State Tax ID #'s

Discussion in 'Starting a Lawn Care Business' started by cookcd, Feb 6, 2006.

  1. cookcd

    cookcd LawnSite Member
    Posts: 8

    I have my federal tax id #. What about a state tax id#? How do you go about getting this, and what are the discounts and breaks you get for having these id's? Do you not have to pay sales tax?
     
  2. Roger

    Roger LawnSite Fanatic
    Posts: 5,927

    In PA the EIN is used for state sales tax filing. The state has no unique number. Your state may be the same, or may be different.

    You never "pay sales tax," rather you are merely the collection agency for collecting the monies from customers and then passing it along to the state. The customer is the one "paying the sales tax." Again, you need to review what services, or parts of services, that are taxable. Our rules in PA are strange, and yours may be also. The Dept of Revenue (or similiar) in your state can provide all the information you need to set up an account, what is taxable, procedures for passing along the money. The filing may be monthly, quarterly, or whatever, but, again, the taxing agency has all that information.
     
  3. cookcd

    cookcd LawnSite Member
    Posts: 8

    So, for instance, say I was doing business in PA, and I wanted to buy a Backpack blower. I would go to the dealer, show them my EIN # (federal), and I would not be charged sales tax? I would pay for the item without paying the extra 8% or so? Is this correct. I don't want to slap down my EIN# and look like an idiot because they say that I need a state tax id#. The AR DFA website makes it seem like the state id# is for retailers and wholesalers, which I am not.
     
  4. CLARK LAWN

    CLARK LAWN LawnSite Silver Member
    Posts: 2,526

    you would have to pay tax on the blower.where you would be tax exempt is on materials and supplies used on a job. example would be when i buy mulch i get it tax exempt but if joe homeowner buys mulch at the same place he pays tax. now when i do the job i collect tax from the customer for the mulch and here we also collect tax on services.im in ohio my number was issued by the state and semi annually i have to pay the state the money i have collected in taxes
     
  5. cookcd

    cookcd LawnSite Member
    Posts: 8

    How do you guys up north in the cold make it through the winter. Right now, this is just a side job for me, but I would like to make a go of it eventually. When the money is there it is better than what I make at my job.
     
  6. CLARK LAWN

    CLARK LAWN LawnSite Silver Member
    Posts: 2,526

    plow snow i have some seasonal and some on per push. i also help out a friend of mine at his auto repair shop.
     
  7. cookcd

    cookcd LawnSite Member
    Posts: 8

    I have thought about cutting wood, but I started to try it this year and wussed out. I had trouble finding a place to cut it. I wasn't equipped to do it. My Crapsman chainsaw broke my 2nd time out. Plus, that is some hellacious work. Wow! It might be worth my while if I had a 1 ton flatbed with a larger trailer, a couple of Stihl chainsaws, and a logsplitter.
     

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