Knowledge
Sales Tax & Business Admin
U.S. sales tax is state and local, not one national rule. Whether you charge tax can depend on where you work, what you sell, whether labor is taxable, and whether the customer is residential, commercial, or exempt.
Use these guides to understand what to ask your accountant or state revenue department. For federal estimated tax, start with IRS Form 1040-ES guidance and adjust as your income changes.
When to hire a bookkeeper or a CPA
When to hire a bookkeeper, an enrolled agent, or a CPA comes down to hours, payroll, and the tax questions you have stopped being able to answer yourself.
Which contractor business records should you keep?
The small business records to keep — estimates, contracts, receipts, mileage, payroll, insurance certificates — and roughly how long each one has to last.
Contractor licensing: what to check before bidding
Contractor license requirements change by state and by city, so check four things before you bid: your own record, the job's location, your bond and insurance, and what the bid must carry.
Deducting tools and equipment
How business tools and equipment are deducted: materials and supplies, the de minimis election, Section 179, bonus depreciation and business-use records.
Is labor taxable? It depends where you work
Is labor taxable? The answer depends on the state, the type of work and how charges are stated. Compare construction, movable-property repair and fabrication.
Mileage and truck costs: what you can actually deduct
The contractor mileage deduction comes down to two methods, a choice you make in the vehicle's first year, and a log that holds up if anyone asks.
Quarterly estimated taxes for self-employed contractors
Quarterly estimated taxes when you are self-employed: why the four dates are not quarters, how the safe harbor works, and how to size the payment.
Resale certificates and tax-exempt customers
A contractor resale certificate goes to your supplier; an exemption certificate comes from your customer. Here is how to use one, verify the other, and keep both on file.
Contractor sales tax by state: where to start
Contractor sales tax by state is really four questions: which states can make you collect, where to register, whose rate applies, and whether the job is taxable at all.
Materials, labor, and who owes the sales tax
Check tax on contractor material purchases and customer charges separately, then include nonrefundable tax and any eligible credits in your job pricing.
Separating business and personal money
Why a business bank account matters for a sole proprietor or LLC, what the bank asks for, and how to pay yourself without mixing personal and business money.
W-9 and 1099-NEC: what contractors give and file
W-9 vs 1099 for a contractor: the form you fill out before the first check, and the one that shows up in January — from both sides of the payment.
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