posted on October 5, 2002 11:55:45 PM
i am looking into buying wholesale and one of the forms i was trying to fill out requires a tax id # along with a copy of the tax certificate. at the risk of sounding very ignorant what exactly is that and how do i go about getting one?
posted on October 6, 2002 06:06:23 AM
it was pretty much just a form to open a wholesale account with them. i found the information and all i need to acquire one but like you said i dont have any employees so i dont see why i need one. i could use my ss# but they want a copy of the tax certificate. i guess i could alwasy email them and ask them if they really need this and why. cant hurt.
posted on October 6, 2002 09:04:00 AM
The wholesaler wants your reseller permit number. Why? They don't want to collect sales tax. How do I get a reseller (tax id) number? Simple forms to be completed, remember you're collecting sales tax for the state/county, they will make it easy for you to register. Reporting is a PIA but something that must be done.
dd
[ edited by vvalhalla on Oct 6, 2002 09:05 AM ]
posted on October 7, 2002 04:21:46 PM
Punksushi, usually is correct in his/her post.
"i am looking into buying wholesale and one of the forms i was trying to fill out requires a tax id # along with a copy of the tax certificate. at the risk of sounding very ignorant what exactly is that and how do i go about getting one?"
Your tax id # can either be a federal employer id # which you will only need in 2 instances. First, you have employees. Second, If someone requires you to have it, such as a bank, state gov't or the wholesaler. Your tax id # is also your social security number and this is usually all you need if you don't have any employees.
Tax certificate is from your state government sale tax division. The wholesaler wants this because he is required to have it on file in order to not charge you sales tax on the merchandise that he sells you. Therefore making you liable for collecting sales tax on the merchandise when you sell it in your state.
What state are you from?
Is an employer ID number the same as a tax ID number? Check out this link http://www.irs.gov/faqs/page/0,,id%3D15920,00.html
[ edited by imhollywood on Oct 7, 2002 04:28 PM ]
posted on October 8, 2002 07:31:05 PM
"requires a tax id # along with a copy of the tax certificate. at the risk of sounding very ignorant what exactly is that "
Before you can get a good answer you must ask a good question.
There is such a thing as a sales tax ID #.
There is also such a thing as a federal tax # (EIN or SS).
There is a sales tax certificate issued by many states (those with a sales tax).
If you apply for an EIN you will get a piece of paper ( a "certificate" ) with the number on it.
Unfortunatley punksushi has not asked a good question -- the terms are vague and indefinite.
"Usually, it means they want ..." Yah, maybe. Maybe not. If the form uses these vague terms, punksushi should just ask the wholesaler WTF they want.
posted on October 8, 2002 10:44:34 PM
"I don't know as I would give them that information. I have several wholesalers I do business with and they don't ask for that information. "
Then you're not dealing with Wholesalers, you're dealing with a retail company that calls itself a wholesaler and/or sells in wholesale quantities.
Real wholesalers require you to have on file with them a reseller's certificate and/or your TAX ID#, so they can prove to the local authorities that they're selling to a business that will resell the product and therefore don't need to collect sales tax from you.
That's the reason they require that information, all of my distributors and wholesalers have that information from me, so they can sell me items without sales tax. None of the suppliers I use will sell to non-businesses/the general public and require that information from you before they will sell anything to you.
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Punk Sushi, if you're incorporated (Which is probably a good idea if you're not) and even if you're just a sole prop getting a Federal EIN# takes only a 5 minute phone call to the IRS, so you might as well go ahead and do it in addition to getting a reseller's certificate for your state (Assuming your state charges sales tax).
The way I see it, it puts a more professional image in front of the Wholesaler and if you ask me, it's best to not have your SS# being faxed all over the place. They can't do much with your EIN# but if Otto the unscrupulous Janitor sees a fax or document with your SS# on it and decides to do something with it.......
posted on October 8, 2002 10:58:33 PM
Why not pick up the phone and give them a call and ask them what type of tax certificate they want? If it's state, it's strictly a routine matter and you can give them your retail sellers number. If you don't have one, get one. Every state makes it easy for a person to get the necessary paperwork to remit taxes.
If, on the other hand, they want a federal i.d. #, quiz them as to why they need it. If you feel uncomfortable with any of their answers, deep 6 them and find a reputable company to deal with.
The light at the end of the tunnel will turn out to be an oncoming train.
