Answer: To sell Resale wholesale, you need a sales tax id also called a seller's permit. So you need at least a dba, LLC or corporation, the seller's permit for that and as a business, a business license and an EIN.
Krickets Korner is a resale site. I buy and sell used and new items and sell
on different sites. I offer a wide variety of items. I am located in Fl but ship
all over. Thanks and God bless?
Q: I would Like to Apply For Seller's Permit
A: You can apply for it here online. you also need a business license and a
dbsa filing for your business name "Polk Cedartown Resale". As any other
business, many resale shops don't survive the first year, on the other hand
there are more than 25,000 resale, consignment and Not For Profit resale shops
in the United States having annual revenues of approximately $13 billion.
Resale is not the same as retail.
As opposed to past times, resale shops sell high quality goods at lower prices.
In fact, resale beats retail and remains healthy and continues to be one of the
fastest growing segments of retail.
This is a booming industry opening store growth of approximately 7% a year for
the past two years. This percentage reflects the estimated number of new stores
opening each year, minus the businesses that close. Goodwill Industries alone
generated $2.69 billion in retail sales with about 16 - 18% of Americans will
shop at a thrift store during a given year. For consignment/resale shops, it’s
about 12 - 15%. To keep these figures in perspective, consider that during the
same time frame; 11.4% of Americans shop in factory outlet malls, 19.6% in
apparel stores and 21.3% in major department stores.
Selling Resale stuff requires a sellers permit because you need to collect
taxes when you sell them. Sales taxes that is.
Of course, any business needs to be a sole owner, corporation or LLC.
If you do not choose to become an LLC, you will need to register your business
name especially if it is a name without your first and last name in it.
First, select your Resale stuff business structure: Sole Proprietor,
Partnership, LLC or Corporation.
Then, a sellers permit is required if you sell merchandise wholesale or retail.
If you are an employer, you will need a federal employer Number and a State
Employer Number.
Users of a trade name will need a fictitious business name filing. Finally, you
have the option or incorporating or forming an Resale stuff LLC.
Sellers Permit or Resale License
If you want to buy any taxable merchandise such as jewelry or clothing at
wholesale prices to make jewelry to re-sell, or to buy clothing and accessories
to resell them, then you need state sellers permit or sales tax license also
called a resale license.
States Require A Sellers Permit
This is because most states require jewelry vendors to collect tax on sales made
within that state as opposed to out of state. For example, you are in California
and you sell a piece of jewelry, e.g., a gold ring, to a New Yorker. Since your
business is located in CA, you do not need to charge taxes.
Selling in-state requires that you charge sales tax
On the other hand, if you sell in California you need to charge sales tax on
every retail sale that’s shipped to any address within California. So if you are
selling your jewelry, get your sellers permit also called a resale license.
There is no other way to buy wholesale and re-sell retail. The implication is
that even if you sell just wholesale, you still need to get the resale license.
This is because in the end... the end user has to pay sales tax.
Hence the requirement to get a sellers permit as a wholesaler so the state can
monitor sales between wholesalers and retailers ( taxable item sales that is ).
Anytime you run into a state inspection, the state it will you to show proof
that tax-exempt sales are indeed sold to vendors with a valid Seller’s Permit.
Unless you had a valid resale license at the time of the sale, you will have to
pay the taxes or penalties of the sales without a resale license. Things are
that harsh.