3 Important Multi-State Tax Facts for Medical Device Companies
If you’ve been following these series about multi-state tax facts, you know we’ve already covered software and SaaS companies. What about medical device companies?
Because the term “medical device” covers a wide range of instruments, machines, accessories or other tools that can be used both externally (such as tongue depressors) or internally (like pacemakers), there are a lot of multi-state tax questions that arise in this industry.
3 Multi-State Tax Facts Medical Device Companies Need to Know About
Fact 1: As with so many other areas of state tax, a key driver is “nexus,” or taxable presence. Employees of medical device companies often travel frequently to trade shows, doctors’ offices, and for other demo and training opportunities. But because they may not actually sell their products at these events, they often aren’t even aware their business has established nexus across state lines. It’s important to note that third party representatives (beyond just a company’s own employees) can create nexus, as can the presence of tangible property in a state. So, if a doctor’s office maintains piece of demo equipment in his/her office and the medical device company retains title to that equipment, nexus has been created. Or if the doctor helps to engage in the sale of the equipment, she may have become an agent of the company, thereby creating nexus.Read more
3 Important Multi-State Tax Facts SaaS Companies Need to Know
Last week we discussed various multi-state tax issues software companies often overlook. This week we look at another industry that often misses sales and use tax ramifications on their sales: Software-as-a-Service (SaaS). Many think that because it’s not a tangible product or even clearly defined as a service (at least according to traditional definitions), these companies don’t need to worry about state sales tax. Keep reading to find out why this could be a costly mistake.
3 Multi-State Tax Facts SaaS Companies Need to Know About
Fact 1: SaaS companies regularly establish nexus. Just as every business that engages in various activities across state lines, SaaS companies need to be aware of how they may be establishing a taxable presence, or nexus, across the country. For SaaS companies specifically, this is often done in a few ways:
- Sending employees or third-party contractors to customers in other states as a “traveling salesforce.”
- Renting server space in various states across the country.
- Housing servers in more than one state.
3 Important Multi-State Tax Facts Software Companies Need to Know
What do software companies need to know about when it comes to multi-state tax issues? Last year we shared an overview of nuances many in the field don’t think about, but need to consider when it comes to their organization. As a large portion of the technology industry, it is important that software companies are aware of how matters such as nexus, as well as individual state sales tax and income tax laws, may affect them.
3 Multi-State Tax Facts for Software Companies
Fact 1: Even if you don’t create and sell a physical product, your company may still have "nexus" (or physical presence) in multiple states, making you responsible for following their state’s tax laws (both for income tax and sales tax). We often ask questions like these to determine if a software client may have nexus in multiple states:
- Do your employees travel to other states for anything related to sales, including software installation and training?
- Does your business either have servers or rent server space outside of your home state?
- Does your company have or rent property in multiple states?
FOCUS ON CALIFORNIA
This month, we travel back to the mainland (and the home state of Miles Consulting Group) to the 3rd largest state in the country and the 6th largest economy in the world- the Golden State of California! With its sunny and dry coastal climate year round (except for January 2017!) and easy access to the ocean and mountains, California has always been seen as an ideal resort destination. In the 1960s, popular music groups such as The Beach Boys promoted the image of Californians as laid-back, tanned beach-goers - which, of course we all are!
California is home to the second most populous city in the United States- Los Angeles, which is home to the Hollywood entertainment industry. San Francisco, 400 miles to the north, is where you will find the Golden Gate Bridge, Alcatraz Island and cable cars.
Multistate Tax: The Top 3 State Tax Issues for 2017
Happy New Year!
I always like the fresh feeling of a New Year – a clean desk, a new calendar, and a relaxed and grateful frame of mind from coming off of the holidays. I’m particularly excited about 2017 because it’s a year of special milestones and anniversaries for me – both personally and professionally, and I’m a big believer in celebrating those special occasions. I’m not sure exactly what the year will bring, but I have big expectations for it.
