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  1. #1
    kmow is offline Junior Member
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    resellers certificate?

    Hello! I am in the process of starting up a small online business in which I sell messenger bags, purses, etc. I have registered my business name as a DBA, and I am a Sole Proprieter. I use my SS# as my Tax ID, (in liu of an EIN) Now, I *thought* that if you participate in an e-commerce in which you purchase materials with which you create your goods that you sell, you are entitled to not pay tax on these materials. And in order to do so, you need a reseller's certificate or permit? My problem, in trying to understand how to do this, is that you must have an EIN. Since I am using my SS# as my Tax ID, I do not have one. Is there any way to be able to forgo paying tax on the materials I buy, or apply for a resellers certificate just using my SS# as my tax ID?

  2. #2
    theprodigy101's Avatar
    theprodigy101 is offline Senior Member
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    Nov 2005
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    You don't need an EIN to avoid paying taxes. All the resellers certificate really is is a contract that you sign saying that you will obtain taxes from your customers and this contract gets sent to your supplier, not the government. You can find the reseller certificate, even though it's not really a certificate per se, on the Internet through your state business website. This is how it is in New Jersey, I'm not sure if I can say the same for your state.
    www.RichFratBoy.com- Don't just be a young entrepreneur. Be a WEALTHY young entrepreneur.

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  3. #3
    LightHouse's Avatar
    LightHouse is offline Senior Member
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    honestly a EIN takes 10 mintues to get, however, i would talk to a CPA or search online for a solid answer. There nothing like an audit and big trouble for not knowing exactly

  4. #4
    theprodigy101's Avatar
    theprodigy101 is offline Senior Member
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    The biggest advantage to an EIN is that you don't have to give out your SS# when giving out your business information. But yeah, don't take my word for it. See a CPA or lawyer's advice to see what would be the best option.
    www.RichFratBoy.com- Don't just be a young entrepreneur. Be a WEALTHY young entrepreneur.

    RohailRizvi.com- My blog

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