1. Understanding Sales Tax Implications
In many jurisdictions, interior designers and decorators are required to collect sales tax on merchandise sales. For instance, in California, if designers sell tangible personal property (e.g., furniture, window coverings), they must obtain a seller’s permit and collect sales tax unless the sale is exempt. This includes both the cost of goods sold and any taxable labor or service charges
2. Professional Fees and Taxability
Professional fees charged by interior designers may be taxable, depending on the nature of the services provided. In Florida, for example, an interior decorator’s fee is considered part of the selling price and is taxable when the transaction involves the sale of tangible personal property
3. Business Planning and Financial Projections
Developing a comprehensive business plan is crucial for interior design firms. A sample business plan for Barton Interiors outlines projected revenues and expenses over three years, highlighting the importance of financial planning in sustaining and growing a business
4. Regulatory Compliance
Interior designers must be aware of local regulations governing their business operations. For instance, in Ohio, all sales are presumed taxable unless the purchaser provides a completed exemption certificate. Vendors are required to retain these certificates to substantiate tax-exempt sales