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I am designing a graphic tshirt line very soon that I will be selling at market and friends retail stores. What is the best advice for the business license and such? I need a wholesalers license I would think to order shirts in bulk. That requires a business license & EIN. When researching the wholesalers license, it says I cannot participate in any type of retail. What does that mean? I can't open my own store? Please Help! thanks in advance!
 

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If you plan to open a store and sell at market, you are a retailer. Find out from your state/county/city government about their requirements for a retail business license.

Same with your resellers permit. Wholesalers generally don't need one because they are not selling to the end user. Only you as the retailer are. So when you apply for your resellers permit, identify yourself as a retailer.
 

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hi,
i'm a bit confused by this as well.
here's my background...i just started my tshirt biz last summer. i have a small market, Greek people. but my product is unique and never seen before in the Greek community. so far i sell my shirts at church festivals and through my website (whick links to Etsy.) i am currently getting the shirts printed locally, but eventually want to print them myself.

i have an EIN number, but i was told by my accountant and a couple other people not to bother with a seller's permit/wholesale license because i'm not selling more than $10,000 worth of tshirts a year. while that is true, i am running into obstacles because i don't have a wholesale number (or whatever you call it).

i have approached a few local retail stores that cater to Greeks to sell my shirts and have been met with resistance. they are very interested in my shirts, but they want me to sell the shirts to them for only a few dollars more than what i paid for them. since i'm paying the tax and paying retail basically, it's expensive for me. i am also not buying large quantities of shirts, so it's expensive. i couldn't possibly sell the shirts to them for what they are asking.

i want to take the next step and get into the local shops, but i can't afford to do that unless i purchase the shirts at wholesale.

so my question is, is it worth it for me to get a wholesale license? is the accounting side a lot more complicated and involved? do i then have to charge tax at the festivals?

i have no brain for this business stuff. i am an artist! help!

thanks!
 

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I'm not sure where that $10,000 figure is coming from. I don't see any reference to it in the Illinois requirements. So, you HAVE to have one if you are selling to the end user (your market and Etsy). This includes sales to anyone in the state unless they themselves has a sales tax permit (the stores, for example). For your online sales, any shipments within Illinois is taxed.

Simple rule to follow: Buyer doesn't have a sales tax permit, you have to charge tax. Buyer has a sales tax permit, get a copy for the audit you might get, and you don't have to charge tax.
 
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