Thursday, September 11, 2008

Do I need a Tax ID Number?

This is a question I get a lot. I know many of you are home based businesses just starting out, and want to get started quickly. But, before getting started, actually get yourself set up as a business, so that you can work with the bigger drop shipping companies. Most reputable companies now require that you have a tax id number or business license before they will open an account with you. Many times this requires you to contact the business you want to use, receive their forms via email and then fax them back a copy of your tax id number along with a New Customer Application Form. It varies from business to business as to what will be required.

It is so easy to get a tax id number, there is absolutely no reason I can think of as to why you wouldn't. It makes it much easier to buy from larger companies, and also if you decide to later purchase wholesale, you will already be set up to do so.

I don't know the requirements in every state for getting your tax id number, but I know in the state of Minnesota, you apply right online and you get the number instantly, print it out, and the whole process might take you 10 minutes maximum. So go to your state's website and look into how to get your tax id number. It is well worth your time and it will open many doors for your business.

Til next time,

Linda

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