2007-02-05 09:12:52 · 3 answers · asked by sugarbud 3 in Business & Finance ➔ Taxes ➔ Other - Taxes
Maybe I should re-word my question.....I want to start a retail business re-selling merchandise. I want to know how to get a tax exempt number so that I can buy the merchandise with NO tax added to it so I can re-sell it. Thanks.
2007-02-05 15:07:00 · update #1
Thank you for re-wording your question. MANY small businesses believe once you get that magical number you are exempt from sales tax on every purchase they make. As you now point out that is not true. You can use the number to execute a resale certificate and buy inventory exempt from sales tax because you will charge the end consumer the tax.
Resale certificates should not be applied to a business' consumables; supplies or equipment.
Generally you register with the state agency that administers the sales tax. Their name will usually contain either Revenue or Taxation. In many cases they can be a sub-division of the state Treasury department.
You will probably also need to register locally (city).
2007-02-06 04:33:54 · answer #1 · answered by zudmelrose 4 · 0⤊ 1⤋
You don't. Businesses pay taxes too, including sales tax. You have to have a tax exemption number, you can file for this from your state - but you'll have to have the type of business they allow that for. A business typically pays more taxes than the private individual, even with all the tax allowances and deductions we are allowed.
2007-02-05 17:18:47 · answer #2 · answered by Amy V 4 · 1⤊ 1⤋
Many businesses pay higher taxes than individuals! For example, we have a personal service corp. If we have profit at the end of the year we are charged 35% federal. Our personal tax rate is MUCH lower. We pay sales tax just like everyone else.
Nothing is tax free, except for the illegal aliens.
2007-02-05 17:35:27 · answer #3 · answered by Dizney 5 · 0⤊ 1⤋