Since I posted my question I have learned a lot about sales tax. I registered my business with the state and have remitted sales tax for my whole year's production. Every invoice I now create has sales tax on it. (It's 8.8% around here so it's an "ouch" for my clients, but it does remind them that I am running a professional business.)
Taking business deductions for art expenses on my federal taxes made it essential that I also become a registered business with the state and do the sales taxes. There wasn't an option to wait it out until there was a financial advantage in terms of sales tax I might save on my paint and canvas purchases.
It was a pain in the neck to go back over my records and factor sales tax in, but going forward I think it will be fairly simple to track the paperwork. One advantage (aside from reducing the concerns of an audit!) is that filing quarterly forces me to review my business' financial position four times a year instead of just annually as I had been doing.
Seeing where I am each quarter reminds me that I maybe shouldn't go out and buy all those cool studio gadgets I see on various websites, or at least not 'til next quarter!
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