Tax Id Or No!

Discussion in 'Business Operations' started by prairie, Dec 7, 2001.

  1. prairie

    prairie LawnSite Member
    from kansas
    Posts: 115

    CAN ANYONE TELL ME WHAT THE BENEFIT IS BY BUYING W/ A TAX ID #. COMPAIRED TO PAYING TAXES WHEN YOU BUY MATERIAL?
     
  2. MATTHEW

    MATTHEW LawnSite Senior Member
    from NE OHIO
    Posts: 665

    Sales tax on a product is to be paid by the purchaser;the customer. You are acting as the middleman and should not pay the tax. You should charge the customer for the tax and send it to the state each month. If you have a licence # , you should be getting forms to file each month. If you do not, you need to have one to be a legitimate business.
     
  3. BRL

    BRL LawnSite Bronze Member
    Posts: 1,211

    Each state has its own tax laws. Make sure you talk to an accountant, or your state's tax division, or an LSer from Kansas in case its not exactly as Matthew says for his state.
     
  4. GroundKprs

    GroundKprs LawnSite Bronze Member
    Posts: 1,969

  5. BRL

    BRL LawnSite Bronze Member
    Posts: 1,211

    Thanks Jim I missed that.

    And Prairie,
    PLEASE stop shouting at us!
     
  6. walker-talker

    walker-talker LawnSite Platinum Member
    from Midwest
    Posts: 4,771

    You can pay the tax at the time of purchase and include that in your bill to your customer. It is called streamline bookkeeping. Go to the SBA website for Kansas, they are always offering free seminars for small business and will even meet with you one-on-one for counseling. The counseling is free, as is most of the seminars. I am from Kansas as well and just attended a 3 hour free seminar on taxes last week. Very helpful.
    Matt
     

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