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View Full Version : I have an EIN, do I also need a resellers ID to buy wholesale without paying tax


gdecave
Jun 26, 2010, 05:21 AM
I make and sell items at trade shows. I buy supplies to make these items. I have an EIN. Can I use this number to buy these supplies without paying sales tax, or do I need a resellers tax ID

Fr_Chuck
Jun 26, 2010, 07:53 AM
A EIN gives you no special right to buy without paying taxes, you will need a state tax ID number where you file and pay the taxes to that account on items you sell.

excon
Jun 26, 2010, 08:23 AM
I make and sell items at trade shows. I buy supplies to make these items. I have an EIN. Can I use this number to buy these supplies without paying sales tax, or do I need a resellers tax IDHello g:

You aren't reselling your SUPPLIES. You're using them up to make YOUR product. There IS a way to get them WITHOUT paying taxes, though. It's just not the way you're thinking...

Pay the sales taxes at the store, and keep track of them. You'll be able to deduct the cost of your supplies from your federal income tax on your schedule "C", and you'll be able to deduct the sales taxes on your state and local tax returns.

excon

gdecave
Jun 26, 2010, 11:42 AM
Thanks Chuck and excon. I tried to get a tax ID online, but I'm always directed to an EIN form. My business is new, so I haven't filed yet, and the sales I made were at the shows in other states. Should I just go to an attorney?

excon
Jun 26, 2010, 12:47 PM
Hello again, g:

If I were you, I'd go to a CPA. He's going to be cheaper than a lawyer. He'll know what licenses you'll need better than a lawyer would. He'll get your EIN or your Tax ID - whichever you need. And, he can set up your books for you and answer these tax questions better than a lawyer can.

excon

Fr_Chuck
Jun 26, 2010, 01:03 PM
Sales tax numbers come from the state, ( the Dept of Rev) for the state. Nothing to do with IRS and Feds.

You may be able to online, (or maybe not) depending on your state.

Once you get it, you are required to file your sales tax ( the tax you charge people for the items you sell at your booth)

Also remember if you have been selling things for some time, you were suppose to already have that number and should have been charging tax on items you are selling.

gdecave
Jun 26, 2010, 01:10 PM
Thank you Chuck and excon. You have both been very helpful.
Geraldine