How does a sole-proprietor accept a purchase order?

Question

I own a small online business of wholesale goods. Im talking to a school now that wants to purchase around $350 worth of goods from me.

My online business is not really registered with BOE or anything like that. It is just under my name I believe.

Right now, a school wants to purchase from me.

Theyre asking me to fill up a form, which includes filling up the "Business Name" and "Tax Identification Number".

How do I deal with this, given my situation? Will there be any problems in the future, maybe with taxes or with the IRS, since the business is under my name, and I dont really submit any paperworks etc or file taxes on this business of mine.

Thanks!

Chris

Thanks for the responses.

Just to follow up on this, would you guys suggest that I still push through with the order, that I have to give my SS, name, and DBA? This is my first time accepting a purchase order, and I dont really want to lose this client just for this small reason.

My only concern is that giving my SS to the client might lead into a "audit" problem in the future, if ever irs investigates me.

I do plan however to sign up for a business permit this April, so this probably be my only time doing a PO under my name.

Answer 1

If you run a wholesale business online and don't file tax returns for it, you're in violation of the law. Prepare to have everything you own taken away from you when you're audited (and you will be audited, because one of the companies you do business with will surely be audited, and when they can't produce proper documentation for their purchases from you, you will be investigated).

I suggest you call a tax attorney NOW and discuss your situation with him. If you're lucky, you will get away with only a fine, and not have to serve any time in prison.

Tax evasion is serious business.

Answer 2

If you are using quickbooks or something similar, you can just print out an invoice/statement. You can also just get a blank pad from like Office Max and hand fill it all in.

Company name, address is just that, what you call yourself and the address where it is located. Tax ID is just that, your tax ID number but since you are S.P. then that ID will be your SS #.

I do cosmetic paint work and work for myself. I have a business name but the real name is Mike Smith (not really my name) D.B.A. (doing business as) Custom Paint Shop (not my company name). So I might go around calling myself Custom Paint Shop, but my legal business name would be Mike Smith d.b.a. Custom Paint Shop.

D.b.a. is what you are. Since you don't file taxes and all, you are illegal unless you fall under the level of taxes for sales, etc. But since you are gonna do a sale to another, a school even, and give over a receipt. This could later lead to a full audit on you for the tax department will see the receipt but not have record of your company.

To be proper you should track all you do on like quickbooks, track all you buy and spend for the company, money you pay to yourself, etc. Its not as hard or as bad as you think. Now if you are doing this just to make a few extra bucks on the side, that is one thing, but if this is your main career, then I would start to do things right.

Plus if you do things right, you can actually get money back. My first 6 yrs in business I was small enough and spent enough that each year I never paid taxes in but the Gov. cut me a check for $2000 each April.

Ignore some of your answers, you do not need a tax ID to be in business for a dba uses the SS #. And majority of small biz's don't need a license to do business, specially if it is an internet business. If you do need one, its like $30 bucks.

Answer 3

if you are a legitimate business you have to register with the city you are doing business in - they will assign a tax-id or some identifier stating that you are a business - if you are just selling stuff like on ebay then you must identify yourself as an individual and don't have to fill in business name or tax-id - it would be a good idea to identify yourself as to how you are doing business

Answer 4

Your business name is your name. Your TIN is your SSN unless you have an EIN.

You'd better get straight with the IRS on your taxes though. Your business income is fully taxable and if you evade taxes long enough the IRS will come looking for their due.

Answer 5

You are committing tax fraud.

You need to get a tax id, so that you can conduct your business legally. I would try the courthouse, to see if you can get paperwork there.