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Ins and outs of Wholesaling


#1

Hello Everyone, I will begin to sell my jewelry wholesale off my
website next month. I was wondering if anyone knows how to check tax
id #'s to make sure they are valid. I’m also guessing that because a
sale is “wholesale” no tax is paid to the state. Anything else I
should know about this from my more experienced friends at Orchid?
Please let me know as I don’t want to pay an accountant if I don’t
have to. Thanks, Augest Derenthal Cry Baby Designs


#2

Why would you not want to pay an accountant? You clearly need
accounting and tax help. The accountant that you do not want to pay
will save you more money than will cost you.

Daniel J. Statman, Statman Designs
www.statmandesigns.com
@Dan_statman


#3
Hello Everyone, I will begin to sell my jewelry wholesale off my
website next month.  I was wondering if anyone knows how to check
tax id #'s to make sure they are valid.

As long as you have the tax ID numbers and the corresponding
invoices showing those amounts, you do not need to “prove” the ID
numbers are valid. Check with the comptroller’s office in your state
to find out what the amount is for reporting purposes. You have to
show this on your Federal Tax return at the end of the
year.

I'm also guessing that because a sale is "wholesale" no tax is
paid to the state." 

Again, rules vary from state to state. If you are selling from your
website to a user who is out of state, then you do not need to
collect sales tax. If you are selling to someone who resides in your
state, and that person has no plans to resell the jewelry, then you
need to collect sales tax.

Generally speaking, wholesale is where you are selling a sizeable
quantity to another retailer who will then make the final sale to the
end user, who is ultimately responsible for paying the sales tax. If
you are just making a few pieces here and there and selling them from
a website, you really should be collecting sales tax if the purchaser
resides in your state.

Betty