State Sales Taxes

[Valerie Gudorf]

Recently, I've received several very promising inquiries for portrait commissions from persons residing in Maryland. I've just started my fledgling portrait business and am experiencing a rather steep learning curve.

I wonder, for instance, about the collection of sales taxes on such commissions. I reside in Virginia and will be painting the portraits in my studio here. However, I will be transacting business (contracts, releases, etc.) in Maryland at the home of my clients. Preliminary sketches and the taking of reference photos will be carried out in Maryland, as well as the collection of a deposit. To which state am I required to pay sales taxes on such commissions: Virginia, Maryland, or both states?

I would like to avoid as many potentially costly legal blunders as possible. What have been your collective experiences under such circumstances?

[Chris Saper]

Valerie, the topic of sales tax has been addressed in some depth in several other threads. If you use the "search message" button at the top of any page you can access prior information. Try this: http://forum.portraitartist.com/sear...der=descending

[Linda Nelson]

Hi Valerie,

Congratulations on your new business! To answer both this short term issue, and those you haven't encountered yet, I'd step back and find a tax accountant who specializes in artists. I found mine through The Atelier - the principals of The Atelier had their tax guy come in, who specializes in serving the artist community, and talk to the students. He has been a godsend. If there is one in your area, then he's sure to be known by the artistic community, so perhaps you could call around and ask people who they use.

Hope this helps!
Linda