Another question on tax/business ID's

[Jess]

Hello all. I've been making cellphone charms, and I've just started looking into selling them. First off, I do live in Washington. I've looked over the information provided on this website on tax ID's, but I'm still a little confused about business licences. Do I need to have one? What exactly is it's purpose?

Thanks in advance. I've been looking around the forums for awhile now, and I've already found some invaluable info. Keep up the good work!

[daverobertson]

Hi, Jess,

I would have answered earlier, but I was out in the woods.

What I understand from my old days in the sales department here at Rings & Things is:

* It's not a business license that you need to order from us.  

* But if you're here in Washington state, you can avoid paying sales tax on your R&T purchases if you can provide us with your state "resale number".  

The idea of a resale number here is that you're buying stuff from us, just to turn around & sell to a customer of your own.  

So instead of tax being paid twice on those items (by you & by your customer), a resale certificate lets you hold off and have your customer pay the tax.  

I hope this explanation makes sense!  

--Dave
at Rings & Things

PS: Thanks very much for your compliments about our site!

[Jess]

So, what I understand is, I don't need a business license if I'm only selling to/through another business. Is this correct?

[Onychoid]

You don't have to have a business license to order with us. But whether or not you need to register your business with the state of Washington depends on your sales earnings and how your goods are sold. This site has a quick list of information on who is required to register: http://dor.wa.gov/content/doingbusiness/registermybusiness/

From your note, it sounds like possibly you sell your goods through another party that has a business front? If so, they may very well be taking care of these details for you. I would check with them to see how taxes are being filed on your sales.

In so far as ordering from us, we do not require a resale certificate (or the Unified Business ID number that goes on said certificate). If you do not have have a complete resale certificate on file with us, we simply charge your orders destination based sales tax here in Washington.

A UBI number is relatively easy to obtain (contact the Department of Licensing), and as Dave said, a resale certificate is essentially a paper stating that the goods you buy from us are being used as components in finished products or as stock to be resold to your customers.

I hope this helps clarify.  '>

[Jess]

Thank you. That's exactly what I needed. I haven't actually started yet, I wanted to know all of the requirments first.  '>

[Onychoid]

Glad to help, and good luck in your endeavors! Let us know if you have more questions about anything.