Several times after I prepare and file a trademark for my clients, I am asked how to get suppliers to offer discounts with a wholesale or resale license. By the way, a resale, seller's, reseller's or wholesale license is the term used for a sales tax id issued by the state. You are required to have it if you sell taxable products or services at the retail or wholesale level. 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
How to get a Wholesale License
First, lets examine why the state wants you to have 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.
In addition, manufacturers who sell wholesale want to be sure their customers are buying to resell and not use for their own private needs. When wholesalers ask for a wholesale or resale license, it is just to make sure that it is a business and not an individual buying for their own consumption.
As an attorney, I have set up quite a few small businesses. On several occasions we have helped client's obtain a wholesale license. We have been using a professional and inexpensive service to help us obtain these documents. When the license is issued, it looks like any permit with a resale number that permits the business to buy wholesale.
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.
We recommend using this site to get your wholesale license. They have helped us in the past to get our wholesale license within a short time. However, note that we cannot guarantee the results of parties we recommend you to obtain a sellers permit.
All legal articles in this site are general and informative. The articles or any other information on this site is not legal advice nor is any information warranted or guaranteed. Laws change over time and in different localities and jurisdictions laws may be different from any laws mentioned on this site. It is advisable that you consult a attorney and or an accountant in the area where your business will be located.
Elias Stassinos, Esquire is a trademark and incorporation attorney that has helped thousands of small business owners and entrepreneurs launch their first business enterprise. He's also an entrepreneur who operates several successful businesses not related to his law practice.
Copyright © E. Stassinos, Esq. 2005. All Rights Reserved.