im going to start an online antique reproduction shop. the import shop i plan on buying my goods from say i need a tax id number to buy from them whole sale. how do i get one? do i need to name my business before i apply. what all is involved?
2006-12-24 12:02:10 · 8 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ Other - Taxes
First you must select a name for your business. You may find that someone else has used the name, so pick out first, second and third choices.
You will then need to secure an Employer ID number (EIN) from the IRS (even if you never intend to have employees). This basically identifies your business to the government, and obligates the business to pay any Federal taxes that are applicable. The procedure for obtaining this is to file an SS4 with the IRS. You may be able to do it online, check the link supplied here.
Next you will need to register with your state. The procedure varies from state to state to state, check either with your state's income tax service, department of state, or business administration. If you check the website for your state government, you'll probably find that they have a hotline that you can call to get this going. You will receive a tax authority certificate with your business name and EIN. This is what you need. It is your permanent "license" to do business.
Finally, if you are doing business with suppliers in your own state, you may have to fill out a state tax form which you give to the supplier, which gives them your EIN. This identifies you as a business, and exempts your wholesale transactions from sales tax.
2006-12-24 12:32:20 · answer #1 · answered by anywherebuttexas 6 · 1⤊ 0⤋
It has nothing to do with taxes, unless its for a Sales & Use tax number (meaning you are a reseller and the wholesale company will not charge you sales tax). They are referring to an EIN, or an employer identification number. This is essentially a SSN for a business. Some wholesale companies will accept a SSN, some may not. Many do not sell to a company who does not have a bank reference or other professional references as very few accept your typical forms of payment, such as credit cards. They usually sell on credit. If they have your SSN or EIN, and you don't pay, they can report this to the right agencies. Regardless, you probably don't have the references to do business with them. However, you can always ask them directly.
2016-03-29 05:54:32 · answer #2 · answered by Anonymous · 0⤊ 0⤋
The tax ID that they are referring to is your state sales tax ID, also known as a reseller's permit. This allows you to purchase items for resale and not pay state sales tax. The idea is that when you sell the items you purchased, you will be charging your customers sales tax, so the item is not being double taxed.
To apply for the sale tax ID, you need to request it from your state sales tax department. You are supposed to apply for one BEFORE you start business.
This has absolutely nothing to do with the federal tax ID. In fact, if you are operating your business as a sole proprietorship (Schedule C business) and you don't have any employees, you don't even need a federal tax ID. You can use your social security number as your federal tax ID.
2006-12-24 16:18:35 · answer #3 · answered by jseah114 6 · 0⤊ 0⤋
Contact the federal government office in your hometown location and tell them that you want to apply for a federal tax ID number. There are specific forms for you to fill out and there may be a fee involved. You do not need an attorney for this, you are able to handle all of this for yourself if English is a first language for you.
2006-12-24 12:07:01 · answer #4 · answered by maggiepirsq 4 · 0⤊ 1⤋
Mostly good answers from above.
each state has different rules but luckily your state wants your tax dollar (no I don't need to know what state you live in to know that) and has a web site with a link to help get you started.
You can get an EIN on line go to irs.gov and do a search for EIN--you'll find the form.
Unless you going to use your god given name, you have to file a form with the IRS to let them know you'll be using an assumed name. If you incorporate you won't need to get an assumed name but you will have to file papers with you particular state.
2006-12-24 17:09:36 · answer #5 · answered by italiatom 2 · 0⤊ 0⤋
You need to name your business the same name as is or will be on your checking account after you get an occupational license from the city or county in which the business will be located and most of the government agencies will check to see that the location is zoned commercial before issueing a license.
2006-12-24 12:08:34 · answer #6 · answered by bestbet77 3 · 0⤊ 1⤋
Go to the IRS website they have that from for getting your tax id number online and you can print it out and mail it in. There may be a fee though.
2006-12-24 12:14:56 · answer #7 · answered by Anonymous · 0⤊ 1⤋
http://www.givecash.li/
2006-12-24 12:07:38 · answer #8 · answered by Anonymous · 0⤊ 1⤋