| What is the difference between an EIN and a Resale Tax ID?

What is the difference between an EIN and a Resale Tax ID?

Susan S asked:


I want to open a web store and applied at the IRS website for an EIN. Is this all I will need? Is the EIN the same as the RTI? I live in Texas but my sales will be internet only.

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Comments

2 Responses to “What is the difference between an EIN and a Resale Tax ID?”

  1. Doctor Deth on May 19th, 2009 12:25 pm

    sales tax is state related - you need to open a Texas sales tax account

    sales taxes have nothing to do with a Federal ID number -
    If you are a one person business, and you will nOT be hiring any employees - you don;t even need a Federal EIN

  2. Becky G on May 19th, 2009 3:19 pm

    An EIN is a federal tax ID number used instead of your social security number if you are incorporated.
    A resale tax ID is connected to your state. It allows you to buy merchandise that is going to be resold without paying tax. The one who buys from you pays the tax.