3 Reasons Why You Need To Get Your Reseller’s Permit And Tax ID Number
People are always trying to avoid getting their Reseller’s Permit and Tax ID Number. They’ll send Research Requests asking for suppliers who don’t require it, or will only sell on eBay and never open their own website because they don’t want to register their online business. Avoiding getting your Reseller’s Permit and Tax ID Number isn’t doing yourself any favors. In fact, it’s a real detriment to your business. Getting the proper documentation should be the first step in starting your online business – you should do it immediately, not try to avoid it.
What is a Reseller’s Permit?
A Resller’s Permit or Resale License is required if you sell or lease personal or tangible property: you need a Resellers Permit if you are a retailer or wholesaler of taxable items or services. The point of the Reseller’s Permit is to avoid paying sales tax on items you are going to resell (you don’t want to be charged taxes twice on the same item). Reseller’s licenses vary state to state: you can either apply for one through the many, many companies offering their services online (for a fee), or you can download the form from your state revenue agency website.
What is a Tax ID Number?
A Federal Tax ID Number or “Employer Identification Number (EIN)” is a number assigned to your business by the IRS. Any business offering products or services that are taxed in any way needs to get this number. To get yours, simply apply online at the IRS website. It’s very simple; in fact, you receive your number immediately and can download and print your confirmation notice. If you have any questions or concerns about Tax ID numbers, contact your nearest IRS Field office or call the IRS Business and Specialty Tax Hotline (800-829-4933).
3 Reasons Why You Need Your Reseller’s Permit and Tax ID Number:

1. Legitimate dropshippers and wholesalers require them.
If you want to work with a quality supplier, you need to provide them with your Reseller’s Permit and/or Tax ID Number. Suppliers who don’t ask for these are probably middlemen, not legitimate wholesalers or dropshippers. Thus, asking to work with a supplier who doesn’t require the proper documentation is basically asking to work with a middleman.
2. Setting up your business properly allows you to take advantage of tax breaks.
Small business owners get a ton of tax breaks. I don’t know why anyone who’s not selling designer marijuana would operate their online business “under the radar”, disqualifying themselves from all the government bursaries and benefits according to small businesses. As a business owner operating out of your own home, your phone, internet, and even a portion of your rent could qualify as write-offs, not to mention all the other expenses that come along with starting a new business.
3. You could be subject to fines and other penalties if you fail to register your business properly.
You can’t legally sell property without a Reseller’s Permit, and you’ll probably have to file your taxes fraudulently at the end of the year without your Tax ID Number. It’s a lot easier to set this stuff up in the first place than to scramble to get it later when an immediate need arises.













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