[Jewelry making - Article 01307] - Re: [Orchid] Whether or not to get a tax id

[Norman Buck]

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Sue,

    If you are buying materials, making stuff and selling it then you
    are in business. 

    There is a couple different tax id's that you can have. 

    You already have one - your social security number. As a
    sole-proprietor you can use your SSN as the 'business' tax id. Or you
    can go to the IRS web site and apply for an EIN. The EIN will be
    another tax id number that is linked to you so you don't have to give
    out your SSN. 

    I suppect that if you are selling product you are required to
    register to collect (and pay to state) sales tax on all sales. This
    will be your other tax id. If you are going to get a EIN to use for
    the business, do so before registering with the state. Many states
    will use your federal tax id as the state sales tax id. 

    Check with your state tax agency. Selling product without
    colllecting sales tax or collecting sales when are not register to do
    so can get you in legal trouble with the state. If in doubt with any
    tax or financial stuff check with a local accountant first to make
    sure you won't get in trouble down the line. 

Norman
Howling Studios

 
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