Wholesale

What is the name of your state? Massachusetts

I've been looking at numerous wholesalers and want to order products from their websites/catalogs but I don't have any interest in actually reselling these products at the retail level, I simply just want to buy theses products for myself. The problem is I can't buy from these wholesalers unless I obtain an EIN (Federal Tax ID). So I applied for an EIN number and received one from the IRS. But I don't know what to do with it. I understand having the EIN comes with great responsibility and I don't want the IRS knocking on my door. What do I do? Can I order products from these wholesalers and just pay the tax on the things I order. If so, how do I go about this. I really don't want to commit any crimes, I'm a honest individual.

PLEASE HELP!

Thank you in advance to all who can offer me some advise I really appreciate it!What is the name of your state?

For an individual, your EIN is usually your Social Security #...

Thanks for the reply zinger.

I understand that you can use your Social Security number as an EIN however I'm leery about giving out my SSN to random businesses, especial thoes over seas. The IRS reccomends you obtain an EIN as it protects you from the potential identity fraud that could likely result from giving out your SSN.

Regardless, my question was can I order products from these wholesalers and just pay the tax on the things I order? If so, how do I go about this?

anyone?

Wholesalers make money by selling lots of goods at low margins. They do not want consumers such as yourself buying becuase the costs to service your account are greater than the profits on your sales.

But you are free to try. And they are free to refuse to do business with you and to request certification. Some states require special certification numbers, while others like texas make you fill out forms to send to the supplier. For example, see Harvard's list of tax exempt status

http://vpf-web.harvard.edu/ofs/procurement/pro_rec_sta.shtml

If you want to fill out the form for Mass, go to

http://www.wynit.com/reseller/Massachusetts.pdf

Be sure to read the little text in the bottom right corner of the form where it tells you that you will be fined $10,000 for lying about being a reseller.

Yes, you can. You file a sales & use tax return with your home state. You declare the wholesale price you paid, then apply the state & local sales tax rates & send in a check. Contact the MA Dept of Revenue for forms. They can also probably help you fill them out. Be sure to track purchase price & shipping charges separately.

You'll also want to make sure things are duty free, or customs fees will kill your savings.

You should document that you are not reselling things or operating a buinsess in case the IRS asks for a business return. You can simply inform them you only buy things for personal use & it's not a business.

What about federal taxes? Do I have to to do anything on the federal side of things as well or do I only need to deal with State taxes and pay the sales/use tax?

There are no federal sales taxes yet. The customs fees are how the feds can get their paws on your dough.

Some Random Guy said:

There are no federal sales taxes yet. The customs fees are how the feds can get their paws on your dough.

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Thanks SomeRandomGuy...

Ok, great. How do I go about paying customs fees. How will I know if I owe customs fees?
Do i pay customs fees before of after the products are imported? How big are the fees generally? Does it go be a certain percentage of the purchase price or what?

xmordeciax said:

Thanks SomeRandomGuy...

Ok, great. How do I go about paying customs fees. How will I know if I owe customs fees?
Do i pay customs fees before of after the products are imported? How big are the fees generally? Does it go be a certain percentage of the purchase price or what?

Click to expand...

Anybody have any answers for the questions above. Any hel p would be greatly appreciated.



Also, I'de like to take this opputunity to thank everone else here who has already helped me out, with out you guys i would be lost. THANK YOU, THANK YOU, THANK YOU!!!

xmordeciax said:

Thanks SomeRandomGuy...

Ok, great. How do I go about paying customs fees. How will I know if I owe customs fees?
Do i pay customs fees before of after the products are imported? How big are the fees generally? Does it go be a certain percentage of the purchase price or what?

Click to expand...

You will know when you have to pay the custom's fees, because the product will not be released to you until you do. It will ship to the US, be delivered to customs or held in the shipping company's bonded warehouse, and it will be released to you after customs duty is paid.

Its a percentage of the purchase price of the goods. The amount of the percentage depends on the type of goods. There are literally hundreds of different percentages in use.