Starting a(n) Automotive Sales Business Licenses & Tax IDs

Hi, I'm E And L Auto Automotive Sales Automotive sales business licenses and wholesale permit in Columbus, MS🚗MS · WHOLESALE

Columbus, MS How do I get an automotive sales business in Columbus, MS licensed?

Rows of polished cars glint in the sun, a salesman jingles keys and a customer walks around a bumper with a smile.

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Automotive Sales

You can choose to be a(n) Automotive Sales :

Sole Proprietor,
LLC,
Corporation or
Partnership.
After you decide and select your business entity, you need licensing.

✔ Biz License

Columbus Business Tax Registration ( Automotive SalesBusiness License)
All businesses including home, online or mobile BUSINESS need a BUSINESS license because they are BUSINESSES.

✔ DBA Biz Name

A(n) Automotive Sales business using a DBA Doing Business As Trade Name in Lowndes County , i.e., starting businesses using a company name other than the legal (given name) owner's name, need a(n) DBA Doing Business As Trade Name Registration. For example, you start a(n) Automotive Sales business and you call it "Ultra Automotive Sales Co". You will need to file a trade firm name for it.

✔ Seller Permit

Also, keep in mind that in MS Automotive Sales though, a business license and a DBA is necessary for most businesses but if your business sells any taxable items, you will need a sales tax ID number. (A.K.A state id, wholesale, resale, reseller certificate, about $39 for most states). You will need it if you sell or want to buy wholesale any Automotive Sales related items, such as food, materials, or merchandise.
Seller's Permit

✔ Federal EIN

Note: All businesses need a federal tax ID number except sole proprietors that are not employers and are not independent contractors.
An independent contractor is a self employed business person that receives more than $600 per year from anyone of his or her clients.
IRS rule: The client must issue a 1099 form to the independent contractor and the independent contractor must have a federal tax ID. However, even sole owners may obtain a federal ID and use it as a business tax ID instead of using their own social security number as a business tax ID number.
However, all other licenses that apply to sole proprietors as discussed here are requited regardless of getting a federal tax ID number.

✔ State EIN

If you are thinking of hiring help, you will need a state employer ID and an IRS number employer ID. I.e., a MS Federal Tax Id Number ($29) and a(n) MS State Employer Tax Number

✔ L L C

Instead of filing a fictitious business name DBA Filing (about $49 plus state and legal newspaper publication fees) in Columbus, Incorporate in MS or form a(n) MS LLC .

If you will set up a corporation or form an LLC, you will not have to file a DBA (Doing Business As) unless your corproration or LLC name will be different that the busienss name you will trade under. Businesses that use the full legal name of the owner as a business name do not need to register an assumed business name. So, for example, your name is "John X Doe" and you use that as a business name.

✔ Incorporation

If you do form an Wholesale Trade llc or incorporate (about $49 plus state fees for most states) your Automotive Sales business instead of just filing a fictitious business name (dba), it will help you avoid legal and financial personal liability arising out of business transactions and you will not have to register the Columbus business name. Instead of filing a Lowndes County fictitious business name (our service fee includes dba business name filing and legal paper publication) you can elect to incorporate in MS or form an MS LLC (starts @ $49 plus state fee for most states & includes bylaws and LLC operating agreement)..

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Columbus 2/24/2015 6:22 PM .

E And L Auto Automotive Sales

Columbus, MS

How do I get an automotive sales business in Columbus, MS licensed?

Rows of polished cars glint in the sun, a salesman jingles keys and a customer walks around a bumper with a smile.

Short answer: For an automotive sales business in Columbus, Mississippi, the essentials are the Sales Tax Permit, a federal tax ID number (EIN) and a local business license, plus an LLC or other structure.

Buying and selling wholesale in Mississippi

Mississippi calls its seller's permit the Sales Tax Permit. Suppliers selling to you tax-free will ask for a the buyer's Mississippi sales tax permit (no separate state resale certificate form). Suppliers generally accept a resale certificate only from a buyer registered for sales tax, so even a business that mostly buys and sells wholesale usually registers. Mississippi relies on the buyer's sales tax permit number rather than a separate resale certificate form; confirm current practice. Dealers buy vehicles for resale with a dealer license and resale paperwork, then collect sales tax from the buyer when the title changes hands.

The paper trail for Columbus, MS

LLC – limits personal liability, and an LLC under its exact name needs no extra DBA
Assumed Name (DBA) – lets the bank accept checks made out to your business name
Federal tax ID number (EIN) – keeps your Social Security number off W-9 forms and supplier paperwork
Sales Tax Permit – collect and report sales tax on retail sales
The buyer's Mississippi sales tax permit (no separate state resale certificate form) – hand it to suppliers to buy inventory for resale without sales tax
State employer ID – for state income tax withholding and unemployment insurance once you hire
Columbus business license – needed even for home-based businesses, which may also need a home occupation permit
Motor vehicle dealer license

Same permit, different names in other states

Arizona: the Transaction Privilege Tax (TPT) license. Arizona's TPT is a tax on the seller's privilege of doing business, not a tax on the buyer.
Texas: the Sales and Use Tax Permit. In Texas a customer's permit number alone is not a substitute for a signed resale certificate.
California: the seller's permit. A California resale certificate normally shows the buyer's seller's permit number; sellers accept it in good faith to skip tax.

Tip: Dealer licensing usually requires a physical lot or office, so confirm the site requirements before signing a lease on the first shiny parking space.

Industry code: NAICS 441120 (Used Car Dealers), 441110 (New Car Dealers)

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