sales tax in stores?

[Anthony.Luciano]

i was just curious about this. why when i go to my lfs i dont get charged tax no matter what i buy, live stuff or dry goods, yet if i go to petco, petland or the freshwater fish store up the block i get charged for everything?

 

[disc1]

A lot of boutique type shops will include sales tax in their prices rather than figure it at the register.

 

[Anthony.Luciano]

ohh i didn't even think of that, thanks. also if you could answer this one for me to. i was thinking of aqua-culturing corals at home in like a frag tank and selling them like a small business just for fun but do i need to get a sales tax license or any nonsense like that or is it just counted as like a private home sale, just like 1 long tank full of frags thats all i want.

A lot of boutique type shops will include sales tax in their prices rather than figure it at the register.

 

[dlp211]

Anthony,

You should get a business license, and should collect sales tax as well as pay the appropriate income/corporate taxes.

That being said, you probably aren't going to pop up on the Governments radar and could get away with out doing this legal, but if you want to do it legit, then the above is the appropriate way of going about this.

And if you pay the state sales tax, make sure you pay the Fed the income tax, otherwise you are just going to get audited.

 

[Anthony.Luciano]

im only 15, can i even do that stuff. i was just thinking like a 50 gallon long shallow tank and sell some coral that i frag from my main tank. like what are the advantages to a business license and do i need to pay for it and can i just count this as like a private sale and can i even get one at 15 years old. ill be 16 in july

Anthony,

You should get a business license, and should collect sales tax as well as pay the appropriate income/corporate taxes.

That being said, you probably aren't going to pop up on the Governments radar and could get away with out doing this legal, but if you want to do it legit, then the above is the appropriate way of going about this.

And if you pay the state sales tax, make sure you pay the Fed the income tax, otherwise you are just going to get audited.

 

[OregonReefer]

Actually in most states what you are talking about would be classified as a hobby.. as long as you're not trying to write off the cost of equipment, electricity, advertising and real estate anyway... Once you cross the "I'm going to TRY to make a profit" line it's no longer a hobby and you need to start declaring that income and in some (most) states charging sales tax

That said.. I'm just a small business owner in a sales tax free state

Some people buy and sell at Garage sales as a hobby... In your state, when you go to a garage sale, do you have to pay sales tax?

If the answer is no then you probably don't have anything to worry about

 

[Anthony.Luciano]

well yes the whole point of it is to be a fun way to make profit but im not planning to write anything off its just like you said doing it as a hobby i just want to keep the money i make. and i live in new york and i dont pay tax at garage sales.

Actually in most states what you are talking about would be classified as a hobby.. as long as you're not trying to write off the cost of equipment, electricity, advertising and real estate anyway... Once you cross the "I'm going to TRY to make a profit" line it's no longer a hobby and you need to start declaring that income and in some (most) states charging sales tax

That said.. I'm just a small business owner in a sales tax free state

Some people buy and sell at Garage sales as a hobby... In your state, when you go to a garage sale, do you have to pay sales tax?

If the answer is no then you probably don't have anything to worry about

 

[Anthony.Luciano]

oh and this might entertain you lol its funny because i have these huge dreams yet ive had a saltwater tank since november 2010 with leds i made and everything and i only have 2 corals. a zoa colony and a 1 head frag of torch, but thats about to change because im finished with my fish list except for 2 which i dont want right away and are easy to get but now its all about stocking coral and building up a real reef. i have like the biggest coral vendor in nyc just a couple of blocks from my house so hopefully i can stock up from him. hes got it in the basement of his house with like rimless coral tanks just packed with frags its amazing its like a factory down there and thats what i someday plan but for now i just want a little frag selling business just to get some extra money to go towards my main tank. i make enough with the job i do now but i dont know just the idea of being an entrepreneur and selling coral is what i really want.

 

[karsseboom]

we dont have sale tax here in oregon...lol

 

[GPB]

If the LFS has a business license they have to collect sales tax. They may be just including it in their selling prices. However, most businesses add it on separately. I think your LFS needs an acountant.

