Have Tax Questions? Ask a Tax Expert for Answers ASAP
Hello and thanks for trusting me to help you today. I am a tax adviser with over 15 years of experience.You are not required to have the Federal EIN and you can use your SSN on your Schedule C. If you wish to obtain a Federal EIN you can go ahead and obtain it now.
You would charge sales tax on the cost of the finished item in whole.
Minnesota has a publication for sales tax which is easy to read and you would most likely benefit from having it in yoru files:http://www.revenue.state.mn.us/Forms_and_Instructions/sales_tax_booklet.pdf
Here is the link to the Federal EIN pagehttp://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Apply-for-an-Employer-Identification-Number-(EIN)-OnlineYou may decide to go ahead and apply
Starting a new business is an exciting venture, I wish you all the best.
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Did you have any other questions about your new business?
What is the sales tax that I charge to customers?
Also, I paid $30,000 for the quilting machine. Can I deduct that on my personal tax return as a deduction?
Minnesota has a 6.875 percent generalsalestax rate.(The rate increased from 6.5 percentto 6.875 percent, effective July 1, 2009.)
The machine will be depreciated and you will get a percentage each year for it's life
Great. Besides that 6.875% are there local taxes a need to charge for? How do I find that out?
Let me get you the calculator.................
Thanks for all your help - you answered all my questions.