Tax ID, Business ID, Reseller ID.. etc

[Guest dudestore]

One of my online business I wanted to start is required to have tax id, business id, and also reseller id (wholesaler). Any other ids i must get?? It sound really crazy.

Why would I need those ids if i'm running a online store, not a REAL retail store out there on the earth??? I seriously only want to do online store being a wholesaler/reseller.. meaning I don't own or make any products.

Having those ids make it like I'm running a real retail store. I'm just a regular guy who living in apartment and 1st year in college.

[Guest]

You said it in your opening setence, TAX.

You question actually makes me wonder how many ppl actually have a registered business.

[Guest]

If you are planning on making money by selling goods, then you are a *real* retailer. Just because you do not have any stock does not make you any less liable for the operation of your store.

[Guest]

I do, and it ain't fun.

This may seem like overkill but a call to a registered CPA in your area could save alot of headache in the future. For about the price of a meal out you should be able to sit down and get the definitive answer to your questions. Having been in business for several years, I have learned to NEVER mess this up. The federal government does not laugh.

[Guest twisted]

Depends on your local laws...some require it...some don't.

In my state, and many others, your sales id and your reseller id are the same thing.

If you want to BUY wholesale for re-sale, most true wholesaers or suppliers require you to have a tax(reseller) id to prove you are a legit business and not buying for yourself. If a wholesaler doesn;t ask you for a reseller id, odds on THEY aren't a true wholesaler, but a reseller like yourself.

The CPA is a good choice, another is your local chamber of commerce.

SOme states, I hear, haven't figured out HOW to tax internet sales. :P

[Guest dudestore]

what is CPA?

[Guest twisted]

CPA = Chartered Public Accountant.

Accountant = fancy title for a bookkeeper.

:P

[Guest dudestore]

CPA = Chartered Public Accountant.

Accountant = fancy title for a bookkeeper.

Oh.

Whoa... now this seem too much work to get a business license, permit or whatever. Although there a statement on the bottom of the page (FastPath Checklist..) says

Important: This checklist is merely instructional. The information presented does not constitute legal advice. Be advised to check with an attorney before completing any forms that regard to starting your business.

.

FastPath Checklist For Starting A business in New Jersey: http://www.state.nj.us/njbiz/s_check.shtml

State Site: http://www.state.nj.us/Business.shtml

[Guest]

From booker:

If you are planning on making money by selling goods, then you are a *real* retailer.

So true.

Quick story...5 years ago I ran a store online that sold VERY niche custom items. I had one customer who was disgruntled over the return policy.

Next thing I know, there is a man at my door who flipped over a badge.

He was an investigator for my county's district attorney's office. He came to inspect my home to verify that I was a legitimate business and not some fraudulent internet scam.

I still have his business card that I keep in my phone files.

It has his name on it and subtitle.

Investigator Mark J. ******

High Technology Crime Unit

To add to the story, lucky for me I was 100% legit. I had my reseller license hanging above my computer (you're supposed to post it where you do business but I posted it more as a trophy of it being my first business lol) as well as the city permit that was required to do business in my city, and a copy of the ad that is supposed to run when you file your DBA.

I also had a load of outgoing shipments ready for the UPS pickup service that came to my house each morning. I also had a tiny sticker on the front of my window so that the mailman and any other shipment people would know that I was the place that was supposed to be delivered to.

I offered to show him bank records, invoices...anything and everything. But he didn't need to because all of the things necessary for him to see and determine me as a legitimate business was there in front of him when he walked in the door.

My point is, that if you are going to do business, be 100% legit by the laws that your state/county/country requires. Any customer at any time can file a complaint that will get an investigator knocking on your door whether the claim is valid or false.

[Guest dudestore]

To add to the story, lucky for me I was 100% legit. I had my reseller license hanging above my computer (you're supposed to post it where you do business but I posted it more as a trophy of it being my first business lol) as well as the city permit that was required to do business in my city, and a copy of the ad that is supposed to run when you file your DBA.

LOL. By the way, what is DBA? (lots to do for me to learn about biz).

I also had a load of outgoing shipments ready for the UPS pickup service that came to my house each morning. I also had a tiny sticker on the front of my window so that the mailman and any other shipment people would know that I was the place that was supposed to be delivered to.

