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No Licensing Needed Wholesale T-Shirt Suppliers?

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157K views 138 replies 53 participants last post by  HumnBird  
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#1 · (Edited by Moderator)
I was hoping maybe everyone could contribute to this thread. I'm one of the few who do NOT have a business license or tax ID yet because of funding and time restraints. My business is fledgling at best and I'm really just getting my feet wet.

So, to help those who are like me, looking to get started without all the paperwork hassles, I thought it might be helpful to have a list of suppliers that DO NOT require a sales tax ID or business license to be their customer.

I have two to start off with:

Welcome to Atlantic Coast Cotton Atlantic Coast Cotton - General apparel, accessories
http://www.ppsapparel.com

Pacific Sports ----- Retail Quality Wholesale Price Blank T-Shirts
ShirtSupplier - Apparel and Blank Shirt Wholesale
T-ShirtWholesaler.com - Wholesale T-Shirts
www.blankshirtstore.com
BlankShirts.com - Wholesale Name Brand T-Shirts and Apparel
www.alphashirt.com (I think they're affiliated somehow with Broder Bros.)
Wholesale Blank Shirts - JiffyShirts.com

I'm hoping to create a list with a LOT more suppliers that are more "startup" friendly.
 
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#3 ·
Well....to be honest, I was going to go through this thread as it's added to and update my original post to include all the links added by others. It seems that there are more and more folks looking to start up without "legally" starting up. I need to see about $2000 - $4000/month in sales before I go out and set up with the state and federal offices. ;)

I've started businesses in the past without having a semi-steady income stream only to find myself burned at the end of the year thanks to taxes and such that I could have avoided by taking a little more time to go through the "official" process of registering as a business. I'm sure it's my own ignorance, but still....some of us don't want to register legally as a business while we're still feeling the whole thing out.
 
#4 ·
It seems that there are more and more folks looking to start up without "legally" starting up.
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To be honest, I don't really want to encourage people to start up "illegally".

If you're selling t-shirts, many states require you have a seller's permit by law so you can pay taxes.

It's best to get started the right way, because the penalties can be severe (fines and jailtime)

It doesn't take that long to become officially registered as a business and to get the proper licensing.

If you're "selling" while you're "feeling it out", you're a business and you should definitely be registered as one.

It's not scary at all. Usually only takes a few steps. Most cities and states have forms available online that you can fill out or mail/fax in.

I think people think "officially" registering is more complicated than it really is :)
 
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#5 ·
well, there's also a limit to how much you can earn before you are legally obligated to file it as income on your taxes. Maybe I'm just trying to get some samples out there before I commit to anything. I need 4 dozen tees. Oops, now I have to register, file, etc just to order shirts. No, that's not right either.

Either way, I'd like to see a few suppliers that are open to non-licensed businesses. ;)
 
#7 ·
well, there's also a limit to how much you can earn before you are legally obligated to file it as income on your taxes.
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I'm not talking about income taxes, I'm talking about sales tax :) That's usually the license that's required to buy t-shirts wholesale from the places that ask you to register.

There's no limit you can do "under the table" to not require a seller's permit.

Most states (that have sales tax) require them if you are selling anything. If you have a website selling your own t-shirt designs (not through a fulfillment company), then you need to be reporting and paying sales tax. Otherwise you are risking big fines and possible jail time.

Maybe I'm just trying to get some samples out there before I commit to anything. I need 4 dozen tees. Oops, now I have to register, file, etc just to order shirts. No, that's not right either.
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Again, I think you're making it more difficult than it really is :)

Once you have your seller's permit, you can register at just about any t-shirt wholesaler. you don't have to get new permits and new "filings" for each wholesalers.

But to bring this back to your original question, here's a couple more places:

epacificsports.com
shirtsupplier.com
t-shirtwholesaler.com
blankshirtstore.com
blankshirts.com
alphashirt.com

A lot of the ones that you find when you search for wholesale t-shirts or blank t-shirts in google don't require a seller's permit.
 
