Wholesale Jewelry-Making Supplies for Professional Craftspeople
1 (800) 366-2156
Q: I am starting a home business where I will be designing jewelry and selling it. Do I need a tax number to order through your company? I don't have one now. Could you please give me any info that would be helpful.
—Jewelry Crafter
A: Dear Jewelry Crafter,
Although you do not need a tax number to order from us, a resale tax ID is a good investment in your fledgling business. It usually costs about $50.
A resale ID legitimizes your business in the eyes of potential suppliers and fellow craftspeople. This 1) enables you to purchase from a larger number of wholesale suppliers, 2) helps you get into wholesale bead and craft supply trade shows, and 3) makes some craftspeople more friendly about sharing information
Some craft shows won't let you exhibit without one.
If you are selling your jewelry in a state that charges sales tax you are required to collect sales tax when you sell your product. Some states exempt a small amount of sales as long as you PAY sales tax when you buy the components.
If you are using the things you buy wholesale but not reselling them, most states require you to pay USE tax to your home state. Many individuals ignore this while most businesses ultimately are audited and are required to pay USE tax on out of state purchases.
Drawbacks to getting a resale ID:
- It costs money, and you have to fill out paperwork.
- It lets your state Revenue Department and Uncle Sam know you plan on selling things. So, you'll need to report the earnings so you can pay income tax on it, and/or collect and pay sales tax.