Really sucks for me because of living in apartment.. UPS doesn't allow any shipping to/from P.O. Boxes. Must use USPS (ofc.. USPS is the only shipping company in this town). Also this makes me worry about shipments to here because I'm always at school on Monday (11am-2pm) and Wednesday (full day, 8am-6pm but off between 2-4pm).

My point is, that if you are going to do business, be 100% legit by the laws that your state/county/country requires. Any customer at any time can file a complaint that will get an investigator knocking on your door whether the claim is valid or false.

Sure, I do want to do business 100% legit by laws.

[Guest]

DBA = Doing Business As

Basically, when you register your business, you enter a name for you business/company. This is referred to as your DBA.

[Guest dudestore]

I forgot one thing about my life (always will be forever).. I'm not what ya'all think I am. Yes, I am a student in college and living in apartment.

- Am I able to use phone for ordering products or for support if customers have problems or whatever..?? NO.

- Am I able to speak in person, on the phone, or over the internet? NO.

- Am I able to run business like other people? NO.

- Am I able to think using my brain to figure out how to manage business? NO.

To answer to all the "NO."s.. (not that because of money problem or whatever like that).

- I'm the person who has learning disability. (not always but I tend to often forget things)

- I'm the person who has hearing disability. (Yes.. mute - no hearing)

- I'm the person who has speaking disability. (Also yes.. why? no hearing, ofc)

- I do know English language but I'd write like middle school kids. My main language is ASL/ESL (American Sign Language / English Sign Language). It is like me speaking and writing as ASL/ESL. I often misunderstood people's speaking/writing about things. Which is the bad thing for me because I sometime lose customers (not always) when they figure out that I'm not like them.

Those are what hard for me because people expect business owners to understand english and speak/write perfect english. Starting a business is harder than I thought because of what I am. Thats why, I wish running a business is FREE like without getting any license or permit.

I've tried atleast two online business few yrs ago but failed because I lacked my writing skills and unable to speak.

[Guest dudestore]

DBA = Doing Business As

Basically, when you register your business, you enter a name for you business/company. This is referred to as your DBA.

Oh got it.

[Guest]

Hi dudestore,

When I was doing my sales for the retail business I mentioned, I was living in an apartment and opened a Business Shipping Account with UPS. You will most likely be able to do this with them when you are able to provide them with proof of legitimacy as a business either by, showing them a copy of the DBA you file, or, your business permit with the city or state.

You will probably want to check their website for the type of services they provide but I do know that UPS will handle shipping pick ups for people who do business out of their home...and the home happens to be an apartment.

Am I able to speak in person, on the phone, or over the internet? NO.

This might be helpful for you, sorry to make this post so long...

There are companies that can handle customer service inquiry stuff for you. A lot of companies out there when you call them and you get customer service it's actually an off-site paid company handling calls for them and we don't even know it.

One of these service companies will set up an 800-number for you, and any calls that come in regarding your product 24 hours a day, 7 days a week... they have operators set up to answer all of the questions regarding your products, their order status and invoice, pretty much anything and everything. It is an expense but it isn't too expensive.

When I had an 800 number out of my apartment I was getting calls from all around the world 24 hours a day and my phone bill for that business number alone each month climbed over $700.00

If I could go back again I'd use the customer service answering people...I don't know what the name of the service or one of the companies is called. I haven't had the need for any of that type of service for years...but if it helps, they are out there! :whistle:

[Guest dudestore]

Would it still required to have those IDs even if I sell products which I buy from retail stores (kmart, GameStop, ShopRite, etc)? Whenever customers don't buy, I don't buy products from stores. If I made some sale, then I buy products from stores then ship them to the customers.

[Guest]

Don't quote me on this but for a business like you're describing that would be similar to eBay auctioning, etc. where merchandise purchased at resale is resold;

I think you only need the state license if you are going to be purchasing items wholesale and then reselling them.

If you are doing business via purchasing closeouts and clearance and paying the tax on them without working with an actual wholesale vendor, and you claim your sales income on your taxes OR you anticipate that you will sell a specific $ amount in 1 year, you only need to get a permit from the city you live in. I believe it's from the City Chamber of Commerce.

