Tax ID's for selling on the web?

[showoff]

You get your resellers permit/sales tax license from the state you are selling from (where YOU are).  Most often this agency is isted in the Government section of the White Pages.  For example, in California, the name of the agency is State Board of Equalization.

In most cases (note this disclaimer, it depends on the state), you will collect sales tax from sales in your state but not outside your state.

Hope this helps.

[skydivenchick]

I'm in NC. Do you have to get a city license also for the city you live in?

[skydivenchick]

Thank you so much for the help!  I will be checking into it.  

BTW, I'm SO jealous if you really are in China looking for beads right now!! '>

[Polly]

I'd love to hear what people in other states have had to do.
It would be great if we could have a brief synopsis of "resale ID steps" for all 50 states, plus a few other locales...

Whaddaya say?'>

--Polly

[skydivenchick]

How does one go about getting a tax ID for items being sold on the web?  I do all my business from online, nationwide and sometimes internationally.

Thanks!

Showoff is correct. Resale Tax ID information is largely to do with what state you live in. We have information on our site, you can find it here, but it is for Washington state only.  It might help you figure it out for your state.

If you tell us what state you live in we might be able to point you in the right direction. Although a good source for the information may be your local Chamber of Commerce.

[Russ Nobbs]

You can ask that question of your city hall. As Todd says the local C of C may be more impartial.  (They want to encourage business - sometims the "officials" want to control it.
You might NOT need a local permit if you don't sell in public, at shows or from a store front, but you will need a state tax / resale license.  Every area is different.

(Msg sent from China while searching for beads...)

[joysan]

Just thought I'd say that in Kentucky you contact the Commonwealth of Kentucky Revenue Cabinet in Frankfort.  There was a short form to fill out and a บ fee.  It took a couple weeks to get it in the mail.

You can have the resale permit in your name or the name of your business.

Just thought that might help someone.

How about Oregon?  Since we do not have sales tax do we still need to get a tax ID to open an online business?  Thank you for your time.

[Polly]

Hi OregonMom,

Oregon does have some simpler rules for small businesses, especially sole proprietorships (the type of business most crafters have).

If you earn under a certain amount per year from your business (Sorry, I'm not sure what that amount is ... I'm remembering $2,000?), your Social Security number is the only tax ID you need, to sell in the state of Oregon.

Here is some information from the state of Oregon, about "Starting a Business":
http://www.filinginoregon.com/brc/Starting_a_Business.htm

And some excerpts from that Oregon page:
A sole proprietorship is the simplest form of business where one individual conducts the business. The business owner is personally liable for all the obligations of the business.
A sole proprietor does not have to be registered with Business Registry unless the business uses an assumed business name. If the name of the business does not include the full legal name of the business owner, the business name must be registered as an assumed business name with Business Registry. This allows the public to identify who is transacting business under that business name. See assumed business name registration.

There are some free CD ROMs you can get from the IRS; I get the impression they apply specifically to Oregon.  They are 'A Virtual Small Business Workshop" (Publication 3700) and "The Small Business Resource Guide" (Publication 3207):
http://www.filinginoregon.com/brc/income_tax_information.htm

I don't know how much would apply to you; they have to cover a lot of categories (7 types of possible start up businesses inclucing various kind of corporations).

And one more thing about income tax:

Income Tax for Sole Proprietors
Sole proprietors must file tax Form 1040 with Schedule C or Schedule C-EZ to meet their federal income tax obligations. A sole proprietor is probably liable for Self-employment Social Security tax which is filed on Schedule SE. To meet state obligations, a sole proprietor files state tax Form 40 with an attached copy of the federal Form 1040. A sole proprietor may be required to make estimated tax payments.

So, that all matches with what I was remembering about Oregon.
When you first start your business, there is very little paperwork to deal with.  The only thing they want you to register is your business name, and that is probably only in time for your first official craft show.... or perhaps as soon as you make your first interstate on-line transaction.

Then, feel free to buy & sell, until you get close to the magic $$$$ amount; then they want you to be more formal.  I'm sorry I don't know what the exact dollar amount is ... but if I posted it, it would probably change at the end of the year anyhow!  I don't think you have to worry about meeting it in the first 3 months of business.

--Polly

[atalanta]

Over on the Bead & Button site there is a whole discussion on this which may give you some additional information

http://www.beadandbutton.com/bnb....ID=3120

[LantanaD]

Here is a list of all of the states business start up websites.  Hope it helps!

http://lantanadesignwear.com/state_business_info.htm

Lisa
Lantana Designwear