 

[Anthony.Luciano]

wait is a business license the same as a sales tax permit because on the new york state permit website i went through all the steps on that program they have of setting up a new business and it says the only thing i need is a sales tax permit and and EIN number, i can get both of those but the business license i see other websites selling. are they the same or whats the point of both if for the business license you just put your info down and your tax id number? ive been researching more and i would like to set up a system and buy corals wholesale and for this i need a business license but why wouldn't the tax id number be sufficient?

 

[Chris27]

You are 15, and want to sell some frags.....have at it bud, don't worry about the lawyer stuff!

 

[Anthony.Luciano]

haha thanks. i would love if we can have a world like that but unfortunately the wholesalers require this to buy from them thats why i was asking all these questions lol. i would've just greq coral and fragged it for sale but i would be spending more money on the system because of how slow everything grows so there would be no money in doing that, thats why i need the wholesaler.

You are 15, and want to sell some frags.....have at it bud, don't worry about the lawyer stuff!

 

[ludiNano]

Don't worry about tax permits licenses. Just sell,your frag I doubt much profit will be made when u figure how much the coral original cost will be, the cost to of equipment to run tank upkeep it. But it is nice to get some money back.

 

[dlp211]

Anthony,

The sales tax permit, and business license are two different things. You ask why are they different. Well so more people can get paid, that's the very layman answer.

Anyway, it might be financially beneficial to do the business. Since it will be a sole proprietorship and you will most likely be operating at a loss, and you are going to do it either way, you will be able to write off all your losses, expenses, and depreciation of equipment on your taxes.

 

[Anthony.Luciano]

ok thanks. yes and to start off just to see how it goes before i build a system, i want to just order large amounts and pack up my 125 then just sell it all that way theres nothing else i have to buy other then stuff i would normally use to keep the tank i have right now. i only have 2 corals in the tank now so to start off it would be cool have a tank just packed with coral and selling it then that way the tank keeps changing and never gets boring but once i make enough money from that ill build my own system. if i told my dad about this he would give me the money to build a legit store or something but then i feel bad because i know how much electricity it would use and stuff for something im not ready for thats why i would like to just start small from my current tank. im going to call up a wholesaler now and tell them that nys says i only need a tax id and see if they take that excuse otherwise ill just buy the business license or resellers permit.

Anthony,

The sales tax permit, and business license are two different things. You ask why are they different. Well so more people can get paid, that's the very layman answer.

Anyway, it might be financially beneficial to do the business. Since it will be a sole proprietorship and you will most likely be operating at a loss, and you are going to do it either way, you will be able to write off all your losses and depreciation of equipment on your taxes.

 

[username in use]

You should really try and maintain a tank for a while before stocking it full of adult colonies just to sell it and start again and maybe start a store at some point.

If you want to save money on corals, join your local club, there are a couple in your area.

 

[Anthony.Luciano]

i was banned from it for no reason and so was my friend. we didn't do anything wrong we had alot of friends on the website. personally i think the admin was just jealous that 2 young kids can afford stuff that he had to work years to get. because there was no reason given of why he banned us and he doesn't respond to any emails. i even offered the guy money and he said he would call the police for harassment. i would LOVE to mention the name but i dont think im allowed to. if i am please tell me i would put the name of that place in the biggest font possible.

You should really try and maintain a tank for a while before stocking it full of adult colonies just to sell it and start again and maybe start a store at some point.

If you want to save money on corals, join your local club, there are a couple in your area.

 

[username in use]

Well don't bash anyone, that doesn't make you look good either.


there are local forums on here, all the way at the bottom of the forum lists there are the club forums.

 

[Anthony.Luciano]

the one on here you need to pay monthly for and i don't really feel comfortable going to because i would be the only kid there. i would go if my friend went but he didn't want to when i asked him. and sorry if i bashed it just brought up memories of when i was soo mad i couldn't get over it for weeks because it was my only source of getting cheap corals since its local. on here is good but its harder to find people locally and the lfs doesn't carry a big selection. thats also why i want this license so i can get all the coral i need and sell it and buy some from myself and not have to go through anyone.

Well don't bash anyone, that doesn't make you look good either.


there are local forums on here, all the way at the bottom of the forum lists there are the club forums.