Evil Tax Permit Info For THE FUTURE. (READ FIRST POST)

[Reyna]

First off, apologies for the massive amount of info I'm about to post, but I thought it important enough to share. I emailed the Texas state tax help the following --

Hello!

I'm attending two art shows this summer where I'll be selling my artwork
and other such crafts. The requirement for the show is to have a Tax ID
number, which I have, but there has been made mention of a "doing
business as" names. The following is the information I was provided with
on the message board regarding DBA names.


Q: What is a DBA name?
A: DBA stands for "doing business as," and is basically your company
name. Some examples are Pan-Gaia, PinkFairyWand Creations, Raging
Seagulls Studios, etc. If you want a special name such as this, you must
visit your COUNTY court house and get one, and it does cost money, about
10-20 bucks depending on your county. If your company name includes your
last name, such as if my studio name was instead Snail Art by Jacquelyn
Stoner, you do not need to register it or pay money, and it's good to
go.


I didn't know what DBA was until reading this and I've my tax ID
registered as 'Twilight Designs' should I change it to 'Twilight Designs
by Brittany Kuhlman' or something similarly to avoid any sort of
unintentional trouble since at the time when I registered last year (I
registered for the sole purpose of attending the two aforementioned art
shows but ended up being unable to participate due to time constraints)
for my number I didn't have this information?

In the event I do need to change it I would prefer it be, Twilight
Designs by B.R.Kuhlman if at all possible.

And another question, I have a friend that is going to be joining me at
this show from out of state. How would she go about obtaining a
temporary tax ID number or something similar in that nature?

Good afternoon, thank you for contacting us at tax.help.

The Assumed Name Certificates (Texas does not use the term DBA) are used
to declare you as an individual are using the Assumed Name to do
business.  Generally, your bank will require a copy of your Assumed Name
Certificate if you want to deposit checks written to your company name
in a bank account in your name (or to create a bank account in the
business name).  The Assumed Name Certificate is filed with your county
clerk's office and the name on the sales tax permit should match the
Assumed Name.  However, you are not required to get an Assumed Name
Certificate to have a sales tax permit.

I will be glad to change the business name if you want me to change it
on your sales tax permit, just let me know.

Your friend will need to apply for a sales tax permit if she is selling
taxable items in Texas.  However, we do not have a "temporary tax
permit".  The reason for this is the tax rule 3.286 section (b)(2) which
states in part:

(b) Permits required.

 (1) Each seller must apply to the comptroller and obtain a tax permit
for each place of business.

 (2) Each out-of-state seller who is engaged in business in this state
must apply to the comptroller and obtain a tax permit. An out-of-state
seller who has been engaged in business in Texas continues to be
responsible for collection of Texas use tax on sales made into Texas for
12 months after the seller ceases to be engaged in business in Texas.

Your friend will be required to keep the permit and file tax reports
each filing period even if friend has no sales into Texas until your
friend has been out of the state for 12 months.  Then your friend can
close their sales tax permit.  If your friend receives orders that are
shipped into Texas in the next 12 months, they will be required to
collect sales tax on those sales and remit the sales tax to our office.

Your friend can apply online with our Texas Online Tax Registration
Application at:

http://www.window.state.tx.us/taxpermit/

Your friend can also apply with a paper application using form Ap-201.
The application is available on our Web site at:

http://www.window.state.tx.us/taxinfo/taxforms/01-forms.html

The sales tax returns as well as the Texas Resale Certificate
01-339(front) forms are also on that Web site.  The Texas Resale
Certificate is the form that you would issue to your vendors in order to
buy supplies tax-free that you would resale to your customers.

We can also mail an application package for the sales tax permit. If
your friend would prefer we mail it, just respond with the name and
mailing address where they want the package mailed.

If the application is mailed to us the process usually takes 3-4 weeks
from the time we receive the application.  If the application is taken
in to one of our field offices they can process the application and
issue the Texas sales and use tax permit number that day.  Then your
friend will receive the actual permit in the mail in 7-10 business days.
We have a listing of our field offices on our Web site at:

http://www.window.state.tx.us/taxinfo/fieldtoll.html#field

Complete sales tax information, including rules, statutes, publications,
and frequently asked questions are available at:

http://window.state.tx.us/taxinfo/sales/

I know some of this has already been addressed on the front page, and it's a LOT of info, but I figured I'd leave something out or say it wrong if I tried to rephrase any of it. Just trying to help out!  ^__^

[Lazy_Dragon]

ok, to answer the probable reason for each artist to have their own number.

Liability of taxes by Akon.  Akon sell tables to individuals, thus each individual needs their own number. 
If one person buys 4 tables and allows people to operate under their number, then he would be responsible for all taxes owed.  Granted this is subletting and not sure if that is allowed.

If the tax office asks Akon for a list of artists/dealers selling merchandise, the list would be given of all the names and adresses as I am pretty sure Akon would not pay the taxes owed.    If the taxes are not paid, then the tax office will send you the estimated tax bill.  This is done at other large conventions throughout the country.

As stated before, call the office, use the fax and get your number.
 
Steven can post his email address and you can scan and pdf your tax id or just send him the number.   That is up to him.  Granted he might have a list of certified people and the rest will have to get it quickly.

Remember these new changes are from Pheonix Entertainment not him.

[Spizzy]

 The first post has been updated yet agan with more info and new links, so take a gander at it if you still have questions. Like I said earlier, I am willing to help with some questions--I did this in person so there are some things I can help you out with. You can IM me, I have the three main ones so I'm easy to get in touch with

Just for anyone that has yet to fill it out though: That box that says "please list any faires/events you plan on selling at" ? Just mark "Not yet known" in it rather than try to predict all the conventions you plan on attending--I was afraid of having to do that list and then that dude helping me just marked that in it, mumbling "They don't know~! Why is this still on here~?" XD

[Hastur]

Mine was on my paperwork and I e-mailed it to him. 

I would like to point out that having one, as was said before, is a very useful thing.  I can get wholesale prices on stuff, don't always pay sales tax on certain items (since I will be collecting the tax), and can show it at any event that I am at.  I keep a copy of it in my "office in a bag".