As one of the most prominent filing deadlines for businesses approaches, now is a good time to explore what is needed to become a sales tax preparer in Maryland. There are strict laws that govern who can file taxes for other companies, so it’s important to be aware of them before you start your new career.
Keep reading if you want to learn more!
1. Know the basics of tax law
The first step to becoming a sales tax preparer in Maryland is to familiarize yourself with the various tax laws. These include knowing what types of items are taxable and which ones receive tax exemptions. Even if you think you know these rules, it’s important to review them before taking the state sales and use tax license exam.
2. Familiarize yourself with the Maryland Sales and Use Tax Code
Make sure you understand the laws that govern certain facets of your business, such as knowing how to file a tax return and what types of fees you will be responsible for. As a sales tax preparer in Maryland, you will not only need healthy familiarity with state laws but also federal ones as well. You can take classes on some of these subjects or study the information on your own.
3. Prepare to take a test on your knowledge of this code
The Maryland Department of Assessments and Taxation (DAT) requires sales tax preparers to pass their state-specific sales and use tax license exam, which covers the specifics of the law you must adhere to as well as basic accounting principles. This is the only way you will be able to get your sales tax preparer license in Maryland.
4. Become licensed by taking an exam through the state’s Department of Assessments and Taxes (DAT)
After you pass your exam, you will need to fill out an application form before paying the filing fees that are associated with it. It’s best to turn this form in within 30 days of passing the test, as you only have a limited amount of time before your license will expire and you will need to take another one.
5. Find out how much it will cost you to start this profession, including licenses, education requirements, and other costs
The licensing exam costs $50, but you will have to pay a good deal more than that if you want to get started with this career. You will need to purchase a license from the state Department of Assessments and Taxation (DAT) which costs $150. Be prepared for additional expenses such as office equipment and supplies throughout your new business.
6. Make sure you have enough money saved up for your business expenses before you get started as a sales tax preparer in Maryland
Last but not least, make sure that you actually have the funds to cover all of these costs and start your new profession. It may take some time to become successful, but when it does happen, there’s a good chance you’ll make a lot of money by helping the businesses in your area comply with tax laws.
Becoming a sales tax preparer in Maryland is a rewarding career choice, but it is not without its fair share of obstacles, similar to other career paths. Make sure you know all of the licensing requirements, fees, and other general do’s and don’ts before committing to this profession.
Also make sure that you are prepared for your new business by having enough money saved up for purchasing equipment and supplies, as well as for covering your state-mandated license. Once you’re ready to take the jump, your new career is sure to be profitable and fulfilling.