The Single Filing Category exists for retail operations that also provide a professional service, and whose retail operation accounts for 80% or more of total gross receipts. As retail typically offers a lower tax rate than professional services, many businesses elect to file under the Single Category. If your total gross receipts is derived mainly from your labor, but you also offer goods for sale, you may not be a candidate for Single Category Filing.
Example of When to Single File
A hardware store that principally operates as a retailer of hardware goods, but also offers ancillary services such as tool sharpening, may elect to file under Single Category.
Example of When Not to Single File
An auto mechanic who principally sells their labor, but who may also sell auto parts in limited volume.
Single Category Filing is optional. If you elect to file under Single Category, but it is determined that 80% or more of your total gross receipts is not derived from retail, you may be liable for back taxes under every tax classification your business is liable for.
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