Code for selling Towels and other linen products

Forum|Forum|1 year ago
July 28, 2024
1 reply
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I have recently opened my LLC and I am the only member at this moment. I want to import Towels and other linen products and sell in chains or retailers. What would be the code for my business?
Currently I have code for selling products online like Shopify/Amazon.

Not A Product Question

rjs

Employee

I'm not sure exactly what you mean by "sell in chains or retailers." If you will be selling the imported goods to the chains or retailers, then you are a wholesaler. I would use code 424990 for wholesalers of "other miscellaneous nondurable goods." If you mean that you will have your own store within a store, and you will be selling directly to consumers, then you are a retailer. In that case I would use code 459990, "All other miscellaneous retailers."

SahirAuthor

What about if my LLc start bidding govt or non govt contracts and the supply goods as per their demands? Would it still be the same or different?

i will really appreciate your reply

rjs

Employee

I think it should be the same. Selling to the government is the same as retail sales. For a non-government contract, it would depend on what your customer is doing with the goods. If they are buying the goods for their own use, that's a retail sale. If they are reselling the goods, you are a wholesaler.

Don't spend a lot of time or energy worrying about the business code. It doesn't affect your tax. The IRS uses it mainly for statistical purposes.

I notice that in your original question you said that you are the only member of the LLC "at this moment." If you add other members the LLC becomes a partnership for tax purposes. That means it is a different business entity, and it involves a lot of other tax considerations. If you add other members you should consult a local tax professional for guidance.