Is a Laundromat Considered Retail? A Look at Laundry Businesses Classification
Do you own or manage a laundromat or other laundry business? If so, you likely want to know what classification it is classified as for legal and tax purposes. It turns out that the answer isn’t so simple! Depending on the type of services your business offers, it could be classified as retail or service-based.
In general, a laundromat is typically considered to be in the retail sector since customers buy a product (i.e., clean clothes) from the business. However, there are some exceptions if your laundry business offers additional services such as dry cleaning or alterations. In these cases, your laundry business would likely be classified as a service-based business since customers are paying for labor in addition to any products they purchase from you.
It’s important to note that the classification of your laundry business could have implications on tax liability and other legal obligations such as licensing requirements and payroll taxes. Therefore, it’s important to consult with an accountant and/or lawyer when making this determination in order to ensure that all applicable laws are being followed properly.
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