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View Full Version : Question about tax ID


ThreeBrats
05-13-2006, 03:15 PM
Hi,


I posted a while back on the general topic section, I forgot what my user name was so I had to register againsmileys/smiley5.gif


I wasn't sure how to work from home and had some typing and ebay experience...anyway, I think I've decided on ebay. Listing collectibles and some craft and crafty home decor stuff. Anyway, my question now is about a tax id number. If I'm selling one ebay, do I need one? Is there any reason for me to get one? I've noticed some place where I get my craft supplies offer a wholesale option if I have a Tax ID number. How does that work? Will I have to collect sales tax? Will it affect how I file my taxes? Most importantly, is it worth the trouble or will it save me so little that it's not worth what I'll save buying wholesale?


Any other info anyone has would be appreciated. I've sold on ebay a LOT before but mostly just collectibles that I was no longer interested in or some extras I had picked up to fund my hobby.


THANKS!


Joann


joyceb
05-14-2006, 08:54 AM
This is not a good place to ask for advice on taxes.



Best thing to do is ask your accountant or call your state tax agency



You can contact your area Small Business Development Center (http://www.sba.gov/sbdc/sbdcnear.html) and receive accurate information about your state and situation. Click on your state in the map and find one near you.



Much of the help you can receive from them is free.



Joyceb

amez1974
05-15-2006, 08:32 AM
I didn't ask the question, but thanks so much for posting the website. It has given all the information I've been searching for in one spot. I clicked on my state and then used the 1st stop business connection to make my own business kit based on exactly what I was needing. Very useful--thanks again


Amy


joyceb
05-15-2006, 09:50 AM
You are welcome Amy, good luck with your business



Joyceb

ThreeBrats
05-15-2006, 03:48 PM
Hi :)


Thanks for the info, I wasn't really looking for tax advice. I guess what I was really trying to get to was is it worth all the trouble to buy wholesale?


Thanks!


Joann

MrsTe
05-17-2006, 01:57 AM
to the last question - a FEDERAL TAX ID number is very easy to get and you can have it quickly.





Remember though, there is a STATE sales tax ID number to - ah and then you go into secretary of state business filings and fees, etc...

MrsTe
05-17-2006, 01:58 AM
one other bit of advice - your ID will say the business your in - so even having one wont "qualify" you to purchase wholesale from say a coffee place if you sell widgets for example

joyceb
05-17-2006, 09:32 AM
Your state sales tax number may qualify for wholesale purchases.
However individual companies will have specific requirements for buying
from them. Wholesale is rarely cost effective for an eBay
business. That is why it is recommended you sell inexpensive
items from around your house or found at yard sales to begin.



In most instances your tax id can get you into Markets such as Dallas,
Alanta, Kansas City, Chicago, Denver, Okala City, NYC, West Coast and
others. But negotiating with individual distributors or
wholesales is a different matter.



It is a good idea to keep in mind how the levels of merchandise pricing is reached.



Manufactures: build the products and sell to

Distributors who market them wholesale to

Retail outlets that mark up (2-1) for retail.

(At each level there is a mark-up)



It is also good to realize that once something is purchased at retail
or retail discounted, the value drops by about 75% or more.
Once it is used it may drop to less than 10% of purchase value.



There are exceptions for unique and special product that are in demand
and people will pay premimum prices for - but those are not the
norm.



On eBay when someone is selling they are often paying cents on the
dollar for garage sale or closeout prices. That is the
competition.



In most cases your SSN will be sufficient for opening a checking account and for using as a Federal Tax number.



But you should check with the Small Business Development Center,
Accountant or lawyer, if you have specific questions about the laws in
your state or area.



Building a business identity (brand) is important. So it is
a good idea to sit down and conceptualize your business, attach a name
that represents your needs and plan a way to build a complete business
around it.



Joyceb



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