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I recently signed up for a wholesale account for Alstyle and they are asking me for a resale number. What the heck is that? I live in California, do I need a CA license number?


P.S. I know nothing about this. Please be as clear as possible. (noob here!)
 

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I recently signed up for a wholesale account for Alstyle and they are asking me for a resale number. What the heck is that? I live in California, do I need a CA license number?


P.S. I know nothing about this. Please be as clear as possible. (noob here!)
To buy at wholesale you need a resale license issued by your state (business license), some companies only sale at wholesale. That said, I assume you are a business?

Hope this helps.
 

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Business as in I buy in wholesale, print them, and sell to my customers? Yes.

But Business as in I opened a store to sell my clothes? No

I normally use Hanes but I want to use higher quality fabrics and use my own tags. Can I still appl for a resale number? If yes then how?
 

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You may be able to do this on line. Not sure about CA. It costs me $10 bucks a year and I have to file a quarterly tax form. Check on the CA web site for resale permit.
 

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Great info Binki! Thanks!

Do I need a seller's permit if i'm operating online only? I didn't see that aspect covered? What's the difference between a seller's permit and a reseller's permit? Is there?
 

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Great info Binki! Thanks!

Do I need a seller's permit if i'm operating online only? I didn't see that aspect covered? What's the difference between a seller's permit and a reseller's permit? Is there?
Yes you need one no matter where you are selling if you sell to people that need to pay sales tax.

The two terms are synonymous.
 

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Great info Binki! Thanks!

Do I need a seller's permit if i'm operating online only? I didn't see that aspect covered? What's the difference between a seller's permit and a reseller's permit? Is there?
There is no 'reseller's' permit in the People's Republic of California (PRC), it is a sellers permit. It is for 2 purposes: 1. to purchase goods for resale without paying sales tax, 2. to collect and report sales tax on retail sales you make within the state.

If you are going to have sales that are subject to sales tax OR if you are going to purchase wholesale without paying sales tax, you will need a sellers permit.

If all of your sales are out of state or wholesale (to someone else with a sellers permit for the purpose of resale) then you will report those figures to the BOE each reporting period.

The reporting period will be any of monthly, quarterly or annually and is determined by the BOE based on your estimated sales during the first year and afterward by your actual sales the previous year.

You can file online and pay online. It is pretty simple any more. No more 6 page forms and difficult to understand calculations to go through.

There is another reason for the sellers permit that is just coming to light. Any purchases that you make for your business that would otherwise be taxes for sales tax that are not are supposed to be reported when you file. So if you purchase a computer from an out of state source and don't pay PRC sales tax then you will be assessed a 'use tax' for the purchase which, coincidentally, is the same amount as the sales tax. The friendly folks at the BOE are auditing every business in CA that has a sellers permit with a personal visit. They started a few years ago in San Diego and are working their way north. They call it 'educational' but it amounts to nothing more than a shake down.

http://www.nctimes.com/business/article_351e9317-4b1f-5293-821c-a4ecbe664f6e.html
http://www.pe.com/localnews/stories/PE_News_Local_D_boe06.1749f53.html

Next up? All non taxed service providers will be given a sellers permit number for the same reason, to collect use taxes.
 
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