specialize in managing differing areas relating to construction and real property. One example seems fairly straight forward: elevators. If your business is the installation of elevators in residential apartment and condominium projects, then the way you set up your accounts and the actual invoicing to clients can be quite critical from a profitability and taxation point of view. Some parts of the invoice will be taxable and some will not. And even if a business is doing things correctly, they still may be in for a fight with the BOE. Allen Barron’s clients appreciate the skill, knowledge and expertise Jan Allen and her team bring to the table. She focuses on helping them to set up their business and meet regulatory and tax compliance so that they can focus on generating new business and growing their company.
Call Allen Barron today for a free consultation at 866-631-3470 and learn how effective planning may help to reduce overhead and costs to your business and increase profitability. We will help you to take your business to the next level.
