Newbie tax questions
Hi! My wife and I are considering starting a business on the internet - without going into details, it will be fairly standard - we`ll buy "stuff" bulk from suppliers and resell it in an online store front. The problem is that neither of us know diddly about this process. I know we have a lot of reading to do, but I`m wondering if someone can answer a few basic questions we have about taxes?1) I think we`d probably register the business as a sole-proprietorship. The question is, in whose name should it be registered? We will both be working on the business - I will be working on the website at night and she will be packing boxes and managing orders during the day. Right now she is a stay at home mom - I`m concerned that if we list her as the sole proprietor, then I won`t be able to claim her as a dependent on taxes anymore. Is this true? We don`t really expect to sell much volume anyway - this will be supplemental income - so her "income" from the business could very well be under the $4,000 personal exemption anyway, if that matters.2) Some of our potential suppliers are requesting a tax ID number before they will send us bulk shipments. Is this the same thing as an EIN and if so, what do they need this for? Is this so that they don`t charge us sales tax for anything we`re buying for inventory?Sorry if these are dumb questions, but we`re very new to this and, well, `ya gotta start somewhere.Thanks!-Diggity
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