If you are planning to open your physical retail shop or E-commerce website, it is always prescribed by the pundits of the business is for you to obtain a wholesale license not just for the legalities, moreover for the benefits it provides. It is fairly a simple and linear way to gather license for clothing. More fortunately for you, you have already managed to break the barrier in the way of obtaining the license and permits as you are already reading this article. This article will help you in explaining the procedure of getting the license and take you one step closer to achieving your dream.
Getting the (EIN)
First, you need to register your business legally in order for it to do business. In order to do that you need to apply for the Employer Identification Number (EIN) from Internal Revenue Service (IRS). Do not get confused if you hear Federal Tax Identification Number, its another name for EIN. The application process can take up to two weeks. You can’t really hire an employee or do any business until you have received the number. Nonetheless, it does not matter if you want to hire anyone or not, you must need EIN number to operate.
Obtain a Sales Tax License
Now that you are all informed and got the EIN your next step is to acquire your Sales tax license. This will permit you to charge sales tax on the products you are selling to the customers. Both the terms on the license and the percentage that you will be charging from your customer depends on where you live. For further quarries and submission of your application you should drop a visit in your state’s tax office. Applying for the Whole Sale License.
With all the necessary documents that you obtained as we stated above. You have come to the final step. Which is applying for the whole sale license from the city where your business is. Again, do not! I repeat, do not get confused with the names. The names vary from states to states. The license you are looking for is called seller’s permit, a resale license or even a resale certificate. No matter what is called, they provide the same purpose. Contact the revenue or tax office of your state, as the application process and fees vary throughout the US.
Why do you need it?
The primary reason is for the legality of your business. In order to smoothly run a business, you should always make sure you are running the business with all its legality. This will not only give you priority but also give you a sense of confidence.
Secondly, most of the urban wholesale vendors like Mir Apparel ask for the wholesale license of your company prior to any orders you make. You will simply not be able to make any purchases if you do not have a Wholesale license. Why limit your options then?
Thirdly, with the wholesale license you will not have worry about paying sales tax on the products that you want to resell. Which mean you will not have to worry about paying extra taxes and you can buy urban wholesale clothing in bulk.
In conclusion having license means you can operate the business with all the confidence in the world. You can get the cheapest possible price without worrying about taxes which in turn only help your business in growing for further expansion.