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Discussion Starter · #1 ·
I see theis question asked a lot on the forum when people are getting into business they want to get a "taxpayer ID" and A sellers permit.. Well you don't need a "Taxpayer Id' You already have one it is called you social securiy number. below is info from the IRS on the matter. I think most would qualify if they are here in The US. A sellers permit is something you shuold have so you can do business and be able to collect sales tax for the state.

"An Individual Taxpayer Identification Number (ITIN) is a tax processing number issued by the Internal Revenue Service. It is a nine-digit number that always begins with the number 9 and has a 7 or 8 in the fourth digit, example 9XX-7X-XXXX.
IRS issues ITINs to individuals who are required to have a U.S. taxpayer identification number
but who do not have, and are not eligible to obtain a Social Security Number (SSN) from the Social Security Administration (SSA)."
 

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Lou- I am new to the industry and a little confused. Could you please clarify for me if I don't need a taxpayer id number, what is the number that I do need to get in order to be able to order wholesale and how do I go about getting it?
Thanx in advance
 

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Discussion Starter · #4 ·
There is a difference in Taxpayer ID and a federal tax ID. A federal tax ID is known as a EIN
You will need an EIN if you answer "Yes" to any of the following questions.
Additionally, if you provide health insurance for your employees, you may need a National Standard Employer Identifer (NSEI) for your electronic health transactions. To determine if you need an NSEI, refer to the Department of Health and Human Services' NSEI frequently asked questions.

Do you have employees?
YES NO

Do you operate your business as a corporation or a partnership?
YES NO

Do you file any of these tax returns: Employment, Excise, or Alcohol, Tobacco and Firearms?
YES NO

Do you withhold taxes on income, other than wages, paid to a non-resident alien?
YES NO

Do you have a Keogh plan?
YES NO

Are you involved with any of the following types of organizations?

Trusts, except certain grantor-owned revocable trusts, IRAs, Exempt Organization Business Income Tax Returns
Estates
Real estate mortgage investment conduits
Non-profit organizations
Farmers' cooperatives
Plan administrators
YES NO

If you answered no to any of theose questions you do not need a federal TAX ID.
 

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badalou said:
Actually I mean "yes" as it came from the IRS and I copied it exactly as it was.. If you answer yes you need a fed TAX ID. Check it out for yourself.
I know, as Greg said you just got the tense around the wrong way around a little bit. Yes to any and you do, no to all and you don't... means the same thing :)

badalou said:
Oh by the way you name is spelled wrong.. it is LOUIS, just like mine.. just kidding..
My name's Lew-iss from the Welsh, rather than Loo-ee from the French :)
 

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onthego1 said:
Could you please clarify for me if I don't need a taxpayer id number, what is the number that I do need to get in order to be able to order wholesale and how do I go about getting it?
Lou answered the other half of this, hehe.

You will ne a Sales Tax License or Resale ID Number (the actual name varies from place to place). This is registered with your state government (department of revenue in Colorado), and is what you need to legally sell products and tax them. Wholesalers will ask for this number to verify that you have the ability to charge tax for your products (so they don't charge YOU tax - products are only supposed to be taxed in their final form) and to make sure they aren't selling to the general public.
 

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Twinge said:
Lou answered the other half of this, hehe.

You will need a Sales Tax License or Resale ID Number (the actual name varies from place to place). This is registered with your state government (department of revenue in Colorado), and is what you need to legally sell products and tax them. Wholesalers will ask for this number to verify that you have the ability to charge tax for your products (so they don't charge YOU tax - products are only supposed to be taxed in their final form) and to make sure they aren't selling to the general public.

ok, so I'm in Minnesota where we don't charge tax on clothing. That means that i don't need a reseller's ID, correct?
 

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SlogoMogul said:
ok, so I'm in Minnesota where we don't charge tax on clothing. That means that i don't need a reseller's ID, correct?
Maybe, maybe not. You probably won't to do business - but you might need some sort of document to order supplies through most wholesalers. Your best bet would be to look up inofmration on your state's website (likely with either the department of revenue or secretary of state).
 

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Twinge said:
Lou answered the other half of this, hehe.

You will ne a Sales Tax License or Resale ID Number (the actual name varies from place to place). This is registered with your state government (department of revenue in Colorado), and is what you need to legally sell products and tax them. Wholesalers will ask for this number to verify that you have the ability to charge tax for your products (so they don't charge YOU tax - products are only supposed to be taxed in their final form) and to make sure they aren't selling to the general public.
thanks , twinge! okay, i know i asked this before in another thread, but i'm still confused. perhaps that is because i'm back in new york. :) also, things have moved forward since that post, so i now really need to be clear. when i posted before, i didn't know for sure what was going to happen. (i apologize in advance for being a little cloudy about this stuff. to the folks who answered before, please forgive me.)

since you sound like you have a handle on this, twinge, here goes: i am in new york city. the BRAND NEW silk screening machine, the silk screener, the first stores that will carry the shirts, and eventually the fulfillment system will be in the metro-detroit area. should i apply for the resale certificate/ID# here in new york? if so, will it cover me no matter where i operate? or should the folks in detroit get the RC/ID#? extra info: i was planning to begin as a sole proprietorship, but now that there are others involved, i was planning to start an LLC. but that probably won't happen for another month or two.

thanks again!

veggie
 

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Well, technically your place of business is where YOU operate.

It will be very difficult to tell the government that you are a sole proprietor (as of right now), live in New York, but run a business based in Michigan.

If you become an LLC, you should be able to have either place as your business address. You should check the tax implications, filing fees, and requirements in both states, and make a decision on which state would be best for your company.

But if you are wanting to take legal steps in your business now (tax id#, resale #, registering your business) and you are a sole proprietor, you don't have an option of where to that.
 

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vegbyrd said:
since you sound like you have a handle on this, twinge, here goes: i am in new york city. the BRAND NEW silk screening machine, the silk screener, the first stores that will carry the shirts, and eventually the fulfillment system will be in the metro-detroit area. should i apply for the resale certificate/ID# here in new york? if so, will it cover me no matter where i operate? or should the folks in detroit get the RC/ID#? extra info: i was planning to begin as a sole proprietorship, but now that there are others involved, i was planning to start an LLC. but that probably won't happen for another month or two.
Ah, I'm not the most knowledgeable about this area (perhaps I don't have quite the handle on it that it appears? ;). Since I've never personally run a business 'out of two states', so to speak, I really can't say for sure.

I think you should check with someone in the know if possible - talk with local state employees about what you'll need for your specific situation, or try finding the info off your states' websites. I imagine you can probably talk with someone at a local office about this for free, though you may need to schedule it ahead or wait a while.
 

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Re: Taxpayer ID- Minnesota

Twinge said:
Maybe, maybe not. You probably won't to do business - but you might need some sort of document to order supplies through most wholesalers. Your best bet would be to look up inofmration on your state's website (likely with either the department of revenue or secretary of state).

I looked but am still unsure about whether I need this. Does anyone who has started their business in Minnesota have more insight to this? I understand that if I was providing a taxable service(custom shirts) i would need a resale ID but I will be just selling my pre-designed t-shirts to consumers....and maybe wholesale at some point. I am in the planning stages of my business now. Also.....does anyone have the sample copy of that t-shirt business plan discussed in another thread? Let me know because i would really like to get it from someone. Thanks, Tony
 
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