posted on October 12, 2000 05:55:45 AM
What is required to receive a wholesale license and be able to purchase items at wholesale and resell on Ebay? I am a resident of Alaska. Thanks!
posted on October 12, 2000 06:45:18 AM
In New Jersey, you need to fill out a form from the state division of taxation to get a resale number. This allows you to buy goods for resale without paying sales tax. The wholesaler needs that number in order to not collect sales tax.
Some times a wholesaler wants to see some company id, a business card, an invoice, company checking account or a DBA. DBA is short for "Doing Business As" and means that you have registered your name with the local government (in NJ, its the county). To do this all you have to do is fill out a form at the courthouse, check to make sure no one else in the county is using the name you picked, and pay a fee. You only have to get a DBA if you are using a name that does not contain your own last name (for example, All County Florist would need a DBA but Smith's Florist wouldn't). THe bank also requires the DBA certificate to open an account in the business name (again if its not your own). DBA give your business more credibility, I've found.
posted on October 12, 2000 06:50:57 AM
Hi Slimtim98,
Most wholesalers require a resale tax number that you either tell them about or send them a copy of, from your state that has your business name and address registered. If Alaska charges a state tax and you sell to other Alaskans, you are then required to collect and to pay a tax on those sales.
Some wholesalers require a federal tax ID number but that is more rare and you will only need that ID, generally, if you have an employee.
Don't let the tax issue scare you though. Having a resale tax number is well worth keeping a record of the sales tax you have collected. Usually you only have to file annually. There is paperwork to owning a business and the better you are at keeping good records the easier you will make it for filing a profit and loss statement with your personal federal income tax in April. That's worthwhile too.
I'd like to suggest a book but most are way too complicated for the person who just wants to have a small one person business. If you can find a craftsperson or other small business person to talk to in your area, that could help you. Or ask your tax preparer, or accountant, if you have one. They know all about small business and can advise you easily. Go for it and good luck. CC
posted on October 12, 2000 07:44:28 AM
A resale permit allows you to purchase without paying sales tax but not neccessary at "wholesale price." You need to purchase in large volumn to get real wholesale price break. Small purchase never really get wholesale price, resale permit or not.
posted on October 14, 2000 06:26:09 AM
Thanks so much everyone for the help and advice. I really appreciate it! I have found out how to receive a business license in Alaska, and am still inquiring as to a reseller permit. To find wholesale companies, I assume I simply search on the Internet for them? Thanks!
posted on October 14, 2000 08:57:43 AM
Be sure to check with your Zoning officials if you're intending on working out of the house. Neighbors don's always like trucks rolling in where no access is provided. Best to do business in the business district. Get a tax license. You may even be eliglble for grant money in some states. Either way, have fun and take it light.
