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If you are a US citizen purchasing wholesale goods from a supplier within the US, then you will probably need a resale certificate or license from the state in which your business is located. A resale certificate or license enables you to purchase goods wholesale without paying sales tax.
Businesses that buy wholesale do need to have a tax ID. Legally, you must provide this number when you buy from a wholesale manufacturer or distributor. The IRS issues your tax ID number to you after verifying that you are a legitimate business that qualifies for tax exemptions.
Apply for an EIN Number You can obtain one from the IRS, which is the Internal Revenue Service. You can apply for your tax identifier number online, and the number will be issued to you immediately. You can then use it to set a bank account for your business and accounts with multiple wholesale distributors.
Can I use my EIN number to buy wholesale? The answer is NO and let me describe below the feature of each service. These are two entirely different documents and issued by the different departments. The E.I.N is used to open a bank account, whereas sales tax number is used to buy wholesale items to resell.
If you're in the business of selling things online, chances are you need to get a state tax ID number (also called a sales tax permit, reseller certificate or similar). However, if he charges his customers for parts, he may be required to collect sales tax on those parts.
Contact your state's tax office to apply for a sales-tax license. Applications and fees vary depending on the state [source: Seller Permit]. Obtain a wholesale license. Contact your state's tax or revenue office to apply for and obtain a wholesale license.
A wholesale license is same as a seller's permit. The following applies to all businesses, including online, internet, home-based or home businesses. If you buy or sell wholesale, or if you want a tax ID to buy wholesale and sell retail, you will need to register a Seller's Permit.
To register for your Seller's Permit, you can use the California Department of Tax and Fee Administration online registration tool or apply in person at one of the field offices. In order to complete your registration, you will need: Your social security number (corporate officers excluded) Your date of birth.
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