Question about Tax ID (help pls)

Full Member
saphir
Posts: 14
Joined: 22 Apr 07
Karma: 
23 Apr 07 06:22:02 am
HI i was looking through the blog n i saw this. I live in singapore.. so i would like to ask do i still need the tax ID number? is my country's tax id number valid for overseas use? And I'm not even of tax paying age yet.. so i'm really quite lost with the issue here.. please someone help me out. thank you


'If you are serious about establishing a business on eBay, then you’ll need a federal Tax ID number. Find out why…

What is it? Your federal tax ID number is a nine-digit number used to identify you to the IRS. This is different from a Sales tax number, which is issued locally.

Who needs it? All businesses selling products or services that pay any kind of taxes and/or have employees must have a federal tax ID number (also known as an employer identification number or EIN).

That means all eBay sellers need to get one, except if you are the sole proprietor of the business. In this case you can use your social security number instead. You can apply for your Tax ID number online through the IRS website.

As an eBay seller, there are 5 reasons why a Tax ID is useful to you:

Tax Breaks: If you run your business from home, you will be eligible for a number of tax breaks. To take advantage of these you will need your tax ID when you file your returns.
Business account: If you want to open a business bank account, you will need your tax ID as well as the social security numbers of the signatories.
Employees: Many eBay businesses have employees, often just part-time students taking care of packaging and post. Before you can legally employ anyone, you need a tax ID.
Open Wholesale accounts: Wholesalers in the US want to see that you are a legitimate retailer before doing business with you. Some states also legally require wholesalers to get a Sales tax number from you as well.
Tradeshows: Tradeshows are a great way of meeting wholesalers, but you will need your Tax ID to register. '

Full Member
mana2006
Posts: 379
Joined: 06 Aug 06
Karma: 
23 Apr 07 11:25:05 pm
Most of the tax id numbers are for US people. All I can say is look into your own countries rules and regulations for selling locally. Than see what they require to sell overseas. I am not familiar with those rules or regulations and can't point u in the exact direction. Loook up your local rules and regulations. Maybe contact someone else that has a business there. Maybe even a local shop and ask the manager what you might need and how to get started. They might be able to help point out the right sites or offices.

Full Member
grace-salehoo
Posts: 333
Joined: 15 Jun 06
Karma: 
23 Apr 07 11:53:17 pm
Hi - the blog post is aimed at sellers in the US. Because you live in Singapore US wholesalers are very unlikely to ask you for a Tax ID number, so you don't need to worry :). When you start making a bit of money (ie. $2000+) I would advise you to give your IRS department a call. It doesn't hurt to keep all receipts and records of purchases of wholesale goods and sales anyway, just in case you do need to pay tax at some point.

Hope that helps :D


Grace

Full Member
saphir
Posts: 14
Joined: 22 Apr 07
Karma: 
24 Apr 07 03:45:59 pm
its very helpful and has given some hope to this small business idea that i have thought of.
for a moment there i thought i was doomed paying for a site n seeing suppliers i cld not order from.. =)
thank you so much

Wait! Want Some FREE Supplier Details?

Discover four of the most profitable niches on eBay and get details for the best suppliers for these niches. Enter your details below and we will send them instantly.

Thanks! Please check your email inbox.

Your list of profitable markets and supplier details are on their way to your email inbox.
Be sure to add support@salehoo.com to your safelist to ensure we can deliver the free suppliers details to you.

If you haven't received an email from us in 5 minutes, please check your spam folder or email us at support@salehoo.com.