Employee ID # and Tax permits

[PotteryLodge]

I am applying for my employee ID # as a first step to attending craft shows. I also will need to get my tax license afterwards. My question is..

I have a friend who is wanting to sell with me at the craft shows. I don't really mind adding her to the tax license, but during the process am I asked 'sole owner' or 'partnership'. I am not sure which one to choose. My friend is probably not going to be able to attending every show I go to so I don't no if I should choose 'partnership' or not. If I do..will she need her own employee ID# or can she use mine?

[LaGlasSea]

Why did you need an employee number? I have my business ID number is that the same thing? Just curious. I went with sole even though my husband is onmost of the business paper work.

[Former_Member]

I believe she will have to apply her own since you guys are not running the same business.

[PotteryLodge]

@Linda

I'm really not sure what I need.. : )

I think a business ID is the same as an employee number though. Do you sell at shows? Im trying to make this as simple as possible. Could I just file as a sole owner and just let my friend keep her profits for the day?

@canndypan This is all so new to me. We are planning on using the same booth at the craft fair and using the same name "littlehouseoflove" as our store front.

[TheEnchantedWren]

I have a tax number. I would suggest your friend get her own, just to keep things clear.

Do you mean an EIN from the IRS? We have one because our business is a partnership.

[TangledUpLife]

As a sole proprietor you probably don't need an EIN (depending on your state) but it won't hurt you to get one. It's up to you.

This is a bigger decision than just this show. If you call it a partnership you are saying that she is your PARTNER in your business, which will include her business. That gives each of you the benefits and liabilities of being partners. If you have no partnership agreement defined, it probably will mean you two are 50/50.

I would recommend you each file separately, if only because it will be easier on your taxes. Otherwise, you can consider her an employee for the show or an independent contractor, but that will still cause tax issues. Check out your seceratary of state's website. That will usually have all the information you need for small business requirements

[PotteryLodge]

@tangled art- thank you so much. I will check out the Secretary of State site and do a little more research. Just wanted to keep this as simple as possible and not cause conflict between our friendship so I think filing separate may be the way to go.