Online Guide Helps Keep Your Contracting Business Out of Tax Trouble

Keeping up with the tax obligations that go with operating your business is a vital part of being a successful contractor. The state Board of Equalization (BOE) is offering an online guide to help construction contractors understand the tax issues unique to their business.

The Tax Guide for Construction Contractors has information helpful to those starting out in business, or those who want to expand their existing operations and don't want to make a tax misstep.

The guide is separated into sections that cover different tax-related issues. They are:

• For those new to the state tax collection system, a Getting Started section covers registration with BOE, filing returns, account maintenance, and payment options.
• The Industry Topics section discusses and defines sales and use taxes; recordkeeping requirements, construction contract types; the tax implications of materials, fixtures, machinery, and equipment; tax obligations of subcontractors; and taxation based on job site worked.
• The Specific Jobs section gives real-life scenarios of work situations, and tax implications, that contractors in different classifications may encounter.
• Finally, the Resources section provides links to web-based seminars, BOE forms and publications, statutory and regulatory information, and access to live help from BOE customer service representatives.

Another valuable BOE guide that explains California sales and use taxes for contractors is Tax Tips for Construction and Building Contractors.