Videography LLC Sales Tax

Forum|Forum|1 year ago
August 28, 2024
1 reply
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Hi I just started a videography/photography/marketing LLC this year in Texas. I also rent out my equipment to people.

Do I have to pay sales tax on those paid rentals I provide?

Also Should I be collecting 1099s from those rentals and videography services?

Thanks,

Josh

FranklinF

Congrats on your NEW ENTERPRISE !!!

Most jurisdiction impose some form of sales tax. Please check with your local tax authorities. Most local taxing authorities do NOT play games with their Sales Tax Collection, including, but NOT limited to incarceration, depending on the severity of the infraction.

About collecting 1099's from contractors paying for the rental services received from your business:

If a partnership is paid more than $600 during the tax year, then the partnership must receive a 1099-NEC for services rendered.
No 1099's are required to be issued to C Corporations, or to S Corporations.
A Single-Member LLC (SMLLC) is a disregarded Entity that files a 1040, and thus, if paid more than $600 during the tax year, then the SMLLC must receive a 1099-NEC for services rendered.

Do I have to pay State Taxes?

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