Can my online sellers avoid applying for EIN if I pay the tax on their sales


I have an online Fashion catalog and I want to recruit lady college students as retailers.
I provide them with an online shop (under their name), So if the lady student's name is Debbie, She can name her online shop "Debbie's Collection" and even direct he own domain URL to the shop.

But I had many students rejecting my offer, since it concerns Tax and EIN application.

Now, here is some data to take in mind:
I Provide online management tools for them to operate & promote their eshop.
I provide the payment system.
I hold the money for 30 days in a trust fund, to allow "30 days money back guarantee" and reduce possible internet scam.

And my question is:
Can I pay the TAX for them?

Thank you,

Ecommerce Tax Retail

asked Dec 1 '12 at 22:40
Guy Hyams
1 point
  • I think you should start with how are they selling now? – Karlson 10 years ago

1 Answer


I'm assuming you're talking about the US. You cannot pay the tax for them, they pay for themselves. If they refuse to provide the tax id, you must withhold per the IRS rules (30% IIRC) and they would then go and claim refunds on their own.

I'm not sure why they would need EIN, but they would definitely need a tax ID (which could be SSN as well) for tax reporting.

If they're your employees, then its you who should be applying for EIN, not them. You then pay them salary and withhold taxes (and you need their tax ID's for that, and form I-9 filled and verified).

answered Dec 2 '12 at 08:44
5,090 points
  • Yes, I am referring to the US. So actually they don't need a special permit, just an "end of the year income report" for their TAX balance report. – Guy Hyams 10 years ago
  • @Guy I don't know anything about permits. You and them should inquire at the local municipality about that. That was not what you've asked about. – Littleadv 10 years ago

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