One of the common myths about the wholesale business is the need for having a re-selling license or tax I.D in order to achieve wholesale success. Now, getting a business license I.D is necessary if you incorporate your wholesale or re-selling business. Not only that, but it is important to get a business license if you plan to sell $ 100,000 or more from your retail, wholesale or re-selling business.
However, there is no need to get a business license simply to be able to purchase wholesale as there are many wholesalers and distributors that will cut you deals for wholesale merchandise in single or in bulk amounts without having to violate the law or without to carry a reselling license- of course depending on your state. As always, that will solely depend on the state and country you are currently allocated.
To be sure, there are different laws that regulate reselling and wholesale businesses in many states in the USA, however, that does not mean you need a business license to sell wholesale merchandise. For example, Maxam Wholesale is a nationally known manufacturer and wholesaler that has been around for decades- and best of all, they do not require you to have a business license or tax ID in order to purchase their wholesale merchandise. Meaning that you can build an Internet mini-mall virtually in few hours depending on your web technical experience or you can simply outsource such a job. It is that simple.
Granted, most of the wholesalers with websites where you can apply to be a dealer require that you enter a tax ID, re-selling license or both. However, an easy technique you can use to eliminate this kind of hassle is to establish a relationship with the distributor or wholesaler by calling them, rather than applying online with their regular forms. The phone is where the magic happens in my experienced.
You get to speak with the person directly instead of with a so-called mummy that I like to call, emails. In a nutshell answer, simply let the wholesaler know that you are very interested in finding out various catalog wholesale prices in order to place orders that day. You definitely need a little more than that, but you definitely get the picture. Go as creative as you would like and test the results and gain experience. That is everything I do in my wholesaling.
More than 90% of the time the wholesalers and distributors will either send you their wholesale catalog through the mail or, better yet, they will give you a username and password immediately so you can access the prices in their online catalog. Depending on how you presented and requested the information. Same situation that happens in regular business offline with communication, definitely applies online in many of the same ways.
Once you have done such steps, you can start buying directly from the wholesaler or distributor online or by phone without owning a business license or tax identification number. But remember, you should always check with a legal advisor to assure yourself of the state validity to sell tangible merchandise. What happens if they reject your catalog request? Simple. You provide them with your social security without them having to ask for it. This will show your seriousness about dealing with them and, more often than not, will get you up and running.
In conclusion, needing a business license for an unincorporated start up wholesale business is a myth in many countries and even states. You should always look the information directly from the source. I started as a sole proprietor when business and profits were small, with time, you will probably have to upgrade your status to LLC, Corp or own a re-selling license because of the growing of sales. Start cold calling every wholesaler and distributor you think will be profitable for you, and start getting results instantly.