[Guest dudestore]

you only need to get a permit from the city you live in. I believe it's from the City Chamber of Commerce.

Hmm.. so I need to go to a place where I'm living (apartment for few yrs) now? Or in where my actual home (parents)?

[Guest dudestore]

What if I don't charge tax? Would that be considered illegal?

[Guest]

you only need to get a permit from the city you live in. I believe it's from the City Chamber of Commerce.

Hmm.. so I need to go to a place where I'm living (apartment for few yrs) now? Or in where my actual home (parents)?

I apologize. What I should have said is that you only need to get a permit from the city where you are conducting business from.

What if I don't charge tax? Would that be considered illegal?

I don't know what state you live in to make that determination, but in some states, tax payments on the purchases made are required if the recipient of the merchandise resides in the same state from which the business is located. If you don't require them to pay the tax, then you are responsible for paying the tax for them.

For example:

My business in located in California and all California residents are required to pay sales tax on their purchase. If someone from Alabama purchases they are not required to pay tax.

For the California residents, I don't have to include tax on the purchases they make but in turn, I will have to pay it for them because it is my state's law. Someone has to pay the tax on California purchases whether it's them or me. That is why on eBay and most retail websites it states which residents are required to pay it.

[Guest twisted]

If you buy at wholesale, and have a reseller ID, you are not charged tax, and you are required to charge the tax when you resell that product, unless it is to another licenced reseller who also has a reseller ID. It is only the end user who pays the sales tax. i.e. the retail buyer.

If you do not have a reseller ID then you CAN'T charge sales tax. If you buy a product and pay the sales tax on it...then YOU are the end user,even if you resell that product later, or even if you bought that product with the intention of reselling it.

You are selling that product as an individual. "Individuals", via a website, or ebay, or offline, do not charge sales tax on items they sell.

Like, if you were to buy a $10 figurine from WallyWorld, and sell it 4 weeks later on ebay, even if you sold it for $30, you would not be considered a commercial seller. You would be an individual selling a product you don't want.

Disclaimer: This information is not to be considered binding legal advice. I am not a lawyer.

Although I have been through this whole process. :unsure:

[Guest OSKicks]

what are you trying to do, how much revenue is your site bringing sounds like if you just starting you should kinda start out on the low and not start registering buisness's and paying taxes atlest give it 6 months

[Guest dudestore]

Thanks everyone for responding to all of my questions about IDs.. It had given me a lot to think about and what to do.

Again I thanks all of you for your helps.

P.S. Heh.. ya'all know what this mean, right??

I got one LAST question (I PROMISE!).

What if I formed a partnership who has IDs (tax.. business.. reseller.. whatever to run a biz site), would I be able to run without getting any IDs for myself?

[Guest]

I'm not quite sure why you are in avoidance to just getting a permit. It's free and in most cases will not be denied. (Unless of yourse you're in major trouble with the IRS or cannot provide a driver's license or social security number or something, but even still they rarely deny granting a seller permit to people who apply.)

In response to your previous question if you form a partnership or incorporate a business then all names of the partners must be listed on the paperwork.

Really the only way to get around it is to just simply not get one and deal with the consequences if you're caught or if a neighbor or customer reports you and you don't have your paperwork in order.

[Guest dudestore]

I'm not quite sure why you are in avoidance to just getting a permit. It's free and in most cases will not be denied. (Unless of yourse you're in major trouble with the IRS or cannot provide a driver's license or social security number or something, but even still they rarely deny granting a seller permit to people who apply.)

No. I'm not in any trouble with IRS or cannot provide driver & SS IDs. I don't want to DO ANYTHING with government cuz I feel it isn't any of their business to know what I'm doing for starting a business. It also just that I don't want to waste my time getting business & tax ids just to show that I'm legal person. I just rather start a business anytime I want and how I want. Even without paying tax which I want to earn money 100% directly to me. Paying tax which even the business is 100% mine (ownership) is not right.

Thats my opinion, thats all.

[Guest dudestore]

Hmm.. Hmm.. Hmm.. I already emailed a message, requesting information about reseller/wholesaler - permit,licensing,certification. Saw that there were no information about what I need... so I emailed to the state office of business or commerce.

Should get info. back to me soon.