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Sales Tax

  • EIN for S-Corporation: When and Why You Need One

    • May 18, 2026
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    • Category: EIN for Corporation
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    Key Takeaways An S-corporation needs an EIN to file federal payroll and income tax forms, open business bank accounts, and run compliant payroll. You must have an EIN before filing IRS Form 2553 to elect S-corp status and before issuing Forms W-2 or 1099s under the corporation’s tax identity. Getting a new EIN is required

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  • Do You Need a New EIN When Converting from Sole Proprietorship to LLC?

    • May 18, 2026
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    • Category: EIN
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    Key Takeaways Most conversions from a sole proprietorship to an LLC require a new EIN because the owner is creating a new legal entity. If you keep operating as a single-member LLC with no employees and no excise tax filings, you may be able to use your existing EIN in limited cases. Changing your business

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  • EIN for Foreign-Owned LLC: How Non-US Owners Apply

    • May 17, 2026
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    • Category: EIN for LLC
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    Key Takeaways Foreign-owned LLCs can get an EIN without an SSN/ITIN by applying with IRS Form SS-4 and using the “foreign” SSN/ITIN option. Most foreign-owned single-member LLCs must file Form 5472 and a pro forma Form 1120 by the April 15 deadline (or the business’s tax-year due date). An EIN is often required to open

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  • Can a Sole Proprietor Use Their SSN Instead of an EIN?

    • May 17, 2026
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    • Category: EIN for Sole Proprietor
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    Key Takeaways A sole proprietor can often use an SSN, but an EIN is required in common situations like hiring employees, certain tax filings, or opening some business accounts. Using an EIN can reduce how often you share your SSN on W-9s, invoices, and vendor forms—helpful for privacy and recordkeeping. An EIN does not replace

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  • EIN Application Process for Single-Member LLC vs Multi-Member LLC

    • May 17, 2026
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    • Category: EIN for LLC
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    Key Takeaways Single-member LLCs usually use the owner’s SSN/ITIN for some tasks, but an EIN is often required for payroll, excise taxes, certain banks, and elections. Multi-member LLCs generally need an EIN because they default to partnership tax treatment and file separate federal returns. Your LLC’s IRS “responsible party” must have an SSN, ITIN, or

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  • How Long Does It Take to Get an EIN for an LLC in 2026

    • May 17, 2026
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    • Category: EIN for LLC
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    Key Takeaways In 2026, an EIN for an LLC can be issued immediately in the best-case scenario, but processing time varies based on how you apply and whether your information matches IRS records. Most delays come from mismatched names/SSNs, using the wrong “responsible party,” selecting the wrong LLC tax classification, or applying before the LLC

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  • Drop Shipping vs Wholesale: Sales Tax Differences for Online Sellers

    • May 16, 2026
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    • Category: Drop Shipping Tax
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    Key Takeaways Drop shipping often creates sales tax duties in multiple states because the seller, supplier, and customer can be in different jurisdictions. Wholesale sales can be tax-free when you collect the right resale certificate; drop shipping can still be taxable if documents don’t match the shipping state rules. In many states, the shipping destination

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  • Drop Shipping from China to US Customers: Sales Tax Requirements Explained

    • May 16, 2026
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    • Category: Drop Shipping Tax
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    Key Takeaways Drop shipping from China to U.S. customers can trigger U.S. sales tax when you have sales tax nexus (physical or economic) in a state. Most states use an economic nexus threshold of $100,000 in sales and/or 200 separate transactions in the current or prior calendar year. Marketplace sales (Amazon, eBay, Walmart Marketplace, Etsy)

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  • How to Use Resale Certificates with Drop Shipping Suppliers in 2026

    • May 16, 2026
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    • Category: Resale Certificate
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    Key Takeaways Use a resale certificate only when you are buying items strictly for resale; it does not cover items you use, sample, or consume. In drop shipping, “who charges tax” depends on where the customer receives the item and which party (you or the supplier) is the retailer of record. Give suppliers complete, state-appropriate

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  • Sales Tax Rules for Drop Shippers Using Suppliers in Different States

    • May 16, 2026
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    • Category: Drop Shipping Tax
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    Key Takeaways Drop shippers can owe sales tax in multiple states based on where they have nexus (economic, physical, or marketplace) and where the customer receives the product. Resale and exemption certificates must match the role you’re playing (retailer vs. wholesaler) and the state where the sale is sourced—mismatches trigger tax being charged by the

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