Business License For Cheaper Leather?

[klint fluitt]

ok I been makin saddles and tack in spare time day workin and riding colts the rest of the time. I was told you can get leather cheaper with a tax Id number or business license. Is this true. I know I'll have to pay unkle sam but I fugured yal woukd know. If so do you talk to the courthouse or where.

[TwinOaks]

You'd go to the local courthouse to file a business. It's cheaper up front because you're buying wholesale, but you still have to pay for it on the back end. Most companies also offer a slightly better base price as well. However, there is a lot more to having a business license than just getting things cheaper. There's a good bit of paper work that HAS to be done, usually on a quarterly basis. If you're after some savings without the hassle, look into some of the memberships offered by several of the suppliers. For example: Tandy offers memberships in two classes, each with an upfront cost, and different amounts of discount. If you're buying large amounts, the membership pays for itself pretty quickly. When I first got into this hobby, I bought a Tandy membership as part of my first order. The discount on the order was more than the membership, so it basically "paid" for itself the first time it was used. Over the course of the next year, I took advantage of the membership and got a LOT more for the money than I would have otherwise.

**Just using Tandy as an example, I don't have any affiliations with them**

[Russ]

In Ohio you get a vendor's license and tax ID number at the county courthouse.

Tandy Leather gives a break when you are licensed, plus then a break when you become a re-seller or something or other, I don't remember the terms. If you want to buy from Weaver Leather, you need an account with a tax ID. Other vendors will have different terms. When Siegel of Calif was open, they didn't care if I was buying with or without a tax ID, the price was the same except for volume orders.

ok I been makin saddles and tack in spare time day workin and riding colts the rest of the time. I was told you can get leather cheaper with a tax Id number or business license. Is this true. I know I'll have to pay unkle sam but I fugured yal woukd know. If so do you talk to the courthouse or where.

[BIGGUNDOCTOR]

Having a resale license allows you to buy without paying sales tax. The tax is paid by the customer on the completed item, or whoever buys the materials from you. Now if you use some the items yourself , you are supposed to pay a use tax on that. It isn't as easy as getting a license, and not paying taxes since Uncle Sam will get you one way or another.

[Willbilly]

I just got my LLC up and running, and while yes techinacly I get a discount because I do not have to pay sales tax when I purchase materials, it is just easier to pay for a membership to tandy or like company. The paperwork needed for a Business is crazy, and not something I recomend just to get cheaper goods, plus the taxes are a pain already, and i have only had the business for a few months.

[artificer13]

I'm with Willbilly and the others. If you're JUST looking for a little cheaper pricing you can always buy memberships/purchasing plans etc. Even the most basic form of business (Sole Proprietorship) will take a fair bit of paperwork in most states.

Unless you're buying tons of material or selling lots of product, you're better off doing the buyer's programs.

[gringobill]

It's already been said, but.....it's one of those "pay me now or pay me later," situations. I've always felt it was opening a can of worms that I haven't wanted to get into yet. As others have said, if you get a tax id/business license you're going to be expected to keep good records and at some point the state and feds are going to expect you to pay sales taxes on everything you've sold. You're going to have to start keeping a set of books. I expect in many of our cases, we are buying enough tools, etc that we can show a loss and not show a profit, so there are no taxes due. However there is a limit on how many years the IRS will allow you to show a loss on a business, it may be 7 years.

It's just not as simple as, setting up a business and getting a tax id and getting to buy things at a discount (most of the time the discount equals the sales tax you'd pay on your supplies,) eventually you're probably going to have to pay the piper.

I have more dealings with taxing entities than I want already so until such time as I get big enough to be forced to jump through all the hoops I'll continue to fly below the radar.

[Billy P]

Springfield Leather Co. also has a wholesale membership that you can buy. My first year was something like $30, and just $15 a year renewal since then. I just renewed and made an order and it well over paid for itself, so the rest of my orders until next August are a savings bonus. They also sell Tandy and a lot of other peoples stuff, just let them know what catalog you want it from. I can't use a tax ID or a business because of being on disability, and I am not able to do as much as I used to do anyway. I think saving is saving so their plan works for me. Billy P

[Johnny B]

Tandy leather has a discount club. I am, I think, am an Elite member. It pays for itself every time I walk into that store.

[Randy Cornelius]

I know some places like Weaver Leather and Ohio Travel bag requires a sales Tax number to buy from them.