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Old 12-24-2007, 02:00 PM
Dunkindan Dunkindan is offline
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Default Buying wholesale, What are the requirements?

Hey all,
I recently started reading a lot of books about selling on Ebay. For years I have avoided it for some reason thinking it was too competitive. I now see that there are 20 million individuals making full time incomes with it. I donít believe its saturated anymore and I want it. I need some clear advice though.

As a resident of California I want to know how I can get a tax id number so I can be a legitimate retailer to wholesalers or manufacturers. My question is how can I obtain a tax id in order to buy wholesale in California? I have posted on a few other sites and I get very vague answers like, go to the Cal Board of Equalization and things like that. If I only plan to sell on Ebay am I to charge tax to California residents who buy? Does a state tax id require a business name or can I apply for one working as an individual?


Also, would wholesalers not want to sell to individuals? Has anyone bought from wholesalers before? What are there tendancies? What is the best plan that I can take when buying wholesale? I will work strictly from my garage at first. What is the minimum things required to buy from wholesale or manufacturers? I will first start with wholesalers because I hear that manf. Only sell in huge quantities and usually wont speak with any retailers.

Please no messages about how ebay is flooded or its hard to find wholesalers, bla bla bla I would just like the information on how and what is required to buy wholesale! Thanks all. Sorry if this is lengthy and sounding abrupt, Iíve just written a lot and got a lot of responses that were not too much in depth. Someday when I learn more Iíll help by passing on my knowledge too!
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Old 12-24-2007, 07:30 PM
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pete pete is offline
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OK, short and sweet.

Yes, you must have a sales tax account with the BOE. You can apply for this on line here - http://www.boe.ca.gov/sutax/sutprograms.htm

You can find out more about when to charge and when not to charge sales taxes here - http://www.sbfaq.com/state-sales-tax.html This is a good explaination of sales taxes in general.

You MAY also need a local business license. This varys from city/town/county to city/town/county, so I can not give you a definitive answer. That same site, different page will help - http://www.sbfaq.com/business-licenses.html

Some wholesalers will sell to anyone, others want to see your tax account number and/or business license before selling to you. Some will also want a Federal Tax ID Number. This will be either your Social Security Number or an Employer Indentification Number, which you can get free in just minutes at www.irs.gov

As a sole proprietor, you may have to get a T/A Trading as name or a DBA Doing Business As name and register with the state or your locality. Again, every state has different rules. If you get a DBA and don't want to use your SSN you can get the EIN and use that with suppliers.

Finding suppliers who are real wholesalers will be your biggest problem. The net is crowded with "middlemen" who claim to be wholesalers, but are just taking orders and passing them on to dropshippers to actually fill the order.

Scammers abound. You must check and double check before buying. And find something that not everyone and their Aunt Sarah is selling. Or trying to sell, anyhow.

You can find some sources here, many wholesalers who will talk to you - Wholesale Sources Directory
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Old 12-25-2007, 05:57 PM
Eduffy Eduffy is offline
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The best way to go if you live in California and want to start a small business is to move to another state.
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Old 12-28-2007, 01:14 PM
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My advice would be to find a prove your product first before you hassle with the government. The government/red tape will consume a huge amount of your time. If your product should flop, everything you did to setup your company will be for not. Prove your concept, then worry about the gov't.

Also, my company deals specifically with a lot of ebay powersellers. Many of which operate as sole proprietors under their SS# rather than getting a fed. tax id. We have an entire section of our website dedicated to powersellers and the services we provide them, along with a lot of useful links. Feel free to check it out: ebay fulfillment
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Old 12-28-2007, 01:16 PM
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Quote:
Originally Posted by Eduffy
The best way to go if you live in California and want to start a small business is to move to another state.
LOL! Amen
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