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Tax ID with none taxable food? Question

post #1 of 8
Thread Starter 
Hello 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.
post #2 of 8
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.
post #3 of 8
Thread Starter 
Quote:
Originally Posted by jason_kraft View Post

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.
post #4 of 8
A 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
post #5 of 8

Does your city not require tax on sales though?

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*Top 100 Designers in The USA, Brides Magazine, 2013*<---little ole' me!
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post #6 of 8

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.

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post #7 of 8

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.

post #8 of 8

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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