What's your feelings on getting a tax number?
Posted By: Patti
Date: 2004/5/14 10:14 a.m.
What your feelings on getting a tax number
if your only doing one craft show? Is it necessary? I've also heard you can get one on the internet. Has anyone done it that way?????? Patti
Re: What your feelings on getting a tax number
I think getting a tax # is something you should do if you are going to sell crafts.
Besides the fact that it adds "professionalism" to you as a business owner.
1. As a business you can then deduct expenses when doing taxes. And expenses add up - mileage to and from store to purchase materials, all material costs including patterns, magazine subscriptions, if your house is your place of business even some household expenses. Check with a tax person to see what you can deduct (their fees are also deductible).
2. When you purchase materials that you then turn around and sell, you can usually show your tax # and not pay sales tax for the items. Example - the wood I cut, the paint I use, lace & ribbon I use as ornament hangers - no sales tax (6% here in Michigan).
3. Ability to purchase wholesale from certain companies.
4. some shows require you to put your sales # on applications - some require the certificate to be shown during the sale.
You may only be doing one show this year - but you will do more in the future - so start reaping the benefits now!!
I don't know anything about getting one off the internet. I would go to my State's web page and see if there is anything on there about it. Theresa E
Re: thanks Theresa and Patti she is right
2003/8/5 10:14 p.m.
The show I am doing this weekend requires a Tax ID # or you have to pay them the tax the day of the sale and they will send it in instead...but the tax still has to be paid...and this show it is 9.25% and that is a bunch to come out of my till.
In Oklahoma you just contact the Tax Commission (ours in here in town) and fill out paperwork...can't remember how much it was and it probably differs from state to state. You can do some of it over the internet if you state tax commission has a website to access and fill out the pertinent info. They are getting really picky here about issuing them. You do have to fill out a tax form each month and mail it back to them, even if you don't sell anything...you zero it out and send it in anyway. If after a year you haven't made any sales, they won't renew your certificate. Too many people getting them just to buy stuff for themselves w/o paying taxes on it.
It does make you more professional and for instance, in Amy's case, she could buy her glassware wholesale and her profit margin would be much more.
If you ever do juried shows they will require a tax ID number I am pretty sure...I would have to do some research on that one but I think it would be the case in larger shows. If you do shows in different states, you have to have a number in each state that you participate in the shows.
Hope this helps some...they don't cost much and save you the cost on buying supplies.