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Sales tax is one of the most confusing and anxiety-inducing topics for photographers, yet it's crucial for building a legally compliant business. In this episode, Tiffany breaks down everything photographers need to know about sales tax in plain English – from understanding what's taxable to implementing collection systems that actually work.

Whether you're a portrait photographer working locally or a wedding photographer traveling across state lines, this episode gives you the clarity and confidence to handle sales tax correctly. Plus, Tiffany shares what to do if you haven't been collecting sales tax (spoiler: don't panic – there are solutions!).

What You'll Learn:

  • Why sales tax is a "trust tax" and how personal liability works (even with an LLC)
  • Which photography products and services are taxable in different states
  • How to determine where you have "nexus" and need to collect sales tax
  • The 7-step process for implementing sales tax collection in your business
  • Common sales tax mistakes that can trigger audits
  • What to do if you haven't been collecting sales tax (hint: amnesty programs!)

Episode Highlights:

[00:02:15] Why Sales Tax Matters for Photographers

Tiffany explains why ignoring sales tax can lead to devastating consequences, including personal liability even if you have an LLC. She shares real examples of photographers who faced $15,000+ in assessments.

[00:08:45] Sales Tax Fundamentals

Learn the basics: all states tax tangible items (prints, albums), but rules for services and digital files vary dramatically. Plus, understand the difference between destination-based and origin-based states.

[00:11:30] Understanding Nexus

Discover when you need to collect sales tax based on physical presence vs. economic activity. Includes specific scenarios for portrait photographers, wedding photographers, and those selling online.

[00:15:20] 7-Step Implementation Process

Tiffany walks through her proven system for sales tax compliance, from determining nexus to setting up collection systems and meeting filing deadlines.

[00:21:30] Getting Compliant If You're Behind

Don't panic! Learn about Voluntary Disclosure Agreements (VDAs) and state amnesty programs that can help you get compliant without crushing penalties.

Resources Mentioned:


Conduct a sales tax compliance check-up:

  1. Identify where you have nexus - List all states where you perform services or sell products
  2. Research taxability - Use our guide to understand what's taxable in each state
  3. Verify registration status - Confirm you're registered where required
  4. Set up tracking systems - Plan how you'll track and remit sales tax

Community Q&A:

"I shoot about 10 weddings a year in neighboring states. Do I really need to register for sales tax in each state?"

The technical answer is you need to follow each state's rules, but check for:

  • Exemptions for occasional/isolated sales
  • Whether you exceed economic nexus thresholds
  • Each state's specific rules for out-of-state photographers (all covered in our guide!)

Key Quotes:

"The corporate veil that might protect you from other business liabilities does not apply to sales tax."
"Sales tax compliance isn't just about avoiding penalties and audits. It's about building a professional, sustainable business that stands on solid legal ground."

Connect with Tiffany:

Join our free Facebook community: Financially Focused Photographers

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5 episodes