virginia and sales tax

[TAXMAN]

For my Virginia friends. I have a schedule c(sole prop) dba ( mowing service)Has employees. Started another business that needs to collect and pay sales tax. Also has employees. Uses same FED # for both. How do I register this second business to collect and pay the sales tax. IRS says use same FED # which I am ok with. Its just that Virginia sees all payroll coming through 1 number, but the sales tax is connected to business #2.

[Gail in Virginia]

I am not sure that I understand what you are asking.  Sales taxes are based on sales, not payroll, so it should not matter that your client is using the same FEIN for both businesses - just what the sales are in Virginia.  If they buy anything that they don't pay sales tax on in business number 1 that could be an issue if a sales tax audit is conducted because of business #2, but payroll should not be.

[TAXMAN]

Gail what I am asking I have 2 schedule c business. Different names for each. One collects sales tax the other does not. How to I get the sales tax registration to attach to the one that does since I have only one fed ID.

[Gail in Virginia]

As far as I can tell, the state does not match up sales with the schedule C so I don't know why you are trying to attach the registration to one business.  Since Virginia does not (yet!) tax services for sales tax purposes, many business such as garages have gross income that is different than their sales so the Schedule C never matches the sales tax report. 

[KATHERINE]

I will think to form another, because they are two difference business lines anyway.  It will get so confused because if you put into same tax id, then you will have same book, then you have to book sales as taxable and non taxable and report on the sales tax return. If they share same bank account, then later if you have sales tax audit, then you will have to prove the non taxable part.   Why not get another EIN, and set up another payroll and open another bank account and keep them separate and clean.