what is the difference between a federal id number, a resale license/number and a business license?
2007-08-12 07:17:13 · 3 answers · asked by rikdi2 1 in Business & Finance ➔ Taxes ➔ United States
he purpose of a "resale license", as you call it, is two fold. First it allows you to purchase items from wholesalers or retailers and avoid paying sales tax on the purchase. Secondly it is used by the state as a means of reporting your sales and the sales tax that you should be collecting. But for the second you would have no way to submit sales tax collected from your customers. The "federal ID number" also serves a number of purposes. The two most common are, first to identify the business and secondly as a means to report employee taxes (SS & Medicare) if you have employees. You could not operate a business as a corporation and sell products to the publick without both.
2007-08-12 13:52:44 · answer #1 · answered by ? 6 · 0⤊ 0⤋
If you have a state sales tax permit, you can buy things tax exempt for resale.
This is a sales tax issue and, as such, a state issue. It has nothing to do with your federal ID number. Go to your state's department of revenue website and apply.
2007-08-12 08:29:41 · answer #2 · answered by Wayne Z 7 · 0⤊ 0⤋
Its all just Government red tape
And amke work for some stooge
look @ http://ccbp.vze.com for a great product to resell or buy the patent for it @ http://fe1.2ya.com and make and sell it yourself
2007-08-12 07:49:29 · answer #3 · answered by Anonymous · 0⤊ 1⤋