A: Hi! Mele, how exciting that soon you will have your company up and going in Marion County, OR. Let me assist you on your up coming business, you need to start of by:1) DBA 2) Seller's permit 3) Business license Bliss will need to be identified by getting the a "doing business as" (DBA), what is that? you make ask. It is need it to file a trade name registration not using your name. To be followed, you need a sellers permit to buy merchandise wholesale and sell it in small amounts to continue retail. Bliss sounds like a company that will be doing plenty of wholesales so that it is very crucial to your business. Like anything else we need to have that business licenses in order to be up running properly, we need to have permission to do business that includes a payment of flat, annual business tax assessment.
The Business of Wholesale
WHAT DOES WHOLESALE MEANS?
The term wholesale as opposed to retail means that you buy and sell large quantities usually just for resale of these merchandise. In the United States, wholesalers need to obtain a wholesale ID also called a seller’s permit and keep records of all transactions for state sales tax report purposes.
A wholesale business is an operation where you buy large amounts of merchandise from a manufacturer and you sell it in smaller amounts to reseller’s such as department, high-volume and specialty stores, or directly to the consuming public.
So, for example, a manufacturer in China produces t-shirts by the millions. You enter into a deal to buy 1,000,000 t-shirts FOB Long Beach Port.
You pay them and they ship it to the USA. You pick it up and you store them in a warehouse. You advertise and sell small or large amounts of t-shirts to retailers or individual consumers.
HOW TO SECURE THE GOODS ARRIVE AND THEY ARE NOT DAMAGED
Make sure you buy with a letter of credit, insurance for the items shipped and a clause in the contract that allows you to inspect the goods and the bill of lading before your bank releases the funds to pay the wholesaler.
You will need to report all your wholesale transactions to the sales tax office of your state, either quarterly, semiannually or annually.
SAll wholesaler's need a seller's permit also called a wholesale ID because they need to register for sales tax mainly because wholesale includes tangible items. For instance, let's say your wholesale is selling auto parts, if you sell them to clients without a seller's permit, that is selling them retail charging them sales tax, collecting it and then turn it to the government using your sales tax ID number and as mentioned above. If you sell them wholesale, you need to ask the buyer to provide a seller's permit resale certificate.