|Posted by propertyglo on April 14, 2012 at 12:55 PM|
In Arkansas, a cleaning business if residential or commercial must collect and remit sales taxes to the Department of Finance and Administration. If you are thinking about hiring a cleaning service in Arkansas make sure you do your homework. Does the company have a business license? Do they charge sales taxes? Do they screen the employees they hire with background checks? Are they Insured? Are they bonded? Are you entering into a contractor agreement where the cleaning service is responsible for payroll taxes, workers compensation, labor laws, etc. You may want to visit with an attorney before you answer an ad out of the newspaper. What you do not know could hurt you, and cost you money down the road. Below is an article I found online that I want to share on this blog today.
I own a Maid Service in Arkansas. I was not aware that I am required to charge sales tax on my services. I was audited by the DFA and they gave me a bill for $ 31,000.00. I hired an attorney. He said we had 2 options. 1. The DFA said they would take the interest off and I would owe $ 28,000.00 to be financed by them for 5 years which is $ 600.00 per month (I am a small business and cant afford that). 2. Offer and compromise in which I give them all of my bank records and write in a amount I can pay to see if they accept it. I really cant afford to pay them at all. Due to the rising gas prices and groceries, I have lost several clients and am struggling myself. I did talk to someone that told me to find out if they could go after me personally. If they couldn''t, he said I might shut down my business and reopen it as a different name. Please help.
Read more: I own a Maid Service in Arkansas. I was not aware that I am ... - JustAnswer http://www.justanswer.com/tax/1ami7-own-maid-service-arkansas-not-aware.html#ixzz1s2Btwt5o
Once again, I cannot stress enough how important it is to hire a company that is legal, and ethical in every situation.