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No tax on labor in most states
From Scott Hamlin at Internet Swiss Army Knife on 19 June '99
replying to Web Designers--Do You Tax? posted by Janet S.

Hi Janet. Most states do not charge a tax on labor. You will, of course, have to pay income tax based on how much you take in, but otherwise you're okay.

If you sell software, computers or anything like that then you will need to charge tax... which means getting an ID number from the state and other fun stuff.

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