Originally Posted by Therapy
I am not sure what that would do for you. In Florida to be a business (before they give you tax ID or EIN number) you must register as one. This requires fees and a "real" address. It also has recurring fees of all sorts plus IRS filings each year. Seems overly complicated to save on some taxes because those taxes have to paid sooner or later by someone. I can buy stuff at Sams and not pay taxes but if I sell it "they" want the taxes paid. They get them either way. Are you a business entity that buys stuff tax free and never resells so never has to pay the taxes? I don't know how that works. Or are you flying "under the radar" and dodging?
You are missing the point of what GoPrisko was talking about. It is not about avoiding paying Florida Sales Taxes. It is about establishing yourself as a business to get "wholesale" prices versus retail prices from suppliers.
- - Many Florida areas do not have or require any local licensing to establish a business. In that way, Florida is still somewhat of the "frontier" State.
- - However, the State of Florida wants it "cut" otherwise known as "Sales Tax." As a "business" you purchase
your requirements at "wholesale" and if you are going to use the item yourself rather than sell it to somebody else - you "sell" it to yourself and pay Florida the Sales Tax due on the item. You do NOT avoid paying Sales Tax. You do get an opportunity to purchase
items at wholesale.
- - The Fed's do not get into the picture unless you sell items to others. Then you are a sole proprietor and if your sales are miniscule you file your 1040 with a form for business profits/activity. Nothing difficult.
- - An "EIN" is a Federal Employers Identification Number that is issued to your corporation if you create any form of a corporation to handle your business transactions rather than do it as a sole proprietor.
- - The whole process is time consuming but you can decide if the amount of money
you save by buying
wholesale versus retail is worth the time filling out monthly Sales Tax forms and sending in the money
. And it has to be done each month or you will be penalized up to $50 for a late form whether you owe Sales Tax or not.