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View Full Version : Purchasing wholesale.



magicman
04-30-2009, 09:26 PM
I know for purchasing wholesale you need a tax ID.

I was told that I can get what is called an EIN to use instead of a social security number to pay taxes. Could this be used to purchase wholesale?

I am not interested in selling anything. I would like to purchase items in large quantities to use as giveaways at magic shows and for workshops, as well as purchase supplies for my shows in bulk.

vangogh
04-30-2009, 09:42 PM
Same thing. You can read more about the EIN here ( http://www.irs.gov/businesses/small/article/0,,id=98350,00.html). The link is to the IRS.gov site.


An Employer Identification Number (EIN) is also known as a Federal Tax Identification Number, and is used to identify a business entity.

If you do buy wholesale you might need to collect taxes on the items. Part of the idea of wholesale is the taxes aren't collected during the wholesale transaction. I'm not sure how that works though so hopefully someone with more knowledge will post after me.

huggytree
05-01-2009, 07:28 AM
you dont want everyone knowning your S.S. #

yes get a fed. tax id....everyone in business needs one i would think.

i buy my products from supply houses, but i pay taxes on them. other than service/repair work i dont charge the customers for the tax seperately (obviously its built into my price)...

on service/repair i have to charge tax on materials/labor, but i must keep track of my original taxes paid and deduct it seperately i my taxes...stupid eh?...cant wait for Gov. to control more of our lives....i double markup my parts to make it easy to figure out.