Taxes when accepting a Purchase Order being a Sole-Proprietor?

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".

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

It is simple to get a Tax Identification Number and register your business with the IRS....

http://www.irs.gov/businesses/small/article/0,,id=98350,00.html

good luck & bless

Answer 2

You can 1. Incorporate or 2. Not incorporate and get an assumed name. To do the latter, it's usally a matter of going to your county registrar and paying a small fee so that you can get an assumed name (or d/b/a). Then fill out an IRS Form SS-4 online or see an accoutnant to get a tax ID number.

Regardless of whether you do business as a corporation, as a sole proprietor with an assumed name, or as yourself as a sole proprietor, you must pay taxes on your NET income from a business.

--A Damn Fine Tax Advisor

Answer 3

What are doing about sales taxes? You probably need to register there too if your selling tangible personal property.

I agree, register with the IRS and get an EIN independent of your SS#