Wholesale Business - 3 Simple Steps and the License to Wholesale Business Will Be in Your Hands!
Retailing business is booming online, and so is the wholesale business.
Many people are looking forward to start their own wholesale business right from the comfort of their home.
All they have to do is get products from the manufacturer, sort and repack the product depending on the requirement of the client, and then sell them to a retailer.
This business looks tempting to many as it offers good profit margins.
If you are also planning to enter this business, you will first of all need a wholesaler license.
The wholesale license is also sometimes known as resale certificate.
This license is usually issued by the state in which you are planning to do the business.
Having the license means that the state is permitting you to act as an agent and buy merchandise to sell to other businesses.
The following are the prerequisites that you need to adhere to in order to get the license: 1.
You should have a Federal Tax ID or an Employment Identification Number (EIN).
In case you do not have these, apply for them as soon as possible.
There importance is, it's the EIN which allows you to collect the sales tax.
And as we know, collecting sales tax is mandatory.
You can apply for EIN through IRS (Internal Revenue Service).
The exact form number is SS-4.
You won't be required to submit any sort of fee for this.
2.
You would also need a sales tax license.
Almost all the states apply sales tax to goods and services bought and sold.
If you have a sales tax license, you will be permitted by the law to collect tax.
There is a good clause for you here.
When you have either a wholesale license or a reseller certificate, you can avoid paying sales tax at all on the items intended to be resold wholesale.
For the exact sales tax rates, talk to your sales tax department.
3.
Wholesale license will be applied at the state department of revenue or taxation.
You should also thoroughly read and understand their website for all the information regarding your application process.
There's also a fee that you have to pay for processing of the form.
While filling the form, make sure your writing is legible, neat and error free.
Also, review your form before submitting it.
After the license, to get started with your wholesale business, register yourself on a reputed online wholesale directory like SaleHoo.
Also, be ready for the demands that the directory has.
Like SaleHoo, screens all its suppliers before registering them.
SaleHoo also claims to give its suppliers access to enormous opportunities in wholesale business.
Check different directories and register yourself on the one you think will serve you the best.
Many people are looking forward to start their own wholesale business right from the comfort of their home.
All they have to do is get products from the manufacturer, sort and repack the product depending on the requirement of the client, and then sell them to a retailer.
This business looks tempting to many as it offers good profit margins.
If you are also planning to enter this business, you will first of all need a wholesaler license.
The wholesale license is also sometimes known as resale certificate.
This license is usually issued by the state in which you are planning to do the business.
Having the license means that the state is permitting you to act as an agent and buy merchandise to sell to other businesses.
The following are the prerequisites that you need to adhere to in order to get the license: 1.
You should have a Federal Tax ID or an Employment Identification Number (EIN).
In case you do not have these, apply for them as soon as possible.
There importance is, it's the EIN which allows you to collect the sales tax.
And as we know, collecting sales tax is mandatory.
You can apply for EIN through IRS (Internal Revenue Service).
The exact form number is SS-4.
You won't be required to submit any sort of fee for this.
2.
You would also need a sales tax license.
Almost all the states apply sales tax to goods and services bought and sold.
If you have a sales tax license, you will be permitted by the law to collect tax.
There is a good clause for you here.
When you have either a wholesale license or a reseller certificate, you can avoid paying sales tax at all on the items intended to be resold wholesale.
For the exact sales tax rates, talk to your sales tax department.
3.
Wholesale license will be applied at the state department of revenue or taxation.
You should also thoroughly read and understand their website for all the information regarding your application process.
There's also a fee that you have to pay for processing of the form.
While filling the form, make sure your writing is legible, neat and error free.
Also, review your form before submitting it.
After the license, to get started with your wholesale business, register yourself on a reputed online wholesale directory like SaleHoo.
Also, be ready for the demands that the directory has.
Like SaleHoo, screens all its suppliers before registering them.
SaleHoo also claims to give its suppliers access to enormous opportunities in wholesale business.
Check different directories and register yourself on the one you think will serve you the best.