Do all pro labs require a tax id number? and related ?'s

[sonshine_rae]

**Look for Update on Page 2**

I'm wanting to start printing with a larger pro lab,
but I noticed Millers Lab requires a tax id number, which I have not as yet setup that for my studio.

Currently I use mpix.com the 'little' brother of millers lab, and they give me excellent service.. hence why it seemed natural to just move up to Millers. I'd like the higher service level, and easier uploads, ROES etc.. that a larger lab provides.

Okay here's the next question,
how do you know for sure 'when' and 'why' you would need to setup a tax id? I have a small photography business on the side (my main thing is being a SAHM), so it's not the family's main income (that would be my hubby's job). But it is growing, and needing to be further defined, I'd like to expand things even more next year.

I charge for my time as well as for prints, so does that mean I need to be paying sales tax on the prints?

Thanks for any/all advice,
I am also currently trying to find a CPA to help me out as well.

~Rae~

P.S. I also forgot to ask,
has anyone had difficulty getting a business license within city limits (zoning regulations or other limitations)??

[NC_Photo]

Mpix has ROES.

Although there are some labs that don't require a tab id number. I think CPQ is one of those labs.

Not sure about WHCC, but I think I remember a friend telling me they don't require it. It seems like a hobbyist who wants their personal work printed by professionals wouldn't be using a tax id numbers.

[IndyJeff]

If your set up as a sole propietor you can use your social secuirty number in place of a federal tax ID, which a SSN is really when you get down to it.

On the sales tax issue, if your taking payments for the prints then yes you need to pay sales tax. Now if it is a case where the client goes online and pays soemone else and you are sent your portion of the sale in a monthly check then no, you don't collect sales tax. Be advised that collecting sales tax is a monthly report until you establish that your not doing a certain amount of retail sales and then it becomes quarterly. In the beginning even if you have no sales for that month you will still have to file the report.

[sonshine_rae]

Thanks,
I did manage to find another lab (Nations Photo Lab) that has a easy ROES system (just a java app.) that I'm testing out now.

IndyJeff,
thanks so much for the advice. Just the kind of thing I'm trying to sort out.

[viperx27]

you need to be legal with the gov. period.
you gain much more than you lose by doing so

[Hurricane_777]

I charge for my time as well as for prints, so does that mean I need to be paying sales tax on the prints?



Not only sales tax on the prints, but income tax on your cut as well.

Sounds like a good accountant may be in order. :)

[mdmedicgod]

I'm wanting to start printing with a larger pro lab,
but I noticed Millers Lab requires a tax id number, which I have not as yet setup that for my studio.

Currently I use mpix.com the 'little' brother of millers lab, and they give me excellent service.. hence why it seemed natural to just move up to Millers. I'd like the higher service level, and easier uploads, ROES etc.. that a larger lab provides.

Okay here's the next question,
how do you know for sure 'when' and 'why' you would need to setup a tax id? I have a small photography business on the side (my main thing is being a SAHM), so it's not the family's main income (that would be my hubby's job). But it is growing, and needing to be further defined, I'd like to expand things even more next year.

I charge for my time as well as for prints, so does that mean I need to be paying sales tax on the prints?

Thanks for any/all advice,
I am also currently trying to find a CPA to help me out as well.

~Rae~

P.S. I also forgot to ask,
has anyone had difficulty getting a business license within city limits (zoning regulations or other limitations)??

I use millers and I wasn't required to have a tax ID. Were you opening an open credit account or placing a card on file?

[sonshine_rae]

Please don't misunderstand.. the point of this post IS to find out how to be legal with the government.. NOT to avoid it. As in I'm trying to find out what I need to do.. and if I need to already be doing it.. and also trying to finish orders that my customer's are sending in as I try to figure out how things should be done. This year (I started taking clients in June 07) was sort of a 'test run' of my business, next year I'd really like to launch and expand things, and will need to get all these details worked out by then.

Yes I've pretty much come to the conclusion.. that a CPA to guide me seems to be the only definite answer as to what I need to do.

I wonder if it depends somewhat on what state you live in whether the lab requires a tax ID or not? I didn't see the tax ID field until I entered that I live in Missouri? All I was trying to do was setup an account, I hadn't even gotten to the point of entering a credit card or other payment options.

Well I made an order from Nations Photo Lab (for myself, not a client) we'll see if I like their service or not.. I may be hunting for labs.. or may just turn back to Millers and call their customer service to get it figured out. I love the fact that Mpix and Millers both have locations very close to me and hence priority shipping is often next day delivery!

Thanks all for your help,
~Rae~

[Hurricane_777]

Please don't misunderstand.. the point of this post IS to find out how to be legal with the government.. NOT to avoid it.

I had assumed that when I made may post...sorry if it didn't sound that way. :)

[sonshine_rae]

Not to worry Hurricane, I thought you understood.. it was Viperx27 who seemed to have misunderstood.

[viperx27]

Not to worry Hurricane, I thought you understood.. it was Viperx27 who seemed to have misunderstood.

i didn't misunderstand, I simply stated the facts, both for the OP and for all those hiding in the distance and that will search and find this with similar questions. didn't state that the OP was evading the gov, but rather than finding work arounds for it, its best just to get it over with.

