Saturday, February 11, 2012

Why You Need a Tax ID Number for Your Craft Business

Anytime you say the word "tax" people tremble with fear. Doesn't matter if its horse people or craft people they are so scared of the T word.

I have watched many home business's fail because they are so afraid of sales tax, income tax etc.

It really is not a big deal and it really isn't scary.

If you are running a home business you must have a tax ID number! This enables you to buy supplies in bulk and wholesale. Many companies will not sell you supplies at wholesale cost unless you have this number.

Because I sell food I do not have to charge sales tax at craft shows. Yet I still have a tax ID number for the state of Ohio. Why? So I can buy bulk and wholesale supplies!

Just an FYI some states may call it a vendor number and others call it a tax ID number and yet others will call it a resale tax number.

Many are afraid of doing the reports. Most states now have it so you can file online so its even easier than ever. If like me you do not collect a lot (or any) sales tax you can set it to only file quarterly or once a year. s

Also keep in mind many of the bigger money making craft shows will not allow you to rent space without this number.

Just look up the website for your state and many times its listed under "commerce"

Here is the link for the state of Ohio tax vendor number.

If you start out with a semi annual report and your sales increase, the state will probably notify you that you need to report more often.

Happy Craft Selling!

No comments:

Post a Comment

Kay's Crochet Mystery Boxes/Bags Update

We have been getting a lot of questions on our Mystery boxes so here you go! First some have asked why we are now shipping in bags. USPS...