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  1. #1
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    I'm thinking about trying my luck with ebay.

    Someone told me that if I wanted to get serious about being a seller (like buying wholesale) I'd need a tax id.

    So far I've been using my SS# in my income tax return. I thould id be allright to keep using it as a tax id, but I was told that a serious wholesaller would ask for a different tax id.

    My question is, come incom tax time, would it be a problem to use both my SS# (Which I've been using for years) and a different tax Id?

  2. #2
    Affiliate Miester my2cents's Avatar
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    wrong tax id... your need a resellers permit.. contact your local state tax dept. ask about getting a resellers permit so you can collect sales tax.


    however if you want to operate below the radar.. there are many "wholesale suppliers" on the net who do not require a reselers permit.

    no

    your SS is for federal/state income taxes paid quarterly, a reseller permit is for sales tax, reported and paid monthly.

    you really should form a company and get a tax id number for your business.

    you will need to keep very accurate records inorder to avoid future problems... with the IRS...
    Joe
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    that's my2cents, 'cuz I'm a legend in my own mind....

  3. #3
    I like traffic lights
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    You need to find yourself a local accountant who understands Internet commerce.

  4. #4
    Affiliate Miester my2cents's Avatar
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    <BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>Originally posted by Drewbert:
    You need to find yourself a local accountant who understands Internet commerce. <HR></BLOCKQUOTE>

    good luck!
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    that's my2cents, 'cuz I'm a legend in my own mind....

  5. #5
    ABW Ambassador
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    netsu,

    The answer to your question is yes. You want to get a Tax ID #. Easy to get. You can do it by phone and the number is active immediately. There will be an IRS office in your state that gives them out. Not all the IRS offices have access to them so look it up on Google.

    The reason you don't want to use your SSAN is that it sends up a red flag to whoever you're dealing with. If you're buying something, they may require you pay tax on what you're buying. If you're going to buy and resell stuff, bet the Federal Tax ID and then get a resellers license from your state. That way you won't be paying tax on what you buy.

    It's not a problem on your income tax. The Fed and State governments will match your SSAN to your tax id #. Just include a note with your tax return so you don't get audited.

    Bob

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