[mdmedicgod]

Please don't misunderstand.. the point of this post IS to find out how to be legal with the government.. NOT to avoid it. As in I'm trying to find out what I need to do.. and if I need to already be doing it.. and also trying to finish orders that my customer's are sending in as I try to figure out how things should be done. This year (I started taking clients in June 07) was sort of a 'test run' of my business, next year I'd really like to launch and expand things, and will need to get all these details worked out by then.

Yes I've pretty much come to the conclusion.. that a CPA to guide me seems to be the only definite answer as to what I need to do.

I wonder if it depends somewhat on what state you live in whether the lab requires a tax ID or not? I didn't see the tax ID field until I entered that I live in Missouri? All I was trying to do was setup an account, I hadn't even gotten to the point of entering a credit card or other payment options.

Well I made an order from Nations Photo Lab (for myself, not a client) we'll see if I like their service or not.. I may be hunting for labs.. or may just turn back to Millers and call their customer service to get it figured out. I love the fact that Mpix and Millers both have locations very close to me and hence priority shipping is often next day delivery!

Thanks all for your help,
~Rae~

If you end up going with millers. They ship fedex overnight for free.. Something to remember. The prints at millers will be slightly higher than those of mpix. However, millers offers so much more than mpix..

[John Mireles]

Your federal tax id number is your social security number. However, if you have a business, I recommend getting a Employer Identification Number which is essentially a business federal tax ID. It's free and can be done online. Should you ever hire employees, you'll use that number for paying employment taxes and Social Security.

You don't need one to be "legal," however in this day and age it's best to keep your SSN private so it's not out there with the potential for getting ripped off. Whenever someone asks for your TIN (tax ID number), you can just give them your EIN.

John

[sonshine_rae]

Okay just a little update for those who might be interested,
I have filed for my DBA, as well as for my EIN.. will do the sales tax part once the DBA is final.

And am currently working with my city trying to find out if I will need a business license or not, it's a very small city and apparently 'does not have any provisions for business licenses as it is a residential area.' So I have to write a letter to the 'Board of Alderman' explaining how my business will impact the surrounding neighborhood, mentioning I have off-street parking, and what hours of operation I will be planning (aka not all hours of the night) etc.

So wish me luck.. that the city is favorable to having a Photography business in their midst....

:) ~Rae~

[notapro]

just as a note... (this is Canadian info) you are only eligible for not paying tax if you are reselling the products. For that reason I chose not to register my vendor permit with the lab and submit applications for refunds to the government every quarter. That way there is no hassle when ordering items that I intend to keep for personal use or portfolio and I don't need two separate accounts.

[tracknut]

So wish me luck.. that the city is favorable to having a Photography business in their midst....


I live in a rather small town too. I was filling the business license form out while sitting in the City Hall and chatting with the woman there processing the forms. When I got to "type of business?", for some reason I asked her whether there were specific businesses that weren't allowed. She said the only business that would be denied would be gun sales. I said "so, if I write down Brothel, it's ok?". She smiled and said, yes, as far as she knew. :)

I can't imagine a photography business having any trouble getting licensed. Good luck.

Dave

[sonshine_rae]

Okay most of you've probably forgotten about me....

but I just thought I'd give a update.. since I'm sooo happy right now.. that I just have to share with someone LOL!

I mailed a letter to our city's 'board of alderman' and waited most of a month (till I knew for sure they'd had a business meeting), to call and check with them.

This is the reply I got via phone this afternoon.
I called the 'City Hall' :).

I started out by saying I was calling to find out how I would get an answer to a letter I had sent to the board of alderman (keep in mind this is a VERY small town).

The immediate response was 'Are you Rae G*******' ? I said yes, then she told me they had discussed my business and this was the response.

Our city currently has no provisions for small businesses within it's midst, and therefore has no permits or licenses required, and no restrictions on holding a business in the city limits. As long as we don't cause a parking problem, we are (as she said) 'good to go!'

Yay....... one more huge hurdle taken care of.

And to update otherwise on my business.. in the interim time whilst I awaited the city's answer. I purchased and setup my business DBA name, paid the bond and setup my Retail Sales tax license, re-designed my site and business cards to better reflect where I want this business to go (plus upped my prices to a more reasonable amount). And well a whole bunch of stuff like that.

I'm just about ready to kick off RG Photography (my business) now for 2008 ..

Oh and as a cool aside.. we decided to replace the flooring in our home including the studio area.. so it will soon have floating hardwood floors :D! And I'll get to re-arrange the studio area to better reflect my business needs this year.. instead of it being mainly a family room.

The funny part of this..... is I've done alllllllllll this JUST so I can fill a creative hole in my life and make some money on the side.. I will only be accepting 1-3 studio sessions a week (I'm also a full-time SAHM). LOL :)

~Rae~

[airfrogusmc]

Good luck and CONGRATS!!!! I wish you many years of happiness and success.

[liza]

Rae,

Another lab you might consider is Candid 2000. They're based in Missouri, do a good job with printing, have great customer service, and offer some nice presentation options for orders.

And I know exactly what you're going through in terms of setting up an actual studio. I'm doing the same thing, and there are all sorts of little things to address in the process. Good luck to you.