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Thread: business and resale cert

  1. #1
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    Default business and resale cert

    Hi
    i have a sole prop business registered that i have not operated in some years. It dealt with making and repairing leather products.

    I have a separate LLC that deals with riding lessons. (not required to have tax cert)

    I now want to get back into making leather goods and now need a resale cert

    question is... which is easier and makes more sense?

    use the llc? or the sole prop?

    if I use the sole prop I will have to file 2 schedule Cs at tax time

  2. #2
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    Being a sole proprietor is easier if that's your only business, however couldn't you make the leather products under the existing LLC? Do they need to be separate businesses?

    As far as two schedule Cs, is that really a big deal? You're going to be filing tax forms for both businesses anyway. It's a little more work come tax time, but not that much.
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  3. #3
    Mr. Tax Man
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    You may also need to amend your articles of organization as well depending on what the LLC's explicit purpose is according to the state. Some states don't like the blanketed "Any legal purpose" statement so you need to narrow it a bit more.
    Small Business CPA
    "A tax loophole is something that benefits the other guy. If it benefits you, it's tax reform."

  4. #4
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    I agree with, Evan. Good advice on the article of organization.
    Tran Nguyen
    Accountant
    Tran'sActions Accounting, LLC

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