We are proud to announce our NEW community destination. Engage with resident experts and fellow entrepreneurs, and learn everything you need to start your business. Check out the new home of StartupNation Community at startupnation.mn.co

Tax id and re-seller id - any difference

tpcptpcp subscriber Posts: 4
edited September 2007 in Business Planning
Is there a difference between the two?


  • ObsidianLaunchObsidianLaunch subscriber Posts: 7
    Correcto Mundo - Leslie is spot on!
  • robertjrobertj subscriber Posts: 0 Member
  • tpcptpcp subscriber Posts: 4
    Thank you everyone for your answer.
    So if someone presented me with a tax id number/EIN then they are not really entitled to receive re-seller pricing. All the tax id number is is really jsut proof that they have a business and that you can offer them business discounts if you wanted to.
    The re-seller id is the important one that I should look out for which is the go ahead to provide super cheap re-seller pricing.
    Also, grillcharmer, who did your logo design? I like it a lot
  • robertjrobertj subscriber Posts: 0 Member
    The federal id number is for identification of "tax" transactions such as payments of the quarterly employee withholding and FICA items (as well as federal corporate income taxes).
    The state resale permit (license, etc) entitles the holder to purchase items (that are for resale) and not pay sales tax on such purchases. They are then required to "collect" sales tax on said items when the "resell" them- and of course send those $$ to the state.
    Whether you provide "super" cheap pricing is your choice - and would (I think)  depend on more factors than just having a resale permit.
  • InvestorFundingInvestorFunding subscriber Posts: 0
    ...Whether you provide "super" cheap pricing is your choice - and would (I think)  depend on more factors than just having a resale permit.I agree with Robert here. Your pricing decisions should reflect more on your relationship factors with the person/entity you are selling to. I for one give better prices to my clients that are members of societies I am involved with. Example: My local Chamber of Commerce. The Only ID# I look for is the local state resale or business license. And, then only if they are asking to not pay tax on the product or service. I do this because my state NM. requires paperwork to prove the item was sold for resale.If I am extending a line of credit to a client then the EIN/TIN/SSN are what I look for. Some businesses that are "sole proprietor" the SSN may be what they use for business ID.
  • GrillCharmerGrillCharmer subscriber Posts: 7
    Thanks tpcp! 
    I work w/ a gal over there that does great work.  If you want her info, PM me.GrillCharmer2007-9-2 9:11:52
  • avengeravenger subscriber Posts: 0
    Leslie is on Zee money!  I don`t need to add my two cents.  *laugh* 
Sign In or Register to comment.