#9 ·
Hey guys, just a quick "unofficial" question. In PA, clothes are not taxed, but in other states, they are. Do you have to collect sales tax if you live in a state that doesn't tax clothes?

Just wondering, I know you're not accountants (well, maybe some of you are) but you folks are experienced business people. Thanks if you have some insight... :)
 
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#14 ·
I'm just getting all my operating ducks in a row so that when I go to register my business, get all the permits, etc, and choose my accountant, I can focus on simply getting through THAT process by itself.

I like to have the option to offer a sample here and there, and pick up a quick $100 for a small job without the paperwork headaches. I've had a small biz before, and like I said earlier, it became too much at one time for ME as one person to handle. It seemed like I couldn't make a product for a customer because I had to go to this govt. office or call that accountant, etc etc etc.

Anywho..........anyone else know of suppliers that don't require permits to purchase from them?

;) Thanks Rodney for all those great links.
 
#15 ·
I like to have the option to offer a sample here and there, and pick up a quick $100 for a small job without the paperwork headaches
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If you're picking up $100 for a small job, you are in business and you're not just "testing the waters" :)

If you aren't registered, then you may be doing business illegally.

I wouldn't recommend that anybody follow those steps.

t seemed like I couldn't make a product for a customer because I had to go to this govt. office call that accountant, etc etc etc.
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I think that your perception may be very different from how easy it really is to get registered and do it right from the start.

By the time you go shopping and research all the places you could get a t-shirt without a permit, you could have easily registered and done it all the legit way :)

You don't have to be a big corporation to do it. It's not much for just one person to do. Ricky above did it recently, and he's just one person. I did it, and I'm just one person.

Many people here are regular folks that took a couple hours out of their day to get the couple of licenses required. Really, it's not hard at all :)
 
#17 ·
I have no doubt that you've done it before :)

I wasn't so much as trying to convince you to change your ways (as you said, it's probably best to agree to disagree), I was more trying to post for the benefit of the hundreds of other people that may read this thread and think that not registering is a good idea and may think that getting a seller's permit is something really hard to do.

I just want to assure people that it's not.

I also wanted to make sure people know there are big penalties for selling without a seller's permit.
 
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#20 ·
I am new to this forum and have been reading posts for several weeks, just trying to learn more about the T-shirt business. This line will go along with my other products for " Glitz" which I will sell at expos, shows and events.
I am also just starting to "dabble" in this as a new possible business. I just sold a very lucrative business that became to big and I would have had to hire employees to keep it. Here in our state and I believe all states you can have a "hobby business". as long as you pay taxes on any actual profits at the end of the year, you are not required to be a registered business at all. This is exactly how many crafters run a business without any tax ID numbers etc.
Once you do find your business operating with a profit on a regular basis then of course it is a good idea to become a real business. Of course I am sure my age has much to do with my views as I am in my 60's and have no real desire to venture full time into anything unless I see a clear vision of becoming a brick and mortar Boutique. I do want to thank everyone for sharing their ideas and experiences, this is truly a wonderful and informative forum. My hopes are that my single input does not insult anyone as my intention is only to share my experience as well.
 
#21 ·
Here in our state and I believe all states you can have a "hobby business". as long as you pay taxes on any actual profits at the end of the year, you are not required to be a registered business at all.
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You may want to double check to make sure that sales taxes are not also required to be paid.

I know in California, if you're making sales, you have to collect/report/and pay sales tax.
 
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#22 ·
Sales tax is required on anything you sell. Here in Missouri, some counties require you to collect sales tax on garage sales! Collecting sales tax does not necessarily mean you are in business. If you do get permits and business tax ID numbers, please be aware you must file a business schedule with your taxes every year and if you lose money for three years you put up red flags that DO trigger an audit. The government looks at business much differently, Their philosophy is " Why would you stay in business if you are not making any money". I would not do anything illegal, but I certainly intend to not become a business without trying out the product/s and thoroughly researching what marketing will work. Getting an order for 100 shirts may be all you get the entire year, this would not be lucrative for any business. I intend to start as a " Hobby Business" and will indeed pay taxes on any profits. I will not become a retail business until it becomes profitable to do so.
 
