# What type of account should I open?!



## nimo05 (Oct 16, 2007)

Hello,

Basically I have a EIN number.....what type of bank account should I open up? should I open one using my social or EIN number?

setting up wholesale accounts with stores im supposed to get there tax ID number? 
Does this mean I dont charge them tax when I sell them wholesale?
How exactly does that process work?

Im pretty lost when it comes to taxes, etc.....

Thank You


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## MoustacheKC (Mar 19, 2007)

You should open a business checking account with your businesses Federal TaxID (aka EIN). It's important to keep your personal accounts separate from your business; otherwise, it'll get hard to manage.

It's wise to have as much information about your customers as you can, but I'm not aware of any law/regulation that says you have to. I would definitely collect EINs if you are extending credit by selling on Net terms. If the customer's account becomes delinquent, you will need this to exercise your collection muscle (i.e. reporting, etc). 

And you should check the sales tax laws in your state. In my state, sales tax is only collected at the retail level.


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## BoelenPython (Nov 22, 2007)

open a business checking account, you will need the EIN and SS# to open it tho, not just EIN.

you need to get their resell # so that you dont charge them tax, not the EIN.

You can aks for EIN, but it doesnt do you any good for collecting if they dont pay unless you are a big company that pulls and reports business credit. I do both, it took over 6 months to get it setup and you have to have over 1000 customers to be approved.

So, its up to you, but you dont 100% have to get their EIN

good luck


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## nimo05 (Oct 16, 2007)

so I need to get there resellers number in order to not charge them tax!?

So if I get that resellers number and don't charge them tax....then at the end of the year I report it for my own taxes!?
or they are supposed to report It them selves!?

I already opened a business account using my ein number.....

Sorry for all questions....thank you


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## BoelenPython (Nov 22, 2007)

ya you have to have an EIN to open a business checking account.. What bank did you pick? Its pretty easy to get a business credit card too if you have over 680 fico score.

You would need to talk to a local accountant or tax person, I wouldnt want to give you that advice.

You can get free expert advice by finding a tax or accounting guy from you local score.org check them out

good luck


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## wirenut103 (Oct 17, 2007)

The best thing to do is e-mail the IRS and ask them the questions about reporting taxes. Surprisingly, they are quite good at responding with helpful information! Either that or speak with an accountant...but that may cost you unless you already have one you use.


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## martinwoods (Jul 20, 2006)

You do not have to have a tax id number to open a business checking account. i have one with Natl City and only my ss#

Thanks


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## Jeepwidow (Feb 12, 2008)

The IRS offers free "Online Classroom" in dealing with your tax obligations. Go to the Business tab then go to the Starting a Business tab on the left hand side. They do have a lot of information and a LOT of reading. You will find information in regards to dealing with wholesalers. 

Also, go to your county clerk's web site which should help you answer questions.


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## nimo05 (Oct 16, 2007)

do u have a link to the site?

thanx


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## Jeepwidow (Feb 12, 2008)

nimo05 said:


> do u have a link to the site?
> 
> thanx


 
Sorry for the delay. I'll give it a try. Online Classroom

If it doesn't work, go to IRS website and type in "on line classroom for small business" and that shoud link you. 

Hope this helps.
Barbara


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