Sparta, MI
A car on the lift, the smell of grease and a radio playing over the clang of a wrench.
Short answer: For an auto repair shop in Sparta, Michigan, the essentials are a federal tax ID number (EIN) and a local business license, plus an LLC or other structure.
Michigan calls its seller's permit the Sales Tax License. To buy for resale without paying sales tax, you give the supplier a Form 3372 Sales and Use Tax Certificate of Exemption. Michigan says wholesalers selling only to other wholesalers or retailers are not making retail sales, so sales tax registration is not required. Michigan wholesalers buying tax-free should give suppliers a written statement that they are purchasing for resale at wholesale. Parts sold or installed as a separate charge may be bought for resale with a certificate, while shop tools, lifts and supplies used in the work are normally taxable when purchased.
Tip: Hand customers their old parts when they ask, because it builds trust and quickly ends any rumors about what was really replaced.
Industry code: NAICS 811111 (General Automotive Repair)
Get your Sales Tax License filed · Start your LLC, DBA and EIN · Business licenses
Clint · Clint's Automotive · Uniontown, PA
Clint asked: “I am a mechanic that buys parts and puts them on customers' vehicles.”
Hi Clint, parts you install are the key tax question. In Pennsylvania, the Sales, Use and Hotel Occupancy Tax License matters, and you can give suppliers the Form REV-1220 Pennsylvania Exemption Certificate for parts you resell to customers, but not for tools. An LLC for Clint's Automotive helps separate personal assets. You will also need an EIN.
Short answer: LLC Uniontown PA 15401: for an auto repair shop in Uniontown, Pennsylvania, the core set is the Sales, Use and Hotel Occupancy Tax License, a federal tax ID number (EIN) and a local business license, plus a business structure and name registration.
The Pennsylvania version of the seller's permit is the Sales, Use and Hotel Occupancy Tax License. To buy for resale without paying sales tax, you give the supplier a Form REV-1220 Pennsylvania Exemption Certificate. Not a sales tax license. A business selling only to resellers applies for a wholesaler certificate instead; it cannot hold both. Pennsylvania issues a separate wholesaler certificate to businesses that sell only for resale; any retail selling requires the sales tax license instead.
Get your Sales, Use and Hotel Occupancy Tax License filed · Start your LLC, DBA and EIN · Business licenses
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All Businesses Need a Sparta Business License & a Trade Business Name ( Kent County Trade Business Name required if using a trade name).
Retailers / Wholesalers, Need a Reseller Tax ID, & a Business License.
Employers Need a Federal Tax Id Number (EIN), a MI State Tax Id ( State EIN), & a Business License.
Corporations, & LLC Need a Federal Tax Id Number (EIN)& a Business License.
Partnerships Need a Federal Tax Id Number (EIN) & a Trade Business Name, but also need a Business License.
Sole Proprietors May Use a Federal Tax Id Number as a MI Business Tax ID but also need a Business License.
Instead of filing a Trade Business Name, You Can Incorporate in MI or form a(n) MI LLC & You Will Not Need To File A DBA
Requirements below include websites as well as home-based or eBay Businesses.
1. Automotive Repair 99% of new businesses are required to get a(n), Sparta business Id registration ( business tax registration or business permit).
2. Automotive Repair Starting businesses using a company name other than the legal owner's name need a (n) Kent County DBA Doing Business As Trade Firm Name Registration.
3. In MI a business tax ID registration (occupationall business license ) and a DBA Doing Business As Fictious Business Name are ncessary for most businesses but if your business sells any taxable items, you will need a sales tax ID number. ( A.K.A MIseller's permit, state id, wholesale, resale, reseller certificate).
4. If you are thinking of hiring help, you will need a tax ID called a state EIN and an IRS tax ID number called an EIN Employer ID Number. I.e., a MI Federal Tax ID Number and a(n) MI State Employer Tax Number.
5. Instead of filing a fictitious business name DBA Filing in Sparta, Incorporate in MI or form a(n) LLC.