Medical Billing Forum

General Category => General Questions => : jpositos January 03, 2018, 10:23:40 PM

: STATE TAXES???
: jpositos January 03, 2018, 10:23:40 PM

Hi,

If one of clients is located in a State with State tax (Example: CA) and your business is located in a State with no State tax (Example: NV), are we as medical billers pay the State Tax for the State where our client is located?

Thank you!!!

Jocelyn

: Re: STATE TAXES???
: Michele January 05, 2018, 12:06:17 PM

I believe your business follows the laws in the state it is doing business in.  But this is not my scope so I would double check that.

: Re: STATE TAXES???
: jpositos January 05, 2018, 04:15:56 PM

Hi Michelle,

You have been in business for a long time and probably have clients from other States.  Do you file and pay State taxes to each of those States where your clients' offices are located in addition to the State where your business is located?  There are only 10 States that do not have State Taxes.

The reason I am asking is that I met a CPA that said I should.

Thank you.

Jocelyn

: Re: STATE TAXES???
: PMRNC January 06, 2018, 04:21:08 PM

You have been in business for a long time and probably have clients from other States.  Do you file and pay State taxes to each of those States where your clients' offices are located in addition to the State where your business is located?  There are only 10 States that do not have State Taxes.

THIS depends on how your business is setup. I am an LLC because my billing company is a division of another business. I do NOT have to file by state for my out of state billing clients.

There are too many exceptions to this rule.. for example.. IN NJ.. You can be based in another state and if you do business in the state of NJ you must have your business registered and be registered as a third party billing company in NJ.

In NY.. if your business is located in any state but you do business in NY, you won't want to charge % of collections since in NY it's illegal for physicians to enter into a fee-splitting contractual relationship.

My answer is to consult with an attorney in addition to your accountant. There are so many laws/regs dependent on state  domicile and doing business in that state that it's best to consult with attorney in addition to an accountant.

: Re: STATE TAXES???
: Michele January 08, 2018, 10:57:09 AM

Linda is right, you need to check with an attorney.  We do not pay taxes for business in other states.  We do not do business in NJ.

: Re: STATE TAXES???
: jpositos January 27, 2018, 09:21:42 PM

Thank you Ladies!!!  It is a business atty who told me to consult with a CPA :-)

: Re: STATE TAXES???
: PMRNC January 27, 2018, 09:39:35 PM

Thank you Ladies!!!  It is a business atty who told me to consult with a CPA :-)

Yes, some states require you to pay sales tax, I think Texas is one of them..there are a few more I'm sure.