Ein Number - Pros? Cons?

Business By 61999 Updated 12 Nov 2014 , 10:04pm by MimiFix

61999 Posted 12 Nov 2014 , 9:21pm
post #1 of 3

Can anyone tell me if there are any pros and/or cons to having an EIN # aside from not paying sales tax?  Do you pay the sales tax later?  How does it work?

2 replies
dkltll Posted 12 Nov 2014 , 9:49pm
post #2 of 3

EIN number is your Federal Employer Id # you would get another number for Local Sales Tax Exemption. The only advantage is not paying tax on the goods you are going to make to sell. You are exempt as a wholesale buyer. Since you often pay sales/use tax (check your area) it keeps you from double paying.


Most places that you buy wholesale items from will require the EIN to show that you are a business. HTH

MimiFix Posted 12 Nov 2014 , 10:04pm
post #3 of 3

You can use your social security number instead of an EIN, but with identity theft such a big issue, you are safer with an EIN.

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