Re: Federal Tax #
Posted by June on September 30, 2001 at 03:24:41:
In Reply to: Federal Tax # posted by Lee on August 14, 2001 at 13:10:41:
Lee, I think John may be confusing a Federal Tax ID # with your Resale Certificate Number. Both are generally required. Both are available at no cost to you.
As a Sole Proprietor, your Federal Tax ID # can be either your Social Security Number, or a TIN provided by IRS. This is the number used as your "identifier" when filing your Schedule C Federal Income Taxes.
The Resale Certificate, also referred to by many crafters as a Tax ID, is issued by the state where you retail your work. This certificate identifies you as a retailer and authorizes you to collect and pay sales tax in the state(s) where you retail your work. Your "home state" is generally your primary resale certificate number, used when you purchase wholesale. However, you are required to apply for a Resale Certificate (collect and pay Sales Tax) with any state in which you retail your work.
Depending on the location of your retail sales, you may also be required to apply for a Resale Certificate in areas where an additional City and/or County Sales Tax is applied to the existing State Sales Tax.