State Sales Tax
You are required to collect state sales tax in most states whenever you
sell a physical product to an “end user” in the same state.
The “end user” would be the individual by whom it will actually
be used as opposed to a distributor or reseller that would actually turn
around and sell the item to somone else. Sales tax is only to be collected
during the course of the actual consumer sale and is based on the actual
cosumer price according to the state and local laws.
You are not required, in most states, to collect sales tax for the performance
of a service although many states still require that you register with
them anyway. If you provide a service and also sell products then you
are required collect sales tax on the sale price of any products that
are sold to end users in your state.
If the transactions cross state lines than most states do not require
that you charge sales tax on non-residents purchases but the attitude
towards this is changing as the Internet continues to evolve and more
transactions are conducted via the web.
State Income Taxes
A Federal Tax ID Number serves as a sort of Social Security Number for
your business. This is especially true if you incorporate you business
however, if you do not incorporate your business, you can use your own
Social Security Number as your Federal Tax ID Number.
The only exception to this rule is when you hire employees.
It is neccesary to get a Federal Tax ID Number if you intend to hire employees
in order to track your companies payroll taxes.
If you need to file for a Federal Tax ID Number you can use the form below.
You will need to have Adobe
Acrobat Reader in order to view the document and print it. You can
also save it to your local drive for veiwing at a later time.
If you are in a hurry, you can get your Federal Tax ID Number over the
phone by calling the IRS directly. The phone numbers are on page third
page of the application. You will need to have the completed form in front
of you when you call and you will be required to mail it to the IRS after
they provide you with your Federal Tax ID Number.