When ordering inventory for your small business, do you pay tax?

Fundamentally when product changes hands the state wants a cut. what it boils down to is that the money the seller receives is taxed. the gov wants 7$ for every 100 anyone makes on sales, but as we all know when we buy a couch or something the we have to pay that tax so the seller doesn't have to take it out of their gross profit. the same is true fro you when you sell products to your customers. it just all depends on how you want to pass on that cost. you can either say "that will be $14 and $14.98 after tax" or you can say "that will be $14" in either scenario you have to send the gov 88 cents for the $14 transaction. you cannot however tell your customers that it will be $14.98 without telling them that the 98 cents is for tax, because then it's a transaction of 14.98 instead of just 14 and the tax would be 1.04 and not 98 cents (if sales tax is 7%). that's why every receipt you get has the tax itemized on it to prove that the customer payed the tax already. if you have any questions about the math just email me.

If a business buys product for resale, the person can get a resellers certificate from the state and not pay the tax when they buy the items. But talk to your corporate office - if they are handling the sales tax filing for you now, they are likely just reporting all of your purchases and probably aren't able to keep track of splitting it out, so you'd just pay the tax when you buy, and in essence get reimbursed by your buyer when you sell the items.

if your corporate office is paying the sales tax under their number and they pay on all the purchases you make, that would indicate that the inventory you want to maintain will be paid by the corporate office

without your sales tax ID from your state you would not be able to file state sales tax and pay it

PAID, not payed.

Businesses should have tax-exempt certificates to use when buying inventory. Without it you must pay tax.

You can get a paypal card. You use it just like you would a debit card, except it withdraws money from your paypal account rather than your bank account.