Taking the plunge

Taking the plunge

Post by Rene » Fri, 07 Jan 2000 04:00:00



Well, I'm gathering the courage to try to sell my earrings
to boutiques.  I have a number of questions which I will
post once I can state them clearly.  My first question,
however, is simple.  Do I need a resale number in order to
sell to stores?  I'd rather not get all charged up and then
look like an idiot my first time out...
Thanks!

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Taking the plunge

Post by Loris11 » Fri, 07 Jan 2000 04:00:00


Quote:
> Do I need a resale number in order to
>sell to stores?

Sales tax is required to be paid by the *final* consumer.  The stores need a
resale number to keep from having to pay YOU (or their other vendors) sales
tax, because they will be reselling the items.  You are not *re-selling*
earrings if you made them (they didn't exist before!), only if you bought them
ready-made.  You are re-selling beads and findings, however.  If you had a
resale number, you  would not have had to pay sales tax on those purchases of
beads.  Does that help?

 
 
 

Taking the plunge

Post by Rene » Fri, 07 Jan 2000 04:00:00


That's what I thought, it seemed logical, but I just wanted
to make sure I was on the right track.  Thanks for helping.

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Taking the plunge

Post by Meg » Fri, 07 Jan 2000 04:00:00


In a state that has sales tax collected by the retail vendor, THEY must
supply you with a certificate with their tax number on it.
You could get caught in the middle of something very ugly if the state
decides to audit you.
Don't rely on a store to send you the certificate at a later date.
Demand that they give you the certificate when you bring the merchandise to
the store.
Whether you leave things to be sold or sell them outright.
You need this certificate for your records.
I've heard of some pretty awful things happening to artists that didn't have
a resale certificate when they were audited by an over-eager IRS agent.
I keep the certificates in a special file folder with files for each of the
vendors I do business with.
You should have a tax number so that you don't pay sales tax on materials
that your purchase.
Keep careful records of all materials bought and all finished products sold.
At the end of the year, it will come in handy when preparing your tax return
for your business.
When you apply for your tax number, the state may require that you file a
tax return quarterly, but you can request that you only file once a year
especially if your business falls into a very small business category.
Even if you don't have any sales, you are required to file that tax return
or the state will assume you have done business and are withholding tax
monies that belong to them. They will arbitrarily assign an amount of tax
money and I can assure you, it will be much higher than you ever collected
from any business or craft sale you made that quarter.
Good Luck !
Meg
 
 
 

Taking the plunge

Post by sunny ro » Sat, 15 Jan 2000 04:00:00


All the posters were correct..i just wanted to wish you good luck...make
sure you have an invoice, sometimes photos or postcards to leave w/ a
buyer are good and make sure you and the store are speaking the same
language....make 'em sign that invoice!!!!! We never consign for any
reason, but then we live in a city (Las Vegas) where there is NO
shortage of shops and malls (in every ***) and gift shops and
galleries so if one person doesn't like our terms....we go elsewhere!!!
Best of Luck to you,
Sunny Rose Silver
Earthly Treasures Contemporary Beadwork