Licenses and permits are essential for all kinds of businesses and wholesale selling is not an exception in any way.
Like any other online business wholesale selling has also got lot of requirements which are to be met before starting the transactions.
Undoubtedly, wholesale clothing business has got a lot of potential for success as the demand for clothing never fade out in any season.
There are already thousands of successful businessmen in this niche and there is a plenty of room for the new comers too.
There is a set of factors that guarantee the businessman to reap huge profits in this business.
They are great quality, competitive pricing and trendy designs.
You can very easily convince your customers and sell the products if all the above factors are met.
Before plunging into the business, it is advisable to get a tax ID number.
The tax ID number is similar to your personal SSN but the difference is it is issued only for the businesses.
You can get the tax ID through an online application simply by providing the details of your business.
Tax ID is very important because you may have to show this during every transaction.
Another compulsory thing you must have for your business of purchasing and reselling goods is sales tax permit or reseller's permit.
You can get this from State Franchise Tax Board.
An authentic supplier asks for this permit every time.
Hence, from this attitude you can detect the fake ones who do not require the permit.
Besides the reseller's permit and tax ID number, you have to get a local business permit from the city hall for the local government.
Some states collect sales taxes from the business men.
In such cases the business men apply for a sale tax license which allows them to charge a sales tax along with the customer's bill.
The State Franchise Tax board issues this sales tax license.
You can run your business peacefully without any legal problems once you have all the licenses and permits.
Now, you are free to make transactions with the suppliers and customers.