This sales tax blog series was written by Dakota Design Company and evaluated by CVW Accounting, 2/24/25.

Where interior designers source products and furnishings from impacts profitability and has sales tax implications, and we see a variety of approaches. Traditionally, interior designers purchase from manufacturers, showrooms, and other sources who sell to-the-trade exclusively. Interior designers typically need to show that they have a legitimate interior design business and that they have a sales tax permit that allows them to make tax exempt purchases.

But many interior designers also make purchases—on behalf of their clients—from retail outlets or shops that sell to the general public. They may make this choice for a variety of reasons: there isn’t a design center or to-the-trade only showrooms in the designer’s area, their clients desire merchandise from sources such as Pottery Barn or West Elm, it’s convenient to purchase from high-volume retailers such as Home Goods, or the interior designer sources vintage and antique items for their clients.

These sourcing choices have a significant impact on the amount interior designers can earn in markup on goods sold.

This sales tax blog series was written by Dakota Design Company and evaluated by CVW Accounting, 2/24/25.

Doing the right thing regarding sales tax can be challenging for small business owners. But most business owners do want to do the right thing. And even more business owners want to avoid the risk for tax audits, tax penalties, and payment of back taxes. So in this article we’re going to make sure interior designers are aware of their responsibility. 

If you are purchasing to-the-trade-only tangible goods, and selling them to your clients, you already will have a sales tax permit (that allows you to make purchases without paying sales tax), and should understand how to invoice your clients for the appropriate amount of sales tax on sales, and how and when to remit those tax dollars to your state Department of Revenue for state and local sales tax. For any interior designer who needs a refresher on these sales tax basics, please read this post that covers all this need-to-know information. 

Calculating sales tax on a product or service  is fairly simple. First you need to determine whether the item or service is taxable, and if so, you need to know the applicable tax rate. Most states’ Department of Revenue websites include a sales tax calculator (look for something called Sales Tax Rate Calculator, or look for Calculate Sales Tax Rate). By entering the applicable zip code, you can find the correct tax rate for that area. 

This sales tax blog series was written by Dakota Design Company and evaluated by CVW Accounting, 2/24/25.

Sales tax is often a topic that prompts questions among interior designers. And we don’t blame you. No business owner wants to get it wrong and risk tax audits and/or penalties.  

For an overview of the basics of re-selling and related sales tax, see this blog post. And to dig into the particular sales tax rates you need to charge your in-state clients, read here. 

Another complex topic that needs to be tackled is how and when to tax out-of-state clients and purchasers. 

We also cover the protocol if your business is in an origin-based state but your client is an a destination-based state.

Ah, the joy of taxes. But we’ve got you covered! Subscribe to The DTS Files to unlock this post.

This sales tax blog series was written by Dakota Design Company and evaluated by CVW Accounting, 2/24/25.

Sales tax is a complex topic, and one that prompts many questions from interior design business owners. This post is part one of our Sales Tax Blog Series.

First, if you are purchasing to-the-trade-only products, and selling them to your clients, you already will have a sales tax permit (that allows you to make purchases without paying sales tax). You should understand how to invoice your clients for the appropriate amount of sales tax on transactions and how and when to remit the sales tax you collect to your state Department of Revenue for state and local sales tax. For any designer who needs a refresher on these sales tax basics, please read this post that covers all this need-to-know information. 

You’ve finally made it to the end of a project, the furniture is installed, everything is in place… and yet, something feels unfinished. The excitement you expected from your client? Yes, they love it, but there’s still something left to be desired.

And, maybe they don’t fully realize it, but you do. Because YOU know the power of styling.

When styling and accessorizing aren’t part of your interior design process, the project never truly feels complete. Read more to learn why.

One of the questions interior designers ask us all the time is, “How should I help my client budget for their construction project?”

At Dakota Design Company, we're all about knowing your numbers and ensuring your clients have a full understanding of what their project will actually cost. 

Because let’s be real, there’s nothing worse than starting a project thinking it’ll be $40K, only to find out you’re actually looking at $150K by the time everything's done. 

No one wants to get hit with a surprise like that.

So, let’s dive into this: How do you help your clients budget for projects with construction?

Join The DTS Files for my advice and insights.

Welcome back to the first 2024 edition of Dakota Design Company’s Guest Expert Interview series on the blog. We’re thrilled to share expertise from female business owners and leaders in the interior design industry—from interior photographers to social media managers, financial advisors, and branding experts.

Each of our expert guests was selected because they can share their unique insights and perspectives on a range of topics that will help any interior designer take their trade and business to the next level. These experts are Dakota Design Company insiders, and many of them have worked directly with us and our clients in the past. We hope you enjoy this series and that it brings you new insights and confidence as you grow your business!

We asked certified public accountant Caroline Van Wassenhove, Founder and President of CVW Accounting, to share three numbers every interior design business owner should know to ensure success.

Join The DTS Files for my advice and insights.

Landing a large interior design project comes with many benefits, the most obvious of which is a corresponding large fee! A large project may also provide marketing opportunities (new, fabulous project photos for your website, getting published, referral opportunities from higher-end clients, working with reputable builders or seasoned architects, etc.). Many designers feel a large project is also the best opportunity to really flex their creative muscle by having the chance to execute innovative ideas at a grand scale and generally from start to finish.

But large projects can also feel risky. You’ll likely need to turn away other work, you may have an extended timeline that’s difficult to pinpoint, there may be significant unknowns, you may need to rely more heavily on your team, and you may need to pivot many times as you work through all the phases. And then there is that anxiety that comes along with biting off something that feels daunting: Yikes, how will I EVER get this done!?!?!?!?

I know a large project for some may not be a large project for others, so here are a few definitions:

Join The DTS Files for my advice and insights.