tax ID number?

[ramsies11]

now, i have a welding business and my uncle since november has been my supplier of my cast goods, well, i need some cast goods and he has passed, his wife wont sell me anything i need but i did find this nice little place in memphis that will sell me what i need, my question was: i can get the stuff i need at wholesale price if i have a tax id number, if i get a tax id number, am i going to have to pay taxes on my business?

[Steve Sells]

last I heard all Income above $500 is taxable, but you should ask your accountant. Also as a minor I doubt anyone will give you any accounts, as minors can not make any binding contracts..

[David Einhorn]

If a minor pays cash on delivery, would anyone be reluctant to sell to him? I'm not a business expert and certainly not an expert on taxes or the law, but around here it seems that one gets a sales tax number when you start doing business. Also, I don't know about Memphis, but I have opened wholesale accounts and purchased from companies without providing my tax number. It seems that the economy is sufficient motivator to do business especially for cash. Also, at least one wholesaler in Maryland will not accept Pennsylvania tax numbers but will still sell to anyone that walks in the door at the wholesale price in return for payment at the counter.

[Larry H]

If you use a tax # to buy , you must charge sales tax when you sell. At one time I didn't file my quarterly return because I had no sales......( forty years ago ) I received a bill for $2000 from the tax man, I dropped that number right away !!

[ramsies11]

well, we make frequent trips to memphis (actually tunnica because my mom and aunt love slots) and i found a guy who can supply me with my cast iron goods i need, its just i save about 40-60% on the item depending on what it is, dont get me wrong this is a small business, if im lucky ill clear 1k a year. so i didnt know whether i should get a tax id number or just bit the bullet on profit margins.

[Steve Sells]

as I said... how will you get the tax number? see my first post.

its good to know what you are getting into before the tax man comes after your family (since you can not get the number yourself, I assume its parents necks on the line) also as LarryH pointed out, you have to file even if no sales that period, else they will file an extimated tax amount for you, based on average for your type of business, not your average sales in past reports, then add fines and interest.

I didnt say people wont sell to a minor, I said wont open accounts. this Includes the tax account with the gov't.

[matto]

if you are a sole proprietor you should be able to use your social security number as your tax id. the good part about a tax # is it keeps personal and business separate. as steve said if you make more than $500 you should pay taxes. remember that is after all business exspences are paid, (materials, tools bought, employee pay, utilities, fuel, rent, office supplies, ect...)

[Ric Furrer]

If you use a tax # to buy , you must charge sales tax when you sell. At one time I didn't file my quarterly return because I had no sales......( forty years ago ) I received a bill for $2000 from the tax man, I dropped that number right away !!

I got the same three times a year and now I am on an annual tax schedule....they send a large bill to get your attention..nothing more.

Ric

[HWHII]

Here in AZ you must have a registered business to get a tax ID number. You do have to pay taxes. I choose to pay them monthly, even if I have a month with no income I will still file the papper work. It is worth getting the tax number.

[ramsies11]

i probably wont end up getting one untill after diving school, which is after i turn 18.

[Bentiron1946]

Still AZ can be a pain in the buttocks about a tax numbers. I know some jewelers that have gotten them to save on supplies and it has ended up being more of a burden than the savings on supplies has been worth. AZ will harass you to death over a nickle.

[ciladog]

It seems that some of you are talking about Federal requirements and some are talking about States requirements. They are very different.

A Federal tax ID number also know Employer Identification Number (EIN) identifies entities that are not individuals such as corporations, LLC’s, estates, trusts, partnerships, etc. If you run a business as a sole-proprietorship and have employees and you deduct withholding tax, SS tax, Medicare, tax, etc. then you are required to have an EIN.

If you do not have employees your social security number identifies you as an individual and you do not need an EIN.

You file for an EIN online at the IRS website. However, some states will require you to get a Federal EIN before they will issue you a Certificate of Authority that will allow you to do business in your state or other states. Some states will issue the Certificate without you first obtaining the EIN. You can check your state with the link.
http://www.irs.gov/b...d=99021,00.html

Technically you need a Certificate of Authority from each state that you do business in. It requires you to report your gross receipts and collect sales tax and pay use tax to the state. It allows you to be sales tax exempt when you buy material if you collect sales tax on the finished product. Use tax is another whole can of worms.

With so many states in financial trouble more and more of them are requiring everyone that sells in their states to collect sales tax and that means at festivals and flea markets. Lots of flea markets now require that Certificate before you can rent a table.

[Bentiron1946]

It sure does cause troubles for vendors. An acquaintance of mine has quit coming to AZ since the troubles with shortfall. He only had modest sales here but it was on his way to more lucrative festivals so it was a nice stop in the winter and the weather was nice. However the estimated tax due kept increasing until it became a burden. Yes, they would refund the overage at the end of the year based on true sale tax collected but his next tax bill would seem to be even larger than the year before. He ended up surrendering his AZ Certificate and bypassed the state altogether. Rio Grande Jewelry Supply is a company that used to put on a big to do at the Tucson Gem and Mineral Show in February each year and would take orders for a some of their more expensive equipment and give some in depth jewelry classes. The State of AZ decided that this made them an AZ company and was going to tax them on all of their corporate income so Rio stopped coming to the Tucson show except to pass out catalogs. Kind of sad.