LovelyCakes4Us Posted 29 Jan 2013 , 6:20pm
post #1 of

AHello y'all, question don't freak out on me now but I'm wondering, in my state there is no tax on any food, I called around to cupcake and cake shops they as well do not charge any tax for their products.

My question is do i need a tax ID number? I'm going to be participating in the local farmers market and they said something about needing tax form but to- check none taxable.

7 replies
jason_kraft Posted 29 Jan 2013 , 6:27pm
post #2 of

AAre you talking about the taxpayer id number for income taxes? If so, the IRS does require one, if you have a sole prop you can use your social security number or you can file for a free business tax ID (EIN).

If you are talking about sales tax that depends on your state.

LovelyCakes4Us Posted 29 Jan 2013 , 6:36pm
post #3 of

A

Original message sent by jason_kraft

Are you talking about the taxpayer id number for income taxes? If so, the IRS does require one, if you have a sole prop you can use your social security number or you can file for a free business tax ID (EIN).

If you are talking about sales tax that depends on your state.

What is sole prop? Sorry probly a stupid question.

jason_kraft Posted 29 Jan 2013 , 6:43pm
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AA sole proprietorship is a form of business. You are a sole prop by default if you run the business yourself and do not form an LLC or other type of corporation.

Here's some more info: http://www.nolo.com/legal-encyclopedia/sole-proprietorship-basics-29694.html http://www.nolo.com/legal-encyclopedia/does-sole-proprietor-need-employment-identification-number.html

AZCouture Posted 29 Jan 2013 , 6:53pm
post #5 of

Does your city not require tax on sales though?

elliespartycake Posted 29 Jan 2013 , 7:24pm
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There is no tax on the baked goods I sell in my state either. Since I file my business return on a Schedule C as part of my personal return I do not need a tax id#. Depending on your state/city that might be the case for you as well.

ellavanilla Posted 30 Jan 2013 , 1:25am
post #7 of

your tax ID is not for paying your local sales tax, it's for your income tax. as was already pointed out, you don't have to have it in every circumstance, but it is necessary if you are going to pay employees, or make wholesale purchases.

jgifford Posted 30 Jan 2013 , 5:20am
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You can keep everything, including income taxes, under your SS #.  The tax id # is for paying employment taxes for any employees you might have.  When you apply for the Tax ID #, or EIN, one of the main things is how many employees you have or will expect to have. 

 

Under the Cottage Food Law in Texas, you're not even required to have a business license and there is no state sales tax on cakes.  But, you can't purchase from many suppliers without a license or a tax id or both.

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