Anonymous
Anonymous asked in Business & FinanceTaxesUnited States · 1 decade ago

How do I get a federal tax id number to buy wholesale?

I am wondering how I go about getting a federal tax id number in order to buy wholesale. I am a crafter and although most of the items I make, I give away, it would be nice to have a tax id number in order to buy supplies wholesale. I would only sell the occasional item so I don't know if I need a resale license or not. Also, if I have a federal tax id number, does this impact the way my taxes are filed for my "regular" job? Is there a downside to having an id number if I am not going to turn a profit?

Update:

Just to clarify, I am not looking to get out of paying sales tax, I think I will sell so few items that it won't cost much. What I am wanting to know is what kind of id number do I need to buy wholesale (i.e. not at a mark-up) and how do I get one.

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  • Bob F
    Lv 6
    1 decade ago
    Favorite Answer

    To get an EIN for your business (and don't listen to the other guy - you can get one for a sole proprietorship which is what your crafting "job" is - they aren't just for corporations). You can apply online or download and either fax or mail a Form SS-4.

    If you sell anything you make for profit, you are required to report that profit on your taxes every year. Typically hobbies like your don't make a lot of profit but any profit is required to be reported.

    It would not screw up how you do your taxes every year but it would add one form to your return. You fill out Schedule C and carry the profit that you calculate on that form over to your regular 1040 form and add it to your taxable income. Not a big deal. If you happen to make over $400 profit, you have to also fill out Schedule SE and attach it to your 1040 also. Also not a big deal. While you are at irs.gov filling out your EIN application online or downloading SS-4, you might want to download Schedules C and SE and see what you think of them. Schedule C might seem intimidating at first, but realize that on yours, you will only have entries on a few of the lines so it isn't a big deal.

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  • 3 years ago

    Wholesale Tax Id

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  • 3 years ago

    Getting A Federal Tax Id

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  • Anonymous
    3 years ago

    1

    Source(s): Wholesale Directory http://enle.info/BestWholesaleDirectories
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  • 5 years ago

    This Site Might Help You.

    RE:

    How do I get a federal tax id number to buy wholesale?

    I am wondering how I go about getting a federal tax id number in order to buy wholesale. I am a crafter and although most of the items I make, I give away, it would be nice to have a tax id number in order to buy supplies wholesale. I would only sell the occasional item so I don't know if I...

    Source(s): federal tax id number buy wholesale: https://biturl.im/Y9rtu
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  • 4 years ago

    It has nothing to do with taxes, unless its for a Sales & Use tax number (meaning you are a reseller and the wholesale company will not charge you sales tax). They are referring to an EIN, or an employer identification number. This is essentially a SSN for a business. Some wholesale companies will accept a SSN, some may not. Many do not sell to a company who does not have a bank reference or other professional references as very few accept your typical forms of payment, such as credit cards. They usually sell on credit. If they have your SSN or EIN, and you don't pay, they can report this to the right agencies. Regardless, you probably don't have the references to do business with them. However, you can always ask them directly.

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  • ?
    Lv 4
    4 years ago

    Get SaleHoo Wholesale Supplier Directory!

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  • Anonymous
    1 decade ago

    A federal employer identification number (the tax ID number used for businesses and business taxes) gives you no special rights. They are issued to sole proprietors, partnerships, corporations and similar entities. State laws determine what you can buy without paying sales tax.

    In my state, California, you would have to pay sales tax on all the materials you buy. The occasional item you sell would be considered a casual sale not subject to collection of sales tax from the buyer so you could figure in all your costs including sales tax you paid.

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  • 3 years ago

    2

    Source(s): Find Cheap Inventories http://WholesaleSuppliers.netint.info/?0lc5
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  • Anonymous
    1 decade ago

    The federal tax id is issued to corporations. You would need to form one first.

    All that's needed to buy wholesale is a business license for resale in the city, county or state where you conduct your business. The license issuer will want to make sure retail taxes are collected and paid, and only your net profits would affect your personal taxes. Keep in mind that the IRS has much bigger fish to fry, and they really don't know anything unless you tell them.

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