Cheers! An Update on the Taxability of Beer
Cheers! The start of the New Year is just around the corner. How are you going to celebrate? Maybe with a beer or a glass of champagne? Well, did you ever think about how that beer or champagne came to be? Or how it came to be taxed? In this article we discuss some of the implications on the taxing of beer and wine and a change lurking in the New Year.
All breweries may receive some help from Uncle Sam in the New Year. A new federal law will lower excise taxes on both craft and macro brewers. So both beer makers and beer drinkers may soon find a lower bar tab. The rapid growth of the beer industry has created struggles for regulators who are responsible for taxing and regulating beer and other alcoholic beverages.
FOCUS ON HAWAII
Aloha! This month we travel across the ocean to the island paradise of Hawaii. In the state, you can attend a luau to experience true Hawaiian culture, relax on the beach or hike in one of the many tropical forests or mountains.
Hawaii is unique because it the only state made up of part of the volcanic Hawaiian archipelago, which consists of hundreds of islands spread over 1,500 miles. At the southeastern end of the archipelago are eight islands known as the state of Hawaii. They are: Niihau, Kauai, Oahu, Molokai, Lanai, Kahoolawe, Maui and Hawaii.
Due to its central location in the Pacific Ocean and its 19th-century labor migration, Hawaii’s culture is strongly influenced by North American and Asian cultures, in addition to its indigenous Hawaiian culture. This is exhibited by the many customs and food cuisines that Hawaii has to offer. For example, it is customary to bring a small gift for one’s host (i.e., a dessert). Many Hawaiian plates have been influenced by Polynesian, Asian and American foods as well.
Rainmaking – Consider Your Pricing
A few weeks ago, I posted here about putting my Jumpstart Your Rainmaking program on sale. It was Black 
Friday and I wanted to participate! (Of course, most of the time, we think of “on sale” as pertaining to tangible goods.) How many of us who sell professional services would ever think to put them “on sale”? It’s not something I had ever considered before. But let’s imagine it for a minute…how the billboard ads might read….
Multi-state sales tax consulting services…”Call to sign up for a multi-state nexus review in the next 24 hours, and I’ll cut my fees by 25%”
IT support: “For December only, we’ll give you all the support for half the price!”
Realtor: “Today only – Offer on your house? We’ll cut the commission by 15%”
Not likely. Right? So, I’m not advocating that we’d ever really be in the business of putting our services “on sale”.
Washington's Minimum Wage Hike: What Do You Need To Know?
Last month’s election results included more than determining the next president and allowing recreational marijuana in California; states across the country also passed legislation changing employment laws – specifically minimum wage and sick pay. I thought it would be interesting to take a look at one of these states (one of our neighbors to the north): Washington.
Case Study: Minimum Wage & Paid Sick Leave in Washington State
Washington isn’t new to interesting legislation. Last year they passed a few statutes regarding nexus in the state and a five-point internet sales tax solution. What about the recent election? The state passed a law regarding minimum wage and paid sick leave.
Although Washington State’s minimum wage was already the 8th highest in the country and more than $2.00 above the federal minimum wage, voters passed an initiative that will significantly affect employees’ wages.
Rainmaking - Making the Sales Process Easier
My business contacts and blog readers have heard from me quite a bit lately because I’m actively promoting my quarterly webinar series – Jumpstart Your Rainmaking. I’ve been sending out email blasts, writing more blogs about Rainmaking, and telling everyone I know about this. Why? Because I’d like to fill the virtual conference room. As you know from reading my blogs, even though I’ve been building my business for years, the Rainmaking training part of my business is relatively new. The multi-state part is over 15 years old. And I’m trying to draw some attention to the new.
There’s a section in my Rainmaking training where I discuss sales mindset, and why sometimes it’s difficult to get into the sales mindset. That’s because cold-selling can be hard. And honestly, selling the Rainmaking training has been harder than I thought too. It’s different than selling multistate tax services. So, I thought it would be a good discussion.
