Theresa Arndt, CPA

Chances are as a small business owner you’ve heard of Form W-9...and if not, there’s good news – I’m about to tell you all about it 😉 . Maybe you’ve been requested to provide it to a customer, or maybe I’ve asked you to get one for a contractor you’ve paid.   But do you understand why you’re requesting this form (or why it’s being requested of you), and what its purpose is? The Form W-9 essentially is an informational form that helps with Form 1099-MISC processing (that’s our primary focus here at least). The W-9 lists the person’s/company’s name, entity type, address, taxpayer identification number (either SSN or EIN), and signature certification. This gives all of the necessary information needed to file a Form 1099-MISC, other than the actual dollar amount paid to the person/company during the year (which should be available in your accounting records). It also certifies that the person/business is not subject to backup withholding , which essentially means that you as ...

“Nexus” determines whether your business must collect and remit sales tax in another state.   If you have nexus, you must collect.   Nexus is a Latin word meaning connection.    Sales tax nexus occurs when your business has some kind of connection to a state.   Until this connection is established a state cannot require you to register and collect sales taxes. So, what creates nexus?   The answer to that question changed last year in a historic landmark case when the Supreme Court in South Dakota v. Wayfair overturned a 1992 court case Quill v. North Dakota . If you’re not familiar with this case then you need to keep reading, because it will have a huge impact on business owners.    What was the South Dakota v. Wayfair case all about? Before the Wayfair decision in June 2018,  Quill  served as the precedent for sales tax nexus. Under  Quill , businesses had to have a physical presence (e.g., office, store, warehouse,...