How do I purchase wholesale collectables (figurines,precious moments etc.) with out a tax identification number legally, of coarse? I've been searching online and only get hits from wholesalers who sell full lots from department stores that are overstock and returns. Most of them don't even let you visit there warehouse to see what you are purchasing. Why? Can anyone help me?
Yasmin
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Wholesalers
8 posts
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If they will not let you visit their warehouse, they are crooks and yo should stay away. There is no reason why they should not let you visit. Another reason why they will not let you visit is because they are brokers and do not actually own or warehouse anything they sell. In this case, you should still stay away because a broker who is not upfront about being a broker is also engaging in crooked activity in my opinion.
As far as a tax ID. You do not need a tax ID if you set your business up as a simple sole proprietorship. As a sole proprietorship, your Social Security # can be used as your Tax ID. There is no reason to set yourself up as a corporation when you are just starting out. If you do set up as a corporation, then you will definitely need to get a federal Tax ID number.
What you need to get is a sales tax/resellers certificate from your state. THis enables you to collect any sales tax from your in state orders and send it to the state every quarter and it also is a requirement for alot of wholesalers. Not surplus/closeout wholesalers. I mean 1st quality, new in box wholesalers. Some out of state wholesalers will require you to fax a copy of this certificate toi prove yo9u are a reseller, others will not. But ALL IN STATE wholesalers will require you to fax a copy to them. They need to have a copy on file in order to not charge you sales tax on your wholesale orders. -
Thank you for your informative response, you really educated me. I just have one other question for you since you are so knowledgable in this area. Where do I find the "real" wholesalers after I do what you described? Are there any online websites or out of state resources you wish to share? yashuo122178@msn.com
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I completely agree with cxm322. Finding a good wholesaler will take some time. I have been with mine for over 7 years. The best way to find great wholesalers is to attend a ASD/AMD Trade show if you get the chance. Look around, see what's on the market. Think to yourself also, what do you enjoy doing the most. Example: Me, I love collectibles! Learn the history of what you are selling. I can name over 300 Cherished Teddies by name, and year of production. I sell collectibles because I'm also a collector. If you enjoy what you sell, then it's not a job. It's a hobby, and more enjoyable.
Once you find one wholesaler you enjoy, get to know the person you are dealing with. A lot of time they will refer you to another wholesaler. Most wholesalers will help eachother out. The best way to find great wholesalers, is to talk to wholesale rep. A lot of them will attend the same trade shows, and know eachother. They can tell you who to stay away from, and who are great companies to deal with.
Good Luck!
Joan -
You will need a reseller certificate from your state to purchase wholesale and not have to pay state sales taxes on your purchases.
If a wholesaler is selling you product without YOU having a resell certificate, and NOT charging you sales tax, than they are in violation of sales tax law.
If you purchase wholesale items to resell without paying sales tax than you are in violation of your local business tax code.
99.9% of ALL legit wholesalers will not even discuss pricing with you unless you have a reseller permit
Of course, this is general information. Most states have websites up to specificly answer questions in regards to business requirements. Wholesale 411 also has a secion that defines terms like reseller certificate and tax id #. These are 2 very different things. You do not need a tax id # to run a small business. You can just use your social security number. However, to legally do business in almost all states you are required to have a resell certificate.
Please go to the bottom of the topics section for further definitions supplied by NEON. -
You might want to consider getting a business license. It's not expensive, however I know it varies from state to state. Having a business license will open more windows for you. Most wholesalers will not even talk to you unless you have a business license. In order for you to go to wholesale shows to find great wholesalers you have to prove you own a business, by providing poof of a reseller's license, business card, or business bank account statement. Most places requires 2 forms of identification, that you own a business. In NC it's less than $20.00 to obtain a business license. You can still work out of your home with a business license. Most people I know do work out of there house to save on overhead cost.
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Oh, just a word on working from home. Did you know that some localities prhibit it? It is true. Most do not prohibit it though. It is worth your while in calling you local city hall and/or chamber of commerce and finding out for sure.
How dumb is that that they can prohibit you from running a home-based business? I thought we lived in America -- oops, my bad
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That is true....I'm from a small town in NC. According to the office in my town. You don't have to have a business license to run a business from your home. I thought that was strange, so I called the state revenue office to ask them. By state law you have to have a business license to resell, and work out of your home. It's just funny how the county law is so much different than the state law. So, you might also want to check with the state revenue service. They would be able to let you know if you can or can not run a business from your home.
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