Maybe someone out there can help me. I've been looking for information about wholesale licensing. Can anyone tell me where to go to get a license? What it would cost?
I'm a small seller on ebay and I have found a couple of wholesalers online that you need a wholesale license to buy from. They have another website for non-wholesalers but the discount is not as deep.
Last question: Is getting a wholesale license worth it?
posted on February 3, 2001 08:04:37 PM new
In TN it does not cost anything. I just went to the Tennesse Dept of revenue, filled out paperwork, and got my Account #. Now, I DO have to collect sales tax on sales within TN and fill out a sales tax return form quarterly, but that is not a big deal since I am a small business, and most sales are out of state.
It is definately worth it for me, as I would not be able to purchase wholesale otherwise.
posted on February 3, 2001 09:42:25 PM new
Your wholesaler is simply seeking some type of proof that you are really going to resell (i.e., not an end-user). I would suggest you call them and ask them exactly what they are looking for.
I am not really even sure exactly what is a "wholesale license" - I hope no one asks me for one as I have no idea who would issue it. In Texas there is no such thing that I am aware of. I do have a permit to charge sales tax which is what I show whenever anyone asks for documentation.
posted on February 3, 2001 10:06:58 PM new
I've never heard of a wholesale license.
Many wholesalers will require a large minimum purchase, and perhaps a resale permit.
Resale permits (also called Seller's Permits) are issued by the individual states- generally by the State Board of Equalization (or whatever your state calls it-- these are the folks that collect sales tax). Your resale permit allows you to avoid paying sales tax when you buy something for resale. It also plugs you into a system whereby you collect sales tax on your in-state sales, and pass them along to the state quarterly or annually.
posted on February 3, 2001 10:45:08 PM new
What you are talking about is a tax id number in most states it is free, but then over course the expect you to file sales tax for that state. In some states they ask for a small fee 5-25 for paperwork charges. It is always worth being legit. It doesn't cost you anything besides time because you charge your customer the taxes and you get the discount.
>>Your resale permit allows you to avoid paying sales tax when you buy something for resale.>>
Taxes really aren't avoided. They do this so that the item won't be double taxed. If you buy with intention to resale you should charge tax to the person who buys it from you if they live in that state. You are consider a business if you are buying for the intent of reselling. If you paid taxes and your buyer paid taxes that would be double taxation. So, with the right paperwork you will not be taxed because your buyer will be paying the sales tax. it also helps business weed out the little man in some ways that just aren't going to buy enough. Wholesales make their money from bulk buyers. Anyway one isn't avoiding taxes by having a tax id number. The item just isn't being double taxed.
Over time now that sales have changed and there are many things being sold state to state country to country. This old system will no longer work and Uncle Sam will change it but it will take them time to catch up to the new way of buying.
posted on February 4, 2001 07:34:03 AM new
In PA, I applied online for my "Sales Tax License" which is called something different everywhere, I guess. Anyway, I applied online, got my number in 48 hours and my actual paper license within 5 days. It was all free. I do have to file quarterly, but like kidsfeet said, it's not a big deal, that can all be done online for my state
posted on February 4, 2001 08:11:23 AM new
I have never heard of a "wholesale license," either BUT, to buy wholesale, anywhere in the US, from a reputable wholesale dealer you need a State Resale Tax Number.
ALSO, many large wholesalers require a minimum purchase when you buy; some as low as $50, and some from $500 to $1,000 or more.
As someone else said, you do have to keep records for in state sales, collect and report taxes. Depending on the state it is normally a monthly procedure, in a few states if you don't have a very high volume they allow quarterly or bi-yearly reporting.
We have people approach us all the time about buying wholesale from our web site, "saying" they are dealers - the same at our shop - and the first thing I ask for is a photocopy of their "State Resale Tax Number." Amazing, how many just happen to have forgotten it! Naturally, a genuine dealer knows that they need this to buy wholesale, and in many instances to even get in the door of certain major wholesalers.
