I heavily rely on the internet to tell me how to do things. When I opened my first store in September of 2010, the internet was my best friend. I had no previous experience with business or finances, but I made it fine until I needed to learn how to report my sales tax to the government.
Absolutely no where could I find a “how to” on paying the Arkansas Sales and Use Tax for my business. There are many forms on the web and I couldn’t be sure which one I was to use to report my taxes. It was frustrating. I stressed about if for a month and a half. I kept asking myself “Why are there no step by step processes for this on the internet?” Since I had no one to guide me and no previous experience with business, it was frustrating. If you are running into the same problem, here is a quick “how to” on reporting your taxes by mail.
Your Arkansas Retail Permit and Tax Forms
After that month and a half of stressing over my ignorance, I finally received my Retail Permit from the Arkansas Department of Finance and Administration. As I ripped it open, I discovered in it, one tax return form. They had only sent me the first month’s form, but I later received forms for the remaining months in the year 2010.
As I skimmed it, I realized a few things. The first was that you can report all of your sales taxes on the one form. That is, State, City, and County. And the second was that you do not pay anything to the federal government when it comes down to sales tax. No one had told me that! The last thing I found in the packet I received with my permit was a list of percentages for each city and county in Arkansas.
Just find your city and your county and calculate each individual amount accordingly. Then, you can write one check and send it to one place! How easy is that?
Sending in your tax forms
Filling out the forms are very simple. If I can do it, you definitely can. In the packet will be a set of instructions about each individual field. Any specialty taxes like alcoholic beverage taxes are explained in length.
Also in my packet was a sheet of labels with “Arkansas Department of Finance and Administration” printed on them with the address. Just lick it, and stick it on your envelope. If you didn’t receive a sheet of labels, the address for the Arkansas Department of Finance and Administration can be found at the bottom of their home page. I have provided a link below.
A tip for those with interest bearing accounts
If you have an account that gains interest, you might find it beneficial to wait until later to send your payment in. You are given about twenty days to mail your payment. The longer you wait, the longer the money stays in your account and the more interest you gain. But, if your account is a normal checking account, it’s probably best not to wait.
I hope this is beneficial to those of you just starting up your business. The first few months are hard, but once you create your own system for running things, it becomes second nature. Good luck to all.