Tax ID Number/Making Profit

[misscrystaldawn]

I wanted to start selling some prints online, but I need to get a Tax ID Number.
If I pay to get a Tax ID Number, what's next?
What if I don't sell anything? Am I in trouble for trying to get an online print business started and it falling through.
I'm sorry for asking these questions, I'm a complete newbie, and I have an order in for a couple of books.
Crystal

[zepp]

For federal income tax purposes, if your a sole proprietor, you can use your Social security number on your schedule "C" to report income.

For Texas sales and use tax, you must obtain a permit from the state and collect, report, and remit the taxes to the state per their guidelines.

[Clint_Smith]

Originally Posted by misscrystaldawn

I wanted to start selling some prints online, but I need to get a Tax ID Number.
If I pay to get a Tax ID Number, what's next?
What if I don't sell anything? Am I in trouble for trying to get an online print business started and it falling through.

you don't have to pay for a tax id number. And yeah. you could be in trouble. especially since you just told a bunch of professionals you are throwing your hat in the ring.

I actually know a guy that gets his grins by going after people without tax id's that are selling so called professional photographic services.

[misscrystaldawn]

Originally Posted by Clint_Smith

you don't have to pay for a tax id number. And yeah. you could be in trouble. especially since you just told a bunch of professionals you are throwing your hat in the ring.

I actually know a guy that gets his grins by going after people without tax id's that are selling so called professional photographic services.

I guess you didn't read the question thoroughly. I'll clarify from my end. If I get my tax id number, which I AM. And, I don't sell any prints, am I liable for anything? If I don't sell anything I don't have anything to report????
That was the question...

[zepp]

Originally Posted by misscrystaldawn

I guess you didn't read the question thoroughly. I'll clarify from my end. If I get my tax id number, which I AM. And, I don't sell any prints, am I liable for anything? If I don't sell anything I don't have anything to report????
That was the question...

I read your original post as "pay to get tax ID" also but took it as a typo

To answer your question... Both Income Tax and Sales Tax.... No, you can't be liable for money not collected and please don't give either government agency the idea.

EDIT: Perhaps I should clarify on the sales tax... If you bill the client sales tax according to the rules and they in turn do not pay it, it is your responsibility to collect the tax from the client or pay it out of your pocket to the state.

[misscrystaldawn]

haha.. I promise I'm not trying to give anyone ideas.
Thanks for your help, I really appreciate it.
I know I'm not on the level of many of the amazing photographers on this site.
But I'm just happy making $5.00 with stock photography. It's my way of keeping my self esteem up to keep learning and shooting. :)

[adirty1]

If you sell something in the state you have to pay sales tax. You need your DBA to get a tax id number. You have to pay for the DBA. If your sales are out of state then you don't need to collect tax but you have to record it for the IRS.

[carlyerin]

you know card and i have been trying to figure out how to GET a tax ID number.. . . how?

any links or info appreciated

[CobyPhoto]

Crystal,

One note...if you do get a Texas Tax ID, even though you do not have sales for the period, you still MUST file a report with them or they will come after you. Not sure the fines, but they can levy a fine on you for NOT filing no tax due.

It is really simply to do on-line however, and they send you the paper form to remind you.

CJ

[CobyPhoto]

Originally Posted by carlyerin

you know card and i have been trying to figure out how to GET a tax ID number.. . . how?

any links or info appreciated

Here ya go: Online Texas Online Tax Registration

CJ

[CobyPhoto]

Originally Posted by adirty1

If you sell something in the state you have to pay sales tax. You need your DBA to get a tax id number. You have to pay for the DBA. If your sales are out of state then you don't need to collect tax but you have to record it for the IRS.

You actually do not HAVE to have a DBA to get a tax number...but you will have to have the DBA to get a Bank Account under your business name. Texas will issue you a Tax ID Number linked to your social, without a DBA. However, a bank will NOT issue a bank account to a company name without the DBA document filed at your local County Court House.

CJ

[Edg02]

Mine won't let me open up a business account unless I have a TIN or EIN (depending who I'm talking to) issued by the IRS. So I've taken the my social route, ideally though would prefer them separate. Suggestions on how to fix this? (i.e. try another bank, person, etc?)

Sorry. Didn't mean to hi-jack. Just curious. Thanks!

[misscrystaldawn]

I hate to keep bringing up questions, and I swear I'm semi-intelligent...
When I apply for the Texas Tax ID, do I also need to apply for a Federal Tax ID through IRS. I tried visiting their website, and I couldn't find any info. My plan is just stock photography, and maybe selling prints if I get accepted into any artist shows.

[picasso]

Originally Posted by Edg02

Mine won't let me open up a business account unless I have a TIN or EIN (depending who I'm talking to) issued by the IRS. So I've taken the my social route, ideally though would prefer them separate. Suggestions on how to fix this? (i.e. try another bank, person, etc?)

Sorry. Didn't mean to hi-jack. Just curious. Thanks!

There are benefits both ways. I had two bankers tell me they could use a DBA and my social security # but the would not do it if they were opening the account. They both said keep personal personal and business business. Even though the IRS could look at both from a tax perspective if you keep everything filed under your business then they are not looking over your personal returns when they have questions about your business finances and your social security# is not co-mingled with your taxes for your business which could get confusing if you happened to be audited.

Drawbacks are I think it probably cost more from a tax preparation perspective and is a little more foot work and detail

Banks that I have talked to that will just take a DBA and no EIN

Bank of America
Chase
Wachovia
Capital One
Wells Fargo

Paul

[picasso]

Originally Posted by misscrystaldawn

I hate to keep bringing up questions, and I swear I'm semi-intelligent...
When I apply for the Texas Tax ID, do I also need to apply for a Federal Tax ID through IRS. I tried visiting their website, and I couldn't find any info. My plan is just stock photography, and maybe selling prints if I get accepted into any artist shows.

I could be wrong but I don't think so. I think if you are going to have employees beside yourself you might have to but you can report everything for you on your own personal tax form. I could be totally wrong about this though. Maybe someone will chime in that knows more.

Paul