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Tax ID #
Posted by:
Mark Syck
(---.mgm.bellsouth.net)
Date: April 28, 2006 05:07PM
Is there any advantage to getting a tax ID #? Other than being able to get blanks and supplies at a better price? Re: Tax ID #
Posted by:
Joe Kassuba
(---.dhcp.knwk.wa.charter.com)
Date: April 28, 2006 06:08PM
Taxes have to be paid no matter what for all things purchased and resold. If something that was originally purchased for resale is then used by the purchaser either in their business or personally then taxes are usually due. Bottom line is when a buisness becomes the end user the applicable use taxes must be paid. Check with your states dept. of revenue to determine how to go about this. States have differing tax structures but all require that all applicable taxes be paid. Federal excise taxes are usually applicable too.
So be informed. Joe Kassuba HIS Rod Shop Re: Tax ID #
Posted by:
Mark Syck
(---.mgm.bellsouth.net)
Date: April 28, 2006 08:22PM
That all I understand...Let me rephrase. I know the profit margin will be greater for me, but, is the hassal of keeping track of the taxes worth the profit? It seems like this is the only way a person can get a break, is by buying wholesale. Re: Tax ID #
Posted by:
Mike Barkley
(---.nap.wideopenwest.com)
Date: April 28, 2006 09:06PM
You have to keep track and pay taxes whether or not you have a tax ID. The difference if you don't have it and sell something, you are in violation of the law and all it would take is one phone call from an upset customer (or competitor). There is no way to avoid it (legal, that is) Mike (Southgate, MI) If I don't want to, I don't have to and nobody can make me (except my wife) cuz I'm RETIRED!! Re: Tax ID #
Posted by:
Mark Syck
(---.mgm.bellsouth.net)
Date: April 28, 2006 10:04PM
I guess the biggest advantage would be avoiding jail or stiff fines...lol Re: Tax ID #
Posted by:
steve parks
(65.214.202.---)
Date: April 28, 2006 11:17PM
Mike Barkley Wrote:
------------------------------------------------------- > You have to keep track and pay taxes whether or > not you have a tax ID. The difference if you > don't have it and sell something, you are in > violation of the law and all it would take is one > phone call from an upset customer (or competitor). > There is no way to avoid it (legal, that is) > > Mike > If I don't want to, I don't have to and nobody can > make me (except my wife) cuz I'm RETIRED!! So you're saying if a person builds a rod using components buy at retail, sells the rod and turns a profit, he has to pay taxes? That doesn't sound right. Re: Tax ID #
Posted by:
Jay Lancaster
(12.174.137.---)
Date: April 29, 2006 04:27AM
I'd rather contact my CPA with questions like this instead of relying on hearsay...even from a great place of information like this one. This is especially true when our state & local tax laws differ they way they do across the country.
Jay Re: Tax ID #
Posted by:
Mike Barkley
(---.nap.wideopenwest.com)
Date: April 29, 2006 09:24AM
Jay's right about where to get your info, but Steve, if you make and sell a rod (or anything else), you owe state and federal excise taxes on the sale. Mike (Southgate, MI) If I don't want to, I don't have to and nobody can make me (except my wife) cuz I'm RETIRED!! Re: Tax ID #
Posted by:
steve parks
(---.mob.bellsouth.net)
Date: April 29, 2006 12:13PM
...even if all the components are bought retail?
Geez! The gubment wants all our money! Re: Tax ID #
Posted by:
Mike Barkley
(---.nap.wideopenwest.com)
Date: April 29, 2006 01:36PM
How you buy it has no bearing on anything whatsoever when it comes to taxes. Wholesale only means that you don't pay the Sales tax on what you buy because you are going to be reselling it and the sales tax will be paid by the final buyer. Use tax (the equivelant of Sales Tax) is supposed to be paid to your state on anything that you buy wholesale for yourself or to be used in your business. Whether you purchase wholesale or retail has nothing to do with income tax, sales tax, Federal Excise tax at all. No way around it, if you sell it, you owe various taxes. Check with an accountant!! Mike (Southgate, MI) If I don't want to, I don't have to and nobody can make me (except my wife) cuz I'm RETIRED!! Re: Tax ID #
Posted by:
Mike Naylor
(---.state.md.us)
Date: May 01, 2006 07:19AM
You don't need a Federal Tax ID# to own a business if you don't have any employees AND work out of your home (in Maryland). You can still get wholesale prices from any vendor- as long as you can prove you own a business, which you can do in several ways (faxing the paperwork from the State, for example). Sorry, only registered users may post in this forum.
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