Tax?

[cjk]

I am new to the home business (or having any kind of business) thing and have a question. What are the advantages/disadvantages of having a a tax id number? Do I have to start charging tax on the items I sell? I am selling them through a nonprofit
origination. What are you guys thoughts on this? Thanks! Cheryl K.

[KNC Designs]

Best thing to do is get a C.P.A. because this won't be your last tax question.

Curtis

[cjk]

Thanks, unable to afford one just yet so thought I would throw the question out there. Cheryl

[KNC Designs]

You having a tax i.d. number will open some doors as far as suppliers go.There are some forms to fill out for selling to non profits but I don't remember what the numbers are.Selling to anyone that does not reale the item or a "end user" will be taxed at your local rate.Then on a quartly basis you will have to pay your sales taxes that you have collected to the state.

curtis

[Lisa Were Chillin]

Anything that is not sold across state borders is taxable within that state, unless it is being sold to a reseller. If you are selling to a resaler make sure you have their certificate on file in case you get audited. A tax resale certificate allows you to purchase items without paying taxes than reselling where you may or may not collect tax depending on where it is being sold. Whether you collect taxes or not, you have to file a report to the dept of revenue. This effects your corporate taxes at year end.

If you can not afford a CPA, contact your local tax agency. They either will have someone to walk you throught it, or here in AZ they provide regular free classes.