Amazon Tax-Exempt Status: How to Qualify

Amazon Tax-Exempt Status: How to Qualify?

Amazon Tax-Exempt Status

The ones who think they are crazy enough to change the world, often do – especially if they know how to use the Amazon tax-exempt status.

As someone who has been called a serial entrepreneur, I guess I am qualified to share a few cost-saving tips with those of you who are thinking of maximizing the benefits of running a non-profit business, but the best tip I can offer is to suggest you sign up for the Amazon tax-exempt program. Ok, so I am getting ahead of myself just a bit. Let’s first identify whether a nonprofit is an answer to your needs.


Why Start a Nonprofit Organization?

Today, new entrepreneurs want to make a difference. Yes. They want to earn a living but they also want to make a contribution to society. This creates more of an emotional draw than a monetary one.  However, just because you start a nonprofit organization does not mean, the organization can’t be profitable. Often it needs to be, otherwise, how will you meet those business expenses?

While choosing the nonprofit sector can be personally fulfilling, it is not a snap to succeed in. The attrition rate is as steep as it is in the for-profit business sector. If anything, it is in the nonprofit organization that you need to be more careful with your expenditures. Just as in a for-profit endeavor, your biggest risk of failure comes in the first few years of operations. Unfortunately, there are tens of thousands of nonprofits launched annually, and despite their good intentions, too many of them go bust within a year. This is why it becomes crucial for you to begin your venture with a lean expense mindset. And the first place you want to start when it comes to cutting business expenses is the Amazon Business program where you can take advantage of the Amazon tax-exempt program.

Use Amazon Business to Help Your New Enterprise?

Amazon business has teamed with many office supply providers to offer equipment and business products with deeper discounts. So the platform offers the perfect place to purchase office equipment, printers, computer equipment, supplies and more at very affordable prices. Best of all for you is that they can be even more affordable through the Amazon tax-exempt program available to non-profits.


Why Amazon?

Like many entrepreneurs, nonprofits can find the products they need to keep operations in motion without having to spend a lot of time in transit or going to stores looking for what they need. On Amazon, you can find everything from  IT needs to janitorial items, and the best part is you don’t have to stand in like to make the purchase. It only takes a few minutes and your products can be on your doorstep in just two days if you sign up for Amazon Prime shipping. It is the fastest, most cost-effective and convenient way of purchasing needed office supplies.


What Is Amazon Business?

You are probably already familiar with Amazon, but did you know that Amazon Business offers the same or better shopping conveniences for business needs. The program offers a variety of benefits not available to regular Amazon members. It is a purchasing solution for businesses across the nation, and best of all, allows you to benefit from deep discounts. Amazon gives you different options to help you manage your business account, choosing different payment methods, and the program even gives you the ability to manage different account users, combined payment methods, and varying shipping addresses. The program offers deep discounts and best of all, as a business, you can qualify for Amazon tax-exempt purchases when you register your tax exempt number with Amazon.


How Does Amazon Tax-Exempt Help New Nonprofit Entrepreneurs?

All you need to do is sign up for an Amazon Business account. This is a free sign up that qualifies you for special pricing and sales tax exemption if you have an exemption certificate. During the process, you will be asked to supply your business tax exempt number to eliminate collecting sales tax.


How to Get Your Tax Exempt Number?

If you are a non-profit organization the Internal Revenue Service will issue you a tax-exempt status.  This will allow you to be exempt from sales tax collection.  You may still need to pay income tax on the money you make and collect tax from your clients unless they have an exempt certificate.


Once you register your business and get your tax exempt number you can sign up to use it on Amazon. If you need to set up an office in your home, buy furniture, computer equipment, printers shelving and more, you can qualify for these purchases without having to pay sales tax, providing you sign up for the Amazon tax-exemption program.


Amazon Business Is a Vital Tool

You can use Amazon Business for large and small purchases and can now even split the costs between other team members, donors and people working with you on your different projects.


Non Profit Does not Mean Non-Revenue

So as we mentioned before to qualify for the Amazon tax-exempt status you must register as a nonprofit business. I know. I know. You are thinking that if you register as a nonprofit, this means you can’t earn money. But that is not necessarily so.

Amazon Business and the benefit of using the Amazon tax-exempt service is certainly a game changer in the non-profit sector but there are also a few other tips that I can offer to help you save money in your operations.


Find Mentors

Instead of paying for services such as legal, accounting, and other key business factors, use your brain, your common sense. Find free mentors to help you with advice, feedback and networking needs. Organizations like SCORE and your local business development organization can help with free consulting and educational services.


Barter and Trade

Barter or swap with other businesses. It is a great way to find the things or services you need and conserve cash or move excess inventory.


Create Supplier Partnerships

Finding the right suppliers can save you a great deal of time and money. These are suppliers that offer high-quality products and can help with your own services. They do this by offering extra support for on-time delivery, extended payment terms, trade credit and more.


Find Customer Partnerships

Partnering with customers especially during the initial stages of your non-profit business is an excellent cost saving strategy. Find a few key customers that you can offer special deals in exchange for long-term commitments to buy or purchase your services or commit to your project.


Use a Commissioned Based Sales Force

When you take on a sales team use a commission sales program. This will avoid your having to place funds aside for employee salaries. And the good sellers out there will flock to your business if they like your product or service.


Work Virtually

This is the new age of technology and people can work from anywhere. You can hire people to help you from other countries where the cost of living is substantially less. By working virtually and finding employees that do the same you can avoid the expense of office space.


Borrow, Rent, Buy Used

Find ways to use other resources. Whenever possible ask for donations, borrow other peoples resources, rent rather than buy. Some providers offer excellent equipment that they can lease out or sell used. Go to auctions and bankruptcy sales to find the deals.


Use Free Software

Look for free software online. There are several online programs like google docs that can help you manage your finances and your documents, track customer needs and much more. You can also take advantage of free trials for business software options.  Most free graphic design software is good enough to print stationery for your business like custom catalogs and custom CDs.


Minimize Expenses in Every Way Possible

Keep expenses to a minimum when starting a new non-profit venture. This is not the time to invest in a new car or house. You need to live with minimal expenses and also the lower, you keep your personal expenses, in the beginning, the better off you will be.


Everyone Needs to Sell

When you first start a non-profit business or project everyone needs to perform. Your entire team needs to sell the product. Or also need to promote the service. All your team members need to talk up the business, promote the products as well as assume responsibility for promoting revenue. Yes. You are a conscious business and want to give something back to society. But you do need to create revenue to pay your employees. And fund your business needs. Do not forget to make nice embossed business cards for everyone in your office to make your business stand out!


Bottom Line

If you have a project in mind that is educational, community-based, or related to science, you might be better off registering your business as a nonprofit. This way you can take advantage of tax breaks and tax-exempt status for many of your purchases.  Whether you are an online retailer or have a physical presence, it is a good idea to see if you qualify for sales tax exemption.  This type of exemption will save you a lot of money. Just make sure you are following all tax laws on your tax return.

Registering as a nonprofit has many benefits. Primarily it helps you make a difference to society through the organization. The nonprofit business can make more than what it spends. This is money you can use to pay employees and the people that help with the project. When it comes to entrepreneurial projects that make a difference to society it is important that you take advantage of every possible saving. One such program is like that of the  Amazon tax-exempt program.


Like this article? Here are a handful of additional free business tips!

Don't forget to share this post!

Share on facebook
Share on twitter
Share on linkedin
Share on pinterest
Share on whatsapp

Want to see more from Nonstop Signs?

We’ll send you emails with our latest and greatest posts—and some fun extras.