Id's

Business By jnestor Updated 25 Jun 2007 , 12:03am by jnestor

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jnestor Posted 24 Jun 2007 , 2:54pm
post #1 of 7

Can anyone tell me the differences between a federal tax id, and a sales and use tax id? I'm trying to get all my paperwork in order, and I'm totally lost!

6 replies
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Hippiemama Posted 24 Jun 2007 , 3:54pm
post #2 of 7

A federal tax id will be your ein if you filed one or your personal social security number if you are a sole owner and didn't request a ein. Your sales tax id has to be applied for separately. This is the number that you use to remit sales tax.

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beccakelly Posted 24 Jun 2007 , 7:17pm
post #3 of 7

not sure exactly what type of biz your doing, but im in ohio too, and if you're just selling cakes you don't need to charge sales tax (food is exempt) so you don't need an id for it. i just use my soc sec number for my biz id, so i didn't need to apply for an ein. most likely you don't need either one. (only really need an ein if you have employees).

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jnestor Posted 24 Jun 2007 , 11:26pm
post #4 of 7

Right now I am just doing the cakes, but I was thinking about expanding, and selling like candles, and such as well. Do I just use my social as my ein, and apply for the sales id? I haven't made up my mind, i may just stick with cakes for a little longer, but I would like to expand at some point.

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beccakelly Posted 24 Jun 2007 , 11:30pm
post #5 of 7

how are you set up? im a sole proprietor, so i just keep track off all income and expenses then i file my biz taxes with my personal taxes and use my ssn. so if you are doing the same, then yes just apply for a sales id if you decide to start selling other items. if you are an llc, the rules might be different, im not positive what they have to do.

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JoAnnB Posted 24 Jun 2007 , 11:30pm
post #6 of 7

since you have to give it out to people who pay you and for some businesses as proof of a business, and EIN is a good idea.

It is easy to get, and is no big deal. I don't NEED one because I don't have employees, but I do file my business taxes with it. I can also use it as proof of a business to get some wholesale pricing.

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jnestor Posted 25 Jun 2007 , 12:03am
post #7 of 7

Thank you all for your input. Beccakelly I am sole proprietor, and no employees. I had been told to just use my social as my ein, and I think that is what I am going to do. I just started so I still have a few things to get in order. I think I'll just file for the sales id as well. Thanks again!

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