Where To Begin - Make The Government Happy

Every online education center that teaches dropshipping should help you get your barrings. So if you don't know how to use a computer, or anything about retail sales. You should get acquainted with each. The law of supply & demand will apply to your business, learn to do online queries (another term we will go over later) & how to find solutions when various problems arise.

We will offer some blog posts about using a computer, but in this post we will focus on setting up your own business tax number. As most people are aware, you can't do almost any business transaction unless the government get's their influence (sometimes called fingers) into personal finances. In many states it is much worse for businesses.

Many onlipne businesses will not need to pay taxes when they run a dropship website. This is due to the fact that there is no way to represent tax payers outside of your state lines. So no taxes are charged. There are some states that do not charge tax on sales, but your would need to have a representative (called a Registered Agent) in that state to collect your mail & file any paperwork that was needed. This can be costly depending on what group you decide to use. Usually there will be monthly fees.

Every company that you work with will eventually tell you to work with a tax professional. If you are called by a tax representative, you will want to get 2-3 other quotes about setting up a business from a local CPA or a local legal representative. In fact it will do you good to remember that every time you are approached about some companies services, you should shop around. See what is out there for similar prices or just compare the quality. Some groups will give you a great price, but terrible service. If you appreciate very little support for a cheap price, then they are all around out there. If you really need a hands on approach from a company offering services to your new company you will want to pay more & expect more. We will cover this in other posts.

There are many people who just do not have enough startup capital to use a tax professional immediately. So they choose to head directly to the IRS themselves www.irs.gov & do a search for an "EIN Application" When you fill out the online EIN Application, this gives you a Tax ID number within 10-15 minutes that most dropshippers will work with. Though this will not track your state taxes, nor will it hel with asset protection. All taxes & liabilities will flow through to the individual. So if you choose to go to the IRS yourself, you will want to contact a tax professional as soon as it is financially possible.