If you are interested in becoming a wholesaler or a retailer who resells wholesale goods, you are going to need a wholesale license. Here are some things you need to know about how to get a wholesale license.

1. Every U.S. state requires wholesalers and retailers to have a wholesale license, although the license is called by different names in different states. For instance, a wholesale license is also known as a resale permit, a resale license, a resale certificate, a seller's permit, a reseller's permit, a reseller's tax ID, a state tax resale ID, a certificate of authority, a use and sales tax license/sales and use tax permit, an application to collect/report tax, or a transaction privilege (sales) tax. Don't let all the different names confuse you -- they are all the same thing.
2. A wholesale license gives you the right to legally sell goods wholesale or to buy goods wholesale and resell them at retail. Keep in mind that wholesalers cannot sell goods at retail.
3. Every state requires wholesalers and retailers to have this license because it helps them keep track of companies that are in this line of business, as well as ensure that taxes are being properly collected and rendered to the government. Note that retailers do not have to pay any tax when buying goods wholesale; rather, they collect the tax from their customers when they resell the goods.
4. In addition to a wholesale license, all states require you to have a business license or home occupation permit. This applies whether you are a home-based, online or brick-and-mortar business.
5. Many states also require that you have a Federal Tax ID before you can obtain a wholesale license. If you plan to hire employees, getting this Federal Tax ID is mandatory, and you will also need a state employer ID (also known as a State Tax ID).
6. Finally, if you are doing business under a name other than your own, you will also need a DBA (doing business as) certificate, unless you incorporate or form an LLC (limited liability corporation).
7. You can hire an attorney or a legal filing service to help you get a wholesale license, along with the other permits and certificates you may need. Alternatively, you can visit your local Chamber of Commerce or try an Internet search to find your state tax department. For example, if you are in New York, you would go to the New York State Department of Taxation and Finance (either online, by phone or in person) and fill out the appropriate form(s). Keep in mind that you may need to file applications at both the state and local (county/city/town/village) level.

Once you have acquired your wholesale license, you can start selling goods as a wholesaler or a retailer. Make sure to register on product sourcing websites, such as ASD SourceBook, to list your products if you are a wholesaler or to source products to resell if you are a retailer!

Register for SourceBook and connect with thousands of licensed wholesale buyers and sellers today!