Im trying to get set up at the local farmers market to sell my honey and the manager is telling me I need a tax ID number in order to be a vendor. So I go online and all my research tells me that I dont need to charge tax on honey sales in North Carolina but she says I have to have a number anyway so I start to look into it and its become confusing. I type in tax id number and keep getting directed to employer id number stuff. Does anyone know if its the same thing? Im not really even sure I want to do this but it would be nice to have a stand at the market.
Same here in Ohio, you can just use your Social. Why don't you approach some of the other small guys at the market and ask them.
On second thought I do not think that would be state specific as what she is asking for is the federal tax id#. I regularly pay body shops and have to get their fed. tax # but some small ones just use their soc. #
Just be glad you're not in Maine... Forbes just ranked us 50th for being a great state to run a business in... that's good right?
If you're a sole proprietor then it's just your SS#. Partnerships and corporations need another, but when you're a sole proprietor, YOU are the business. This goes along with you being personally liable for whatever the business does or is responsible for. If it's anything like Ohio, which is the only state where I've been through this, you still need a vendor's license even if the stuff you're selling is non-taxable. You will have to file sales tax returns that say how much you took in and how much of that amount is non-taxable, so you can pay tax on the difference. It doesn't matter that the non-taxable amount is 100% and you owe no sales taxes; filling out the form is how the state *knows* that you don't owe taxes.
Oh, and FWIW the vendor's license I got in Ohio was inexpensive (a one time fee of like $10, I think), and the periodic sales tax filings were pretty simple. If you have a lot of honey to sell, I wouldn't let the red tape put you off.
Thanks for the replies they have showed me a couple things. 1-we need more people from North Carolina on here 2-It got me thinking and looking in the right direction. I talked to the farmers market manager and she helped get me pointed in the right direction and on Monday Im going to call the department of revenue and double check with them that I dont need to charge a sales tax. Im under the impression that as ling as its something thats grown at my home and I am the one selling it a sales tax is not required. The FM manager told me that the only reason they are requiring this is because last year in Raleigh the government cracked down on a huge farmers market where most of the vendors werent charging tax thus a loss of state revenue so they passed laws and now every farmers market, craft fair and what not vendor need to be registered with the state even if they dont have to charge taxes So I will comply and play their game even though Im not even making enough money off of this to make a mortgage payment it will help to get my product moving.
sales tax ID numbers are through the state. EIN is different that is the federal Employer Identification Number. Google North Carolina sales tax ID number. You might have luck with that.
I will note there are such things as sole proprietor LLC's which at least theoretically creates a buffer between you and your business. You need an EIN for a sole proprietor LLC. And you need to keep the division between you and your company clean. A business bank account and the company pays you some sort of salary.
I came across a couple sites offering to be my LLC for a small fee of course ($150-200) They asked if I was sole proprietor or what not and then asked for money I passed and ended up on the IRS website where they had a completely different definition of sole proprietor which didnt involve any type of LLC or affiliation. This mess is getting confusing.
That is as may be, I just remember being asked specifically if it was going to be operated by a sole proprietor or in partnership.
I went to the NC dept. of revenue. I think this is the page to get you started. http://www.dornc.com/downloads/sales.html Registration page http://www.dornc.com/electronic/registration/index.html
Thanks forage farmer Im currently stubbling my way through that site. I was looking at the IRS page but the lady told me I dont need a federal number just a sales and tax use number. At least now Im on the right track.
