Track and research
We track the ever-changing requirements across every location in the U.S. and provide you with current information that can be hard to find.
As your compliance partner, CT helps you track requirements and ensure your registrations are set up correctly
Compile and submit
We compile the forms you need, sift out the ones you don’t, and submit your applications in the required formats, timeframes, and locations.
Monitor and deliver
We keep an eye on the process for you and confirm upon completion so you’re never left to wonder about your registration status.
What are the corporate tax and reporting requirements?
Every corporation must file returns and pay taxes at the federal and state levels, including in its formation state as well as any other state where it transacts business. Business may also be responsible for collecting taxes paid by others and remitting those amounts to the government. Each business has its own specific requirements, which are determined by the business activity, location, and other details.
Most states have sales and use taxes. These are taxes imposed upon the gross amount involved in certain transactions. Sales taxes are primarily imposed on the retail sale of various types of tangible personal property. Several states also impose sales taxes on rentals, sales of services, and other transactions. Use taxes are imposed upon the use, storage, or consumption of tangible personal property not subject to the sales tax. The use tax rate is always the same as the sales tax rate. Businesses are generally required to obtain a license or permit before doing business in the state.
Common types of taxes you may need to register for
- Withholding tax: A corporation employing people in states with an income tax must withhold this tax from their wages.
Unemployment tax: Employers are required to obtain unemployment insurance and fund compensation programs.
Sales tax: Imposed on the retail sale of various types of tangible personal property as well as services, rentals, admissions fees, and other less tangible items.
Use tax: Imposed on the use, storage, or consumption of tangible personal property that is not subject to a sales tax.
Frequently asked questions
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We have just formed a small business LLC and were wondering if we are eligible for a sales tax exemption?
Generally, sales tax exemptions apply to resellers of goods, non-profit organizations, and the sale of specific goods listed by the state. Often you will have to first apply for a sales tax permit in order to obtain a tax exemption. In some states there is an additional registration process to obtain a tax exemption and in some states there is no registration required. For additional help please contact CT Corporation to consult a licensing specialist.
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Is Commercial Cleaning subject to sales tax?Some states tax commercial cleaning services. The provision of products/supplies in connection with commercial cleaning services may also be subject to state and local sales tax.
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How can I obtain a Sales Tax Exemption Certificate?
Sales Tax Exemption Certificates can be used by exempt institutions to purchase property or services without having to pay a sales tax. Exempt organizations often include charities, non-profits, educational, or religious institutions. Charities must often provide proof that they have already obtained federal 501(c)3 tax exemption status. Some states limit sales tax exemption to charities with specific purposes. The sales tax exemption may also be limited to specific types of items or uses. Often the exemption only applies to items directly related to the charitable, religious or educational functions of the exempt organization. Generally, to obtain a sales tax exemption certificate, an exempt institution must first have a valid sales tax account. That account number is put on a form certificate issued by that state and the certificate can be used to purchase goods tax free.
In other states, the exempt institution must take another step and apply for a sales tax exemption certificate. If the state approves the application, a certificate and exemption number is issued by the state. These certificates are generally issued for one or two year periods.
CT Corporation will help charities and non-profits obtain all licenses and registrations, minimizing time-consuming and costly delays. For additional help please contact CT Corporation to consult a licensing specialist.
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What is a Sales Tax Identification number?
Although Sales and Use Tax registrations would seem to be the most basic of business license filings, the requirements can vary greatly from state to state, county to county and sometimes even by municipality. These applications can be confusing and time consuming.
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What is Use Tax?
Although Sales and Use Tax registrations would seem to be the most basic of business license filings, the requirements can vary from state to state, county to county and sometimes even by municipality. These applications can be confusing and time consuming.