Tax Exempt Number

Discussion in 'Business Operations' started by muxx, Oct 22, 2003.

  1. muxx

    muxx LawnSite Member
    Messages: 187

    Does anyone know how to go about getting a Tax Exempt number. It is not the same as a Tax ID number from IRS is it? Any info would be great. Thanks
  2. Grassmechanic

    Grassmechanic LawnSite Silver Member
    Messages: 2,697

    In order to achieve tax exempt status, you have to file the correct paperwork to form a Non-Profit or Not-For-Profit organization.
  3. Mikes Lawn Landscape

    Mikes Lawn Landscape LawnSite Senior Member
    from Texas
    Messages: 458

    In Texas it's through the State Comptrollers office and you use it to purchase materials that you are going to re-sell to clients and charge sales tax to. We call it a Re-sale certificate I believe.Is that what your talking about. Check out your states website and search for Sales Tax or Resale certificate.

    Good Luck
  4. Green in Idaho

    Green in Idaho LawnSite Senior Member
    from Idaho
    Messages: 833

    Muxx, as the two posts indicate there is confusion as to what you are asking about.

    Since a nonprofit does not have special 'tax-exempt' number. It can be assumed you are referring to the resale/sales tax purpose. And THAT is done through your state.

    I'll bet you asked to buy at wholesale prices from someone and they asked you for your tax-exempt #....????
  5. GroundKprs

    GroundKprs LawnSite Bronze Member
    Messages: 1,969

    Some businesses will ask for your FEIN (Federal Employer Identification Number) to verify that you are a business, to qualify for business wholesale pricing. Even if you are a solo operator, it is a good idea to have a FEIN. Then if and when you do start to hire, you don't have the hassle of rushing to get the ID number. Of course, if you are then registered as an employer, there are reports you will have to file, even with all zeros on them, LOL. To avoid the filing requirements, if you are solo, write distinctly on your FEIN application form: "FOR INFORMATION ONLY" and you will not be required to file. Also, if you are an employer, and revert to solo, you will have to file zero reports for about a year before IRS puts you on an inactive status. But you still have the FEIN to use if and when you need it.

    For state sales tax exemption, in most states you are exempt from paying sales tax ONLY on items you purchase for resale. If you are licensed by your state as a retail merchant, collecting sales taxes, you will have the info necesssary to make these tax exempt (for resale) purchases. Check with your own state revenue department for the proper procedure.

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