Getting a Wholesale License
What is a Wholesale License Each US state has a different name for a wholesale license. A wholesale license is a state sales tax id number that retailers are required to have in order to buy wholesale and sell retail. Wholesalers are required to have it to legally sell wholesale. A Resale Permit/License, Sellers Permit, Certificate of Authority, Use and Sales Tax License or Permit Sales and Use Tax, Application to Collect or Report Tax, Transaction Privilege (Sales) Tax, or Resale Certificate — all are the same thing. What is the Purpose of a Wholesale License The states, counties or other governing agencies want to be sure that anyone selling anything taxable has a sales tax id to collect the tax and then renders the tax to the government. Thus, all wholesalers or retailers of taxable items, such as toys, are required to obtain a wholesale license. When a resale number is obtained, it allows you to buy wholesale for reselling and pay no tax. The items bought at wholesale prices, are then resold, and tax is paid by the consumer at the time of purchase. Note that many states required you to obtain a federal tax ID in order to obtain a wholesale license to purchase for resale or wholesale. Note that in addition to getting a wholesale license, you may need to file a DBA http://www.businessnameusa.com (doing business as) certificate if you do business in a business name other than your personal legal name. Also, keep in mind that all businesses are required to obtain a business license or a home occupation permit regardless of whether you are a home, online, retail, wholesale or internet business. All businesses need a business license in addition to a wholesale license. If you will hire employees, you will be required to obtain a federal tax id number http://www.tax-id-number.info as well as a state employer identification number as well. How to Get a Wholesale License You can hire an attorney or a legal filing service to do it for you . You can also do it yourself, however, it takes a while just to find the correct form and the correct agency to file it. The application asks basic personal questions including your social security number as well as the projected gross income. Here is a site that can help you obtain your wholesale license: http://www.tax-id-number.info .
About the Author
<p>Robert Harris is a legal filings consultant. He has helped thousands of small business owners start their first business enterprise. Learn the essential steps to getting your tax id number, LLC
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