should i have a sales tax id number to sell on etsy

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Original Post

i have a website for wedding invitations and i have been open a year and have a tax id number and never made a sale. so i closed it. but i plan on opening a store on etsy for handmade blankies and such and i was wandering should i start out with a tax id number or wait till i start making sales. the reason i ask is cause my wedding invitations have been on etsy for a year and no sales. so i keep filling out paper work each month for nothing.

Posted at 1:32pm Jan 15, 2010 EST

Responses

You should just be able to register the business with your state- you can get a tax ID number, but your SSN will work just fine. It's really up to you how you want to do it.

Posted at 1:34pm Jan 15, 2010 EST

FeralGlass says

You should get a businsess license from yoru city/county in order to have any sort of business. Sales tax is a state issue, so you need to get an account with your state tax people for collecting/reporting/paying the sales tax on your sales within your state.

Depending on how you are organized legally, you may be well advised to get a federal EIN # from the IRS. This helps me to keep my personal and business accounts separate

Posted at 1:38pm Jan 15, 2010 EST

You do have to register with the IRS- I am pretty sure that is the way it is in most states since they want their portion of state taxes collected on merchandise sold within their state...

Posted at 1:45pm Jan 15, 2010 EST

UneekDollDesigns
UneekDollDesigns says:
You do have to register with the IRS- I am pretty sure that is the way it is in most states since they want their portion of state taxes collected on merchandise sold within their state.


you only have to register with the IRS , if you are INC, LLC, have employees, or your state requires it. the IRS has nothing to do with sales taxes

Posted at 1:48pm Jan 15, 2010 EST

As a sole proprietor you can use your social security number as your tax id. So you dont' need to have a seperate id unless you were going to change the ownership status or have employees.

Posted at 1:49pm Jan 15, 2010 EST

the state dept. of revenue or tax is where you register for collecting sales tax and they issue you a state tax ID, very few states still use your SSN

Posted at 1:49pm Jan 15, 2010 EST

PattyBilbro
PattyBilbro says:
As a sole proprietor you can use your social security number as your tax id. So you dont' need to have a seperate id unless you were going to change the ownership status or have employees.


thats for the IRS and income taxes, sales taxes are totally different

Posted at 1:50pm Jan 15, 2010 EST

the state requires you to register to collect sales taxes BEFORE you start selling to the public, same goes with a business license if your city/county requires it

Posted at 1:51pm Jan 15, 2010 EST

and even if you never make a sale, you still have to keep the ID and file the returns as long as you are still operating and offering goods to the public

Posted at 1:55pm Jan 15, 2010 EST