Hi I was wondering about tax exemption? How does one go about becoming tax exempt? I have an online business

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I have an online business and make a lot of purchases though Home Depot. They have a tax exempt option. What does it mean to be tax exempt? Whatever is exempt do I need to pay that at the end of the year?

Attorney Answer

1
Kaye Willi ·
Section 501(c) of the Internal Revenue Code describes various types of organizations that can apply for tax-exempt status with IRS. The most common types of tax-exempts are public charities, which are defined under 501(c)(3). Churches are automatically tax-exempt for federal so they don't have to apply for an exemption; however, most do so they can save on state and local taxes. Based on the brief information provided in your question, on its face, it doesn't sound as though your business would qualify for tax-exempt status. To find out for sure, you need to discuss your situation with an attorney who has experience obtaining tax-exempt status for tax-exempt organizations. I hope this helps.
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