Business

Missouri sales tax identification number

As a semi-retired contractor, I do some cabinet work in my shop for the completion of jobs I perform. Do I need a Missouri sales tax identification number to do this?

When products are sold to the final consumer, it is considered retail sales. A business making retail sales must get a sales tax number. If a contractor manufactures a product (cabinets) and sells it to the final user, that contractor must have a sales tax number and collect sales tax on that product. When buying supplies that go into the product, the contractor is exempt from paying sales tax on those supplies and will present a tax ID number to the supplier.

When a contractor is building cabinets as part of a remodeling job, the contractor will pay sales tax on the supplies that go into the job. In this case the contractor does not need to collect any sales tax on the final product and does not need to get a sales tax number.

More information about sales tax numbers is available at the Missouri Small Business Development Centers Web site. Specific questions should be directed to the Department of Revenue at 573-751-7191 or http://www.dor.mo.gov/tax/business/.

Chris Bouchard
Associate state director
Missouri Small Business Development Centers

Business start-up information

Is the CD31, Missouri Small Business Start-Up Kit CD-ROM information available on a Web site without charge?

Much of the material on the CD-ROM is available on the Missouri Small Business Development Centers' Web site. We offer, at a modest fee, the CD-ROM -- a thorough, conveniently organized package about starting a business -- as an alternative for learners who prefer that format.

Contact the SBDC nearest you to talk to one of our business specialists about your plans to start a business or about the challenges you face in operating an existing business.

Check our calendar of seminars and workshops to learn about business-related training sessions.

Chris Bouchard
Associate state director
Missouri Small Business Development Centers

How to incorporate

I am a pathologist and will work as an independent contractor. I am trying to decide how I should incoporate. If I incorporate as a LLC, will my business expenses be taxed as part of my personal taxes? If I incorporate as a professional corporation, will my business expenses not be taxed through my personal income? I am incorporating to protect my liability as well as to save on taxes.

When forming a professional corporation, you can elect to be taxed as an S-corporation, allowing the income to be taxed at your personal tax rate. Both a PC and an LLC offer similar tax benefits and protection. Your business profits can be taxed at the personal tax rate, rather than at the typically higher corporate tax rate.

Your question refers to business expenses taxed through your personal income. Business expenses are not taxed, only income is actually taxed.

I strongly urge you to consult a certified public accountant for any recommendations related to your legal structure, especially when related to tax implications. He or she will have a good understanding of your personal tax liability and future plans. Future plans can affect the legal structure decision because of tax implications and you need to consider your personal financial position when making this decision.

Greg Tucker
Small business development specialist

Cross marketing

My company makes martin houses, poles, feeders, etc. I would like to cross market my items with manufacturers of other garden items. Would you have any ideas for me?

To sell your product there needs to be awareness of it. This could entail an education process regarding the benefits of the product or service.

To cross market:

Make presentations to interested groups or organizations, such as bird watcher organizations.
Distribute free samples.
Give discounts or coupons to your customers and those of other manufacturers that make other garden or outdoor items.
Try to establish a partnership with nurseries or some of the local mass retail home and garden stores.

Imagine you are a customer who uses your product. Ask yourself, "What other products or services would I use?" Partner with retailers that sell those other services and products to the same customers you have or to prospective customers. Maybe you can do a packaged deal of your products and those of related merchants.

Virginia Wilson
Small business development specialist

Achieving sales goal

I am a sales consultant in rural Missouri. My goal is to sell 15 autos by the end of the month. With traffic so low, what would be some advice to help achieve this goal?

Here a few of the many pointers a sales representative can use to meet or beat monthly, quarterly or annual sales quotas for automobiles (or any other big-ticket items):

Former customers are the best prospects. Contact former customers and see if they are in the market for a car or if they know someone who is.
Borrowing an approach from the real estate business, the trick is to get the listing. In a multiple-listing situation, every realtor in your market is an extension of you. When another realtor sells a house you listed, you get the listing commission. So, can you get other people to sell for you by offering a referral incentive? If someone refers a client who later buys a car from you, the referrer should get some reward to ensure those referrals keep coming to you.
Are there other service businesses in your community with which you can combine efforts to offer a bundle of value-added services along with the car? For example car washes, gasoline, repair service, movie tickets, meals, etc.
During a holiday season try a holiday-theme promotion.

For other ideas explore marketing-ideas from the U.S. Small Business Administration. It may contain just the idea you need to trigger a winning effort to meet those sales goals.

Steve Holt
Small business development specialist

Updated 4/10/08