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#23 ·
Not sure about all states but in Ohio you can make something like $600 before you have to file it on your taxes.

I Also ran into the end of the year tax problem once. I thought I was doing really good and set aside money for taxes at the end of the year and everything. I was painting cars, motorcycles, etc. which is a service so the tax situation was different. I was working my butt of and paying a lot of extra taxes due to having a full time job as well. It put me into a different tax bracket.
 
#24 ·
I think there's some confusion here.

There are different types of taxes being discussed.

The type that sometimes have a minimum is "Income Tax" (like from the IRS). Sometimes it's set at $600 before you have to claim it or something like that.

The type of tax I'm talking about that you CAN'T avoid is "Sales Tax". That is collecting tax from sales made in your state and paying tax back to the state that you collected.

There's no minimum "grace period" on "sales tax" that I know of.
 
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#25 ·
I thought the original question was whether or not a liscense was required to try out a business on an experimental basis. Of course everyone must pay sales tax business or individual alike if they sell anything retail, that includes flea market vendors, crafters etc. However not eveyone must have a business liscense, again ex: flea market vendors, carfters yard sales etc.
I do hope that helps to clear any confusion I may have contributed to in this thread.
 
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#27 ·
Rodney had a lot of good points in his posts.

Just to clarify: the reason a lot of 'wholesalers' won't sell to you without you providing a sales tax ID is:

1) They aren't a retail outlet and don't want to compete with their retail customers by selling a handful of shirts here and there.

2) They are required to CHARGE you sales tax if you don't prove you are a retailer and will be collecting whatever sales tax is required on your finished product.

If you are in the 'planning stages' of your business, I'd say having to pay a little more for your 'sample' shirts is just the way it's going to be. Once you are an 'official business,' it will qualify you for better pricing.

And, in states where clothing isn't taxed, it's easy to fill out the form ... it asks for 'gross sales' then 'sales excluded from tax' -- you pay the difference. If you have little or no tax liability, some states will put you on a semi-annual or annual filing.
 
#28 ·
I just wanted to add, as this seems to come up, Alpha Shirt will give case pricing when the order is phoned in. They can't do it for online orders as they adjust it manually. I've gotten orders out of Philly for $30 that I needed same day, and they've given case pricing on the items. Just have to ask for it over the phone. Good luck everyone! Happy t-shirting! :)
 
#29 ·
The general rule (emphasize general) is that sales tax must be collected on all sales delivered within "your" state. There are exceptions. It doesn't matter how small the sale. Obviously if you live in a state that doesn't collect sales tax on clothing you are not required to collect it. In my state...maybe yours, maybe not...30 days after you've made a sale sales tax must be reported and paid. Failing to do so is a violation of state law. It doesn't matter if your a hobby business or not. Always, ALWAYS, check with the laws in your state. My brother was hit with a $5,000.00 fine and penalty for failing to pay sales tax on belt buckles he was engraving and selling at gun shows. He was nabbed at a local gun show...not a pleasant day for him. Couple state treasury workers came up to him and demanded he provide his retail sales tax id...he looked confused. They copied down his driver's license and he received a summons in the mail 3 days later. Better safe than sorry.
 
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#30 ·
Legal is the way to ngo. All you need to do is register your company and make it official. You do not need to file taxes until you start earning a certain amount of money after your exenses - which can take some time. It may be worth talking to an accountant before making a decision about not registering your company. All you need to do is fill out some paperwork and you can register fro a sole proprietership or the like and you can do it by yourself. Really, not a big deal at all!
 
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#33 ·
This is a very informative and well discussed thread. And I found the info about blank-wholesalers very helpful.

On the topic as to going through the process of getting all the necessary paperworks done, I personally think I would need a tutor for that whole thingy. And I sure hope that tutor would accompany if ever I need to go to local offices to apply, because the words they use int he forms are all too overwhelming.
 
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