ANSWERS: 1
  • If you plan to buy any wholesale goods and then resell them, you will need to obtain a reseller's permit. Before you can apply for the permit, there are other steps you need to take first.

    Local Business License

    Obtain a local business license from the city government. If your business is a sole proprietorship, and you will not be using your name in the name of the business, you might also have to file for a fictitious business name permit as well. In most cities, the filing of a fictitious business name permit is required whenever you are doing business as something other than your real name. For example, if Bob Jones opened a store and called it "Bob Jones Hardware," he would not need to file for a fictitious business name permit. If, however, Bob called his store "Lucky Hardware," he would need to file for the permit. You usually obtain applications for a business license and fictitious business name from the office of the tax collector.

    State Business License

    Apply for a state business license, as well, when selling some types of regulated products, such as chemicals, firearms or medications. You can usually find the applications for state licenses at the office of the secretary of state. Many state government websites make these forms available online.

    Sales Tax License

    Obtain a sales tax license, if you will be selling retail items and charging sales tax. Check with your state franchise tax board to find out what your state requires. If a sales tax license is required, you can obtain an application at the nearest state office building, or see whether they are available on the state government website.

    Federal Tax ID Number

    Get a federal tax identification number in order to identify your business. The tax identification number can be easily applied for on the IRS website. If your business is a sole proprietorship, you will also have the option of using your Social Security number for identification. However, you probably should get a federal tax identification number, because the other companies you do business with may require it.

    Reseller's Permit

    After you obtain your licenses and permits, you can apply for your reseller's permit. You usually get your reseller's permit through the state government, but in some cases these types of permits are issued at the county level. The reseller permit will allow you to buy and sell goods on a wholesale basis, without paying or charging sales tax. For example, if you plan to make homemade greeting cards, you will be able to buy the envelopes and other materials at wholesale prices. You will not be required to pay sales tax on the items, because your are purchasing with the intention of reselling the items.

    Source:

    SCORE

    SellerPermit.com

    Resource:

    SCORE

    U.S. Small Business Administration

    National Business Association

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