# Being prepared: Sales tax #, Ein, LLC, etc



## comma (Oct 10, 2011)

I am still not off the ground at all with my business, but I am trying to be prepared. Right off the bat, what should have or start applying for? I live in NY state. If I have an online store, should I be charging sales tax to everyone or just to NY customers? Also, I need a State Sales Tax Number/certificate/OPAL correct?
On the tax ide of things, is there anything else I need or should know about?

As far as an EIN goes, I don't believe I need one as of now. I am working alone and do not have a corporation. Let me know if I am wrong there.

Also, once I am up and running I would like to get an LLC for tax write-off reasons, among other. At that point I am assuming I will need a EIN...is that correct??

I am just trying to be prepared, and I would really appreciate any input! Thank so much


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## greyhorsewoman (Jul 19, 2007)

You can get a sales tax # from the state of NY... you only need to collect sales tax on qualified sales in your state. 
Search Results: sales tax license

*"Sales tax* applies to retail sales of certain tangible personal property and services. *Use tax* applies if you buy tangible personal property and services outside the state and use it within New York State."



> In New York there's no sales tax on clothes and footwear costing $110 or less. There is sales tax charged on clothes and footwear costing more than $110.


You can start your business as a sole proprietor. Whether or not you need to become an LLC depends on several variables better answered by an accountant.


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## comma (Oct 10, 2011)

Thanks for the reply!
As for that quote, I know that I pay sales tax on clothes and shoes under $110...so I'm not sure exactly what that means.

So for now, for the near future, a sales tax # is all I should need and a good place to start?


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## comma (Oct 10, 2011)

For the tax # can I use my name for the legal name even though my actual store would be under a different name? (haven't established that yet)


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## DigitalInkArts (Jul 20, 2011)

I know this is an older post. But I too am looking in to this now. Being in NYS and sales on shirts are becoming more steady for me. I have to start looking in to the sales tax. 

Changes in sales tax clothing exemption effective April 1, 2012

This PDF is confusing to me. It says per item. Does that mean I need to charge tax? I have no shirts that cost 110.00 each.

http://www.tax.ny.gov/pdf/memos/sales/m12_3s.pdf


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## MarStephenson761 (Sep 19, 2011)

DJ, this is a great question and a pretty common one. In some cases the sales tax laws are just too badly worded and can really bite you in the end (pun intended). 

Best to consult a local pro rather than all of us lurkers with a lot of experience that may not apply.


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## Rusty44 (Apr 28, 2008)

You may need an occupational license for your city / county.


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## DigitalInkArts (Jul 20, 2011)

I have done some research today. I also went to a buddy who has had shirts made in the past month and past year from 2 local companies. He gave me the receipts. After I told him I could beat the price, I then looked at how they charged him.

In New York State they have re applied the clothing law that states, There is no tax on clothing under $110.00. This was reapplied in April 2012. It was also a law ( that I understand)that went in effect to help School clothing shoppers.

The tax on the receipt from two different screen printing shops DO NOT reflect this law. My friend only purchases 14 shirts at a time. He was charged 4 percent tax on the blanks. By both companies. Last year and the shirts he had printed last month.

New York State tax is 4% on clothing, Then 4% tax coming from my county making it 8% 
So now my question. Why not charge 8% ? 
Doesn't the county tax apply toward a business?


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## nypdofficer1 (Feb 19, 2012)

The no sales tax on clothing only applies in NYC not NYS. Only the five boroughs, (Manhattan, Bronx, Queens, Brooklyn and Staten Island). I work in the city but live outside of it. I always prefer to shop for clothes in the city for that reason.


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## DigitalInkArts (Jul 20, 2011)

Geez. now that information was not present in what I read. So basically, I just need to charge tax! lol 
I will make sure I speak with someone soon about this so I dont get in a switch down the road. But as for the last few jobs I just did. I guess they got a break.
maybe I better go ahead and pay the taxes on those jobs and call it lesson half learned!

I am still confused as to why my buddy was charged only 4% then and not 8? I am in NYS not NYC.


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## nypdofficer1 (Feb 19, 2012)

Each county falls under a different tax bracket. If you look under the nys business taxes they there is a list of the tax bracket you fall under. Where I am, it is 8.65


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## DigitalInkArts (Jul 20, 2011)

Thanks for helping out. I dont mean to sound clueless. Its just that I am! I keep reading and keep getting more confused.


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## nypdofficer1 (Feb 19, 2012)

Don't worry. That's what this forum is for. Good luck!


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