If nothing else to save the cost of the tax which is 7% in my
area. 7% more I can put into my pocket when I sell my work
My point was that a sales tax number does not license someone to get
the best price breaks. It seems to me that newcomers are made to
believe that if they have an account set up with the state to ease
the collection of legitimate sales and use taxes, that someone will
give them a better deal on the goods that they buy. This is not
Also, some wholesalers will not do business with you unless
you have a tax license.
Too bad for them. As I was trying to point out, I will deal with the
dealer that will give me the best bang for the buck. I very rarely
run into a “need” for tax number for my purchases.
One example is my local lapidary and jewelry supplier. Their
retail prices are near what the mail order places charge and then
they give me an extra 10% off and don't charge me sales tax because
I have a tax license.
And if he wants to continue to do business with you, he’ll keep
offering the discount to you. This is hardly a “wholesale” purchase.
I see 30, 40, 50 and even 60% discounts at the malls every day. This
doesn’t make them “wholesale” purchases. Anyone that wants to buy
wholesale needs to do volume, volume, volume. As for the tax
discount, in my state, I am required to pay the sales tax on the
tools and equipment that I use as a use tax. Same tax.
A sales tax license can get you into some wholesale shows.
There are plenty of ways around this in most cases and any show that
lets a person in just because they have a sales tax account isn’t a
real wholesale show. Plumbers and carpenters have the same accounts
and they get in as well.
I might add that when you support shows like this, you are
supporting your competition. Good going.
Also, having a tax license legitimizes you as a business.
Laborers are legitimate busimen. They are selling their labor for
the best price that they can get. Such sales have nothing to do with
whether or not they are legitimate.
When you file with the IRS, especially if you are reporting a
loss, the IRS sometimes likes to check if you are running a
legitimate business and not just using a shell to write off
Let 'em check. If you aren’t dealing drugs or stolen goods, you
aren’t making frivolous claims or avoiding legitimate sales and use
taxes, what do you care?