Businesses may ask you for your Social Security number to do a credit check, like when you apply for a car loan, or sometimes, they simply want your Social Security number for general record keeping. In this case, you have the option of presenting a federal Tax ID instead. :)4 Organics requires that you have a valid federal tax ID or social security number
Most people starting a business begin a sole proprietor because itâ€™s the cheapest and easiest way to structure a new business. If you choose this option, you should register a trading name or DBA because it gives you some liability protection and looks more professional. This can be done very easily at your local county clerkâ€™s office and usually costs less than $30.
Alternatively, you can consider incorporating your business. This is a more expensive and complex option, but it also gives your reseller application an instant credibility boost as far as suppliers are concerned. To incorporate, youâ€™ll be looking at paying anywhere from $500 to $900 depending on where you live, and ideally you should consult a lawyer.
Link hidden: Login to viewAny person (or entity) that files taxes needs an identification number of some kind. It's how the IRS tracks who's paying what to where and when. For people who are employed by someone else, their Social Security number is used (this can also apply to people who, in addition to being employed by another company or person, also run a small business from home).
If you are a US citizen purchasing wholesale goods from a wholesaler within the US, then you will probably need a resale certificate or license from the state in which your business is located.
A resale certificate or license enables you to purchase goods wholesale without paying sales tax. It also allows you to collect sales tax from your customers, the end consumer.
Without a resale certificate you will have to pay sales tax on the goods you buy wholesale and then also charge sales tax. In this case you can add the sales tax you paid as a deduction on your return, but it is much less complicated to just present your reseller license when you buy.
Most wholesalers will ask to see a sales tax ID or reseller's license before they will sell you the goods. This is because they are legally obliged to check whether you are able to collect sales tax from the end user.