What makes you think the supplier is trying to dodge taxes? Maybe he just knows he`s not required to provide it. There is no requirement in the Internal Revenue Code or Treasury Regulations that you must have the supplier`s EIN in order to deduct an ordinary, necessary business expense. The only time you need it is if you are required to provide a 1099, and even then you can still deduct the expense even if you fail to file a required 1099.
This post has gotten off track. VirtualCPA`s answer about Sales & Use Tax is correct - you need to check with your state and local agencies on this. Laws are different throughout the country, but typically you will need the license & have to collect or at least pay tax for the sale of goods, supplies, software, etc. Services are often, but not always, exempt from sales tax.
For startsmallbiz ... EIN`s are not widely available, and the IRS is not going to give it to you. You probably don`t need it anyway. To prevent the problem when you DO need one, request a W-9 before you write the check. 1099`s are typically required for services, rents, royalties, non-employee compensation - not for purchased goods. Example, you aren`t required to get an EIN from OfficeMax, and you don`t have to give them a 1099.
You`ve posted this question several times in different threads, and keep suggesting that your supplier is trying to evade taxes. I think you`re probably barking up the wrong tree due to a misinterpretation of when and why a customer needs a suppliers EIN.
A UCC-1 would have nothing to do with this. A UCC-1 is a financing statement used to perfect a security interest in collateral. For example, if you get a loan from your bank and use you inventory as collateral, the bank will probably file a UCC-1. Look one up at random at your Secretary of State`s website - they may have an EIN on it, but I doubt its required.sreys2007-7-23 21:20:25
You may want to check your state banking laws. Commercial financing is a regulated activity. In your state, you quite likely might not be able just "assume" the role of broker. You may need to be duly licensed in order to legally do so.
Jeff`s on the mark as far as having the LLC reimburse you.
However, a multi-member LLC must file a tax return. By default it`s a partnership return, although the LLC can elect to be taxed as C-Corp or S-Corp.
A single-member LLC does not file a separate return unless it has elected to be taxed as corporation.
Scott Reynoldssreys2007-4-12 18:11:1
Tax regs have changed, so make sure you buy the NEW book, and don`t rely only on what you hear in a forum.
The first $5k of startup cost is immediately deductible. The balance would generally be amortized over 15 years, not 5 years.
Street clothing is generally not an allowable deduction. You could deduct it, but you should expect to lose the deduction under audit. And if you itemize it on your return, you might expect a higher possiblity of audit.
That PC is 5-year class life, not 7, and will probably be immediately deducted under IRC section 179 rather than depreciated over 5 years under IRC section 167.
Scott Reynolds, CPA