Discussion in 'Lifestyle' started by Girth, Sep 5, 2008.
resale account ftmfw
I put the wrong tax code on it accidentally, emailed them seeing what I need to do.
tax id card? whatcha talking about willis?
Tax ID number... for paying taxes.
and not paying sales tax on items you will resell, like paper, ink, products, or products that go into the making of something you will resell,
it will also et you access to more wholesalers who only deal with businesses
those are the good perks...
as are write offs
but my question is that since I'm "starting" my business officially now w/ my Tax ID being registered now and having my DBA since January, are all my stuff I've bought since march a write-off?
pro tip #1
make friends with an accountant. stuff differs by state and theres is some gray areas. whether you hire one or do quid pro quo, there is no better tool to have than a numbers cruncher. It'll save you what they charge you in the end and with no headaches or threats from uncle sam
I never got any sort of physical card
Does it cost money for a Tax ID card? I have a DBA and would like to do it for reselling computers.
gotta pay a few bucks for your state and city license. i think mine was only $15 each
Damn, if that's the case, then it would make sense for me to get it because I'm buying computers and selling them all the time... however then I will have to record everything and pay taxes on all the items I sell. I currently have my DBA for computer repairs and development, and I've just been buying things and reselling them on craigslist, but with the Tax ID, I would have to pay taxes on everything I resell. Which should I do?
my DBA was (I think) $10, and the Tax ID was free here in Texas.
Haha technically you should have a tax id and be reporting the income, paying tax on it, and charging sales tax if its within your state. If your doing it as a business and selling the stuff/services as a business then I'd say you better just own up and get the tax id before you get caught with your pants down. It will only take one pissed customer to take you to small claims before you end up in some trouble.
Here in Ohio if your making under $500 per year then its not really an issue though and just considered selling junk.
write offs and other shit won't make the taxes soo bad, but dealing with sales tax and the paperwork can be a bitch if you aren't organized.
i was gonna say my tax id just came on a piece of paper in the mail not on an actual card.
For my web development and repairs, I do a 1099 form and pay taxes. But some times I'll buy some computers, fix them up, then resell them. Technically I should be paying tax, but people sell some shit on ebay/craigslist all the time and don't pay taxes for them, so I'm not too worried about it
make sure you get a GOOD accountant. my dad owned his own business for years and has used the same accountant because he's good. he was a nfl team's head accountant before quitting to start his own firm, so he's well versed in the tax law loopholes and the best way to lessen your tax burden. the first year my parents used him, he cut my dad's tax bill in half.
Here in Ohio, you can still be doing business without a tax ID, you will just be doing business as a sole proprietor. Problem with doing business as a sole proprietor is it is very difficult to separate the business from the personal and when you get sued or the government comes after you (say, with tax issues), they come after everything you own, including the house and car. With the tax id, you should be under a business and the liability is on the business, not your personal stuff. Its a good way to protect your personal stuff plus the other side benefits the tax id has (such as getting a merchant account for credit card processing, etc).
I thought that was more of a LLC rather than a DBA
unless you are using a fictitous name, it is free here in PA. and can be done completely online. just make sure you go with a vauge name that is like Girth Enterprises or some shit like that
Nope, LLC has some interesting benefits. In a nutshell, the LLC offers the liability benefits of the corporation without all the paperwork required. So an LLC is very much like a sole proprietor, but without all the paperwork and filing and with some liability benefits. From my understanding, if you set up a corporation (be it S or C flavored) and you DO NOT do the proper paperwork, you can be found to be operating as a sole proprietor and take on the same liability (this has happened in court).
The catch with LLC, and I don't know if it has changed any recently, is the LLC concept hasn't been fully ironed out in the courts in each state. So you SHOULD be protected, but there's a chance they could prove you were acting as a sole proprietor instead of an LLC. To wiggle around this, ALL material with your business name has to have LLC on it to ensure your customer was fully aware they were doing business with an LLC (example: "My Business, LLC").
Note: I'm not a lawyer so your mileage may vary.