[EvieBlack]

Hi,
I have been going through threads tonight, and I feel like my head might explode!! My question is about the resellers license, or permit or whatever it is called! What is it you exactly need to go into sites like TSC to get, what I hear is, great pricing? I know this has been asked before, but I forget and I can't bare to go through more threads!!

and after applying for it, how long do you have to wait for you to actually be able to use it??

Thanks,
EV

 

[kimura-mma]

If you have a registered business, you can apply for a Federal Tax ID Number. With that number, you can set up an account with companies like TSC and get wholesale pricing. You will also be tax exempt (just make sure you collect and report sales tax from your customers where applicable).

Once you apply, you should get it in a few days and can use it right away.

 

[EvieBlack]

well, it is definitely not registered, although, I did pay federal taxes on it as "hobby income". what is the difference between getting a federal tax ID number and a resellers permit? or are they the same? I don't have to collect sales tax on the items because nothing is over $30 and I don't have to collect it in NY.

 

[Hoodietees]

well, it is definitely not registered, although, I did pay federal taxes on it as "hobby income". what is the difference between getting a federal tax ID number and a resellers permit? or are they the same? I don't have to collect sales tax on the items because nothing is over $30 and I don't have to collect it in NY.

Here's what you need to do. First you need to get your Federal TIN (Tax Identification Number). I would recommend you setup your business as an LLC or Corporation. If it just you, the LLC may be the better route. You can apply for the number with the IRS online. Go to Apply for an Employer Identification Number (EIN) Online and follow the steps. It is free to get your TIN. Once you have it, you will need to register the business with the State of New York. Go to this site and follow the steps for naming your business, finding out if that name is available, and then registering your business with the State of New York and the fees involved Starting a Business in New York | Business.gov
Once you have done this, you will get your re-sale certificate and this will allow you to be able to purchase goods from manufacturers and wholesalers. You should receive your certificate within a few weeks.

 

[EvieBlack]

Thanks!!
Does the resale certificate automatically come with the TIN, or do I file for one separately?
In some of the threads I read, it sounded like people could just get the resale certificate. But that's not so? The TIN and the resale go hand in hand? (sorry, I am so business challenged!!)

 

[kimura-mma]

No, they are separate. The TIN/EIN is federal, you get it from the IRS. The resale certificate is through the state.

 

[EvieBlack]

oh, ok. Do many people just get the resale certificate and not the TIN? and do you need both to get into wholesale sites?

 

[kimura-mma]

Do many people just get the resale certificate and not the TIN?

Both are required to legally operate a business. They serve different functions, so I'm not sure what value there is in only getting one.

and do you need both to get into wholesale sites?

You will only need the TIN to get a wholesale account. The resale certificate is what allows you to legally resell goods in your state.

 

[EvieBlack]

THANKS!!! I feel like I have a bit of a better grasp on it now!! gonna go apply online now!!

 

[Hoodietees]

oh, ok. Do many people just get the resale certificate and not the TIN? and do you need both to get into wholesale sites?

No. You cannot get the resale certificate without the TIN. Even if you were to set your business up as a sole proprietor, you would still be required to obtain the TIN. Although you do not need a TIN to be a sole proprietor, you do need a re-sale certificate from the state in order to be able to purchase items directly from a manufacturer or wholesaler. Various states have specific regulations regarding who can buy items directly from a wholesaler or manufacturer all dependent upon exactly what items are being purchased and what you plan on doing with these items. so, for the purposes of a t-shirt business, it is necessary to get a TIN and re-sale certificate in New York. Further, as an LLC or Corporation should something happen that may result in a lawsuit, your personal assets cannot be touched. An LLC or Corporation is treated as a separate entity. Think of it as a separate person. For tax purposes, setting an LLC or Corporation (S - type corporation) gives you this protection and you are not paying double taxes. However if you set your busness up as a Corporation (non S type) you will pay taxes on the income you receive from the business via whatever funds you distribute to yourself and the business wil have to file a separate return based upon the income from sales. Income from an LLC or regular Corporation are reported on your personal income tax documents. However, you may be required to file an informational tax return for an LLC or S Corporation. The site I referenced should help you understand that better.

 

[Hoodietees]

Both are required to legally operate a business. They serve different functions, so I'm not sure what value there is in only getting one.


You will only need the TIN to get a wholesale account. The resale certificate is what allows you to legally resell goods in your state.

Kimura, this is not 100% correct. Many of these wholesalers and manufacturers need to see the actual re-sale certificate before you can open an account with them. So far I have had to do this with 4 different wholesalers I deal with on a regular basis. It just required me to fax or email a copy of the document to them.

 

[SeasonEnds]

Both TSC and Sanmar, who have warehouses within 15 minutes of me, required me to give them a physical copy of my vendors license.

 

[Twanabee]

You do not need a TIN number to start a compamy. You can use your SS number. You will require a state resale cirt. to open a wholesale account with most companies. How you file your tax is another issue.

 

[Violent_J]

Looks like I need to get a reseller permit.

I only got the business license. :/

 

[EvieBlack]

I called TSC and talked to a rep about it. he said I need both the business to be registered and a resellers permit. I thought it was just the resellers permit, but it's both. I have to do that as soon as I get a chance. I am hoping the process doesn't take too long once I do it.

 

[Hoodietees]

I called TSC and talked to a rep about it. he said I need both the business to be registered and a resellers permit. I thought it was just the resellers permit, but it's both. I have to do that as soon as I get a chance. I am hoping the process doesn't take too long once I do it.

It should only take a few weeks before you get your confirmation from the state of New York on your business registration and the subsequent resellers permit. They will come together. I did mine through NJ and I got the permit within 3 weeks after submission.