Friday, May 21, 2010

Virginia Department of Taxation and New Financial Regulation Legislation

Hopefully, the title of today's blog entry did not put you to sleep!

This afternoon, I finalized my registration with the Virginia Department of Taxation for Sales & Use Tax, Withholding Tax, and Pass Through Entity Tax. Although the process is fairly long and tedious, they have made it easy by making it available online via their iFile site. And the Commonwealth also makes the whole small business entity creation easy with their Business OneStop system. It is very much like a wizard for new business owners to make sure you fill out all of the paperwork and registrations to start your business. This site is located at:

I also was prepared to register with the Virginia Employment Commission (VEC) but found that I am not liable for unemployment tax and am not required to register until I have employees in Virginia and meet a number of specific criteria. I'll keep that on my "to do" list for the future.

I am currently watching the New Financial Regulation Legislation passed by the Senate and now going to House/Senate conference committee. One of the amendments added to the bill would provide some regulation around how banks can charge individual retails "per swipe" of each credit and debit card. The current percentages taken by the bank for each swipe are fairly high and do not leave a lot of room for negotiation for the small business owner. It ends up resulting in the owner needing to charge higher prices in order to cover the fee. It will be very interesting to see where this goes.

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