Why You should have a
Sales Tax ID number
Other than complying with state tax laws, there is another good reason to have a sales tax ID number, and that is to purchase goods and services from suppliers. If a company you do business with doesn’t require one, then its possible you are not getting the best price on your purchases. For example, legitimate direct from factory wholesale suppliers will not charge you sales tax on products they ship to you or your customers. The ID number you provide assures them that you are collecting the tax on your customers’ purchases where required. Generally speaking, you only have to collect sales tax on sales of products to customers with addresses in the state where you do business. Each state has its own requirements and rules. Go to the State Revenue Department website of the state your business is located in to determine the rules and rates and to apply for your ID number.
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