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Looking for MN Sole-Proprietorship Friendly Supplier/s

1470 Views 7 Replies 3 Participants Last post by  TableSyrup
Ok, I am a legitimate Sole-Proprietorship based out of Minneapolis Minnesota

I am having problems with wholesalers NOT willing to set up an account because I do not have, need, or need under state or federal law, a Tax ID Number.

Can anyone please recommend some particular suppliers of Garments???

I would prefer something close to me so that shipping is faster, but obviously at this point I am willing to deal with most anything.

Currently I buy through another company at mark up. Lame.

Thank you!
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Wow. Ok, well... TSC just set me up....
(Good thing I didn't mention Table Syrup 'CLOTHING' heh? hahahaha.)

I guess that might cover me....

Probably jumped the gun on the post, sorry... was just irritated with having spent an hour on the phone having companies shoot me down. I guess they don't like money.
So you don't sell and collect sales taxes? I don't see how you can avoid all of the things in the first paragraph and still be in business? Unless you are a not for profit and the wholesalers should take that number as long as you are legitimately involved in the decorated apparel business.

Do I need a Minnesota tax ID?

You need a Minnesota tax ID if you:

  • Make taxable sales or leases in Minnesota;
  • Perform taxable services in Minnesota;
  • Withhold Minnesota income taxes from employees’ wages;
  • Withhold Minnesota income taxes from construction contractors;
  • Make estimated business tax payments;
  • File a Minnesota corporation franchise, S corporation or partnership tax return;
  • File fiduciary income tax returns as an estate, trust or personal representative;
  • File or pay MinnesotaCare taxes or special taxes, such as alcohol, tobacco or insurance premium taxes;
  • Have use tax to report (read Sales Tax Fact Sheet 146 and Sales Tax Fact Sheet 156 for details); or
  • Have solid-waste management (SWM) taxes to report register for sales and use tax online.
For additional information, see Do I need to register?

If you already have a Minnesota tax ID, you may need to apply for a new one if:

  • Your business changes its legal organization, or
  • You are required to apply for a new federal employer ID number.
You do not need a Minnesota tax ID number to:
  • Apply as a nonprofit for an exemption from Minnesota sales tax. Instead, complete Form ST16.
  • Apply for federal exempt status as a nonprofit organization under Internal Revenue Section 501(c)(3). Go to the IRS website.
  • Open a bank account for your business. If you need a federal employer ID number, go to the IRS website.
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I just got going with this in Jan-Feb, and so far I am only printing 'clothing line' type product for myself. But I am getting a lot of requests to print for others, which is a taxable service

This is all kind of new to me, cause everything I've done prior to this (outside my full time day job) has been non-taxable service (obviously income tax tho) in which case I have claimed the revenue and filed any itemized deductions along with my personal income taxes

What I know so far

1st - Clothing in MN is not taxable
If I buy clothing, print, and sell retail = no sales or use tax
(Unless I wasn't charged sales tax at the time of purchase)

2nd - the FABRICATION SERVICE is taxable

So, yes, before the end of the year I will need to file for a Tax ID Number IF I PRINT FOR OTHERS.... which I AM planning to do...

Retail Sales
Most retail sales are taxable in Minnesota. A
“retail sale” means any sale, lease or rental of
tangible personal property for any purpose
other than resale, sublease or subrent.
Sales, leases and rentals are taxable regardless of quantity or whether the item is new
or used, unless an exemption applies. Some
services are also taxable.

Use tax
If you buy a taxable item for your own use
without paying sales tax, you probably owe
use tax. The tax rate is the same for both
sales and use tax, and the same exemptions apply. Use tax is due on taxable items
and services used in Minnesota if no sales
tax was paid at the time of purchase. The
general use tax rate is the same as the state’s
general sales tax rate, 6.875 percent. All general local sales taxes also have a corresponding use tax, which is at the same rate as the
local sales tax.

Keep track of your purchases subject to
use tax and report them when you report
your sales tax. Also, keep a record of the
purchases on which you paid use tax, noting
the date reported and paid.
If you are located in an area that has local
taxes, be sure to also report the local use tax

Individuals who owe use tax, but are not
required to hold a sales tax permit, can file
a use tax return annually, regardless of the
total amount of purchases. These returns are
due by April 15 of the following year. To file
the return and pay tax electronically, go to
our website at Minnesota Department of Revenue and
login. Enter your Social Security number,
select “Individual use tax” and follow the
steps until you receive a confirmation

I know I'm going to have to sit down with an accountant pretty soon.
May also file an S Corp or LLC.... just haven't sat down with this attorney yet ($1500)
Not sure if the Tax ID needs to change when changing my filing type/status, so I will deal with that after the attorney...
Will as soon as things get rolling.
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Sounds like you have a handle on it... best of luck!
I wouldn't exactly say I have an absolute HANDLE on it :eek:

It's definitely outside any forms of taxation I've dealt with so far, so yeah I need to sit with an accountant before going balls out ;)
I'd go ahead and get the sales tax license. We don't charge sales tax on clothing in PA either, but one of the first things I did was file for a sales tax id. Had NO ISSUE getting wholesale accounts with suppliers immediately. You will have to file quarterly returns (maybe less or more), but you designate your total gross income, minus income not subject to tax, owe ... nothing (except if you have any use tax to claim).

Anymore, most states let you file online, so you need to put a mark on your calendar and take 15 minutes to collect your figures and make the phone call.

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Previously, other stuff I've done, everything was non-taxable service... so much easier/cleaner.... just filing income and offsetting with deductions.

This will be easy too, once I do it. And shoot, really, this is more along the lines of the norm for most businesses, so it can't hurt to know and get used to.

I'm a newbie with this printing thing, and a young dude.... so lots to learn.
This year will be a big lesson for me ;)

And who knows.... might barely do any work with it.

So far I've popped out about 300 pieces or so...?? All for promotional pieces.... so far have given em all away.... have about 115 left.
That might make a nice write off heh?
If I remember correctly I can deduct ~50% of that expense ;)
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