Wholesale Drop Shipping of Boutique Baby
and Children's Wholesale Clothing & Gift Products

Customer Care - FAQs
Policies - Shipping

Why Get a Business License or Tax ID?

 
There are three reasons for having a sales tax ID number (also called a Resale certificate or Resale Number)

1. It's the law. If you sell goods on eBay or the internet and ship them to someone in your same state, then you have to collect (charge the buyer) sales tax and pay that tax to your state. However, if you sell less than $4 million in annual sales, then you do not have to collect or pay sales tax on sales where you deliver the goods to an out-of-state address. For example, if you live in Virginia and you sell something to someone else in Virginia or to someone out-of-state that asks you to ship it to someone in Virginia, then you need to collect and pay sales tax to the State of VA. But, if you sell the same item to someone in Florida, you can forget all about the tax.   The only exception to this law is if you are selling used goods.

2. You can purchase items without paying sales tax on them. When you buy something that you plan to resell, you can purchase it without paying sales tax. But it must be for resale. For example you can not buy a new computer to use in your office and not legally pay sales tax.

3. Wholesale companies require a sales tax certificate . Legitimate wholesale companies will ask for a copy of your resale certificate before they will sell to you at wholesale prices. Besides wholesale companies, in most states you need it to open a commercial checking account. Every wholesale trade show and merchandise mart requires a copy before letting you in.

If your state does not charge sales tax, (Oregon and Idaho for example) then it will probably issue some type of Business License that will serve the same purpose for wholesale companies.

Getting a sales tax number is very easy, you just need to contact your State Dept of Revenue and inquire.

WholesaleKid.com sells only business to business for the purpose of resale - thus we are required by law to have Sales Tax ID on file for all of our wholesale customers.