You can buy wholesale goods if you have an employer identification number (EIN) and a wholesale license. The government requires these to track sales tax, income, and business activity.
Licensing and Tax Identification
Do I need a license to resell? All companies require a business license to sell online or in stores. This helps the government track enterprises and tax revenue in the area.
Can I buy wholesale without a tax ID number? Businesses buying wholesale need a tax ID.
Is a seller’s permit the same as a wholesale license? Wholesale vendors need a seller’s permit if they buy and sell taxable goods. Retail stores need the same permit.
Obtaining an EIN
Applying for an EIN
How do I get an EIN number in Virginia? Apply online through the IRS website or file Form SS-4 with the IRS.
After Obtaining an EIN
What’s the next step after getting your EIN number? After you have an EIN, you can open a bank account for your business.
Can I get a credit card with my EIN number? In most cases, to get a credit card with just an EIN, you’ll need to meet other requirements, such as minimum monthly revenue or cash in the bank.
Is an EIN number the same as a wholesale number? No, you can’t use your EIN number to buy wholesale.
Differences and Uses
Is a wholesale number the same as EIN number? No, they are not the same, but your EIN will remain with you throughout the course of your business. The authority to charge sales tax and the ability to purchase goods without being charged sales tax are two very different things.
An Employer Identification Number (EIN) is also known as an FTIN (Federal Tax Identification Number). An EIN number is unique to your business and identifies your business to the IRS when paying business taxes.
You can obtain an EIN from the IRS, which is the Internal Revenue Service. You can then use it to set a bank account for your business and accounts with multiple wholesale distributors.
Wholesale, Taxes, and EIN
Your Employer Identification Number (EIN) is your federal tax ID. These are the steps you should follow to become authorized for tax-exempt wholesale purchases: Apply for an employer identification number (EIN). Apply for a Certificate of Exemption.
There is no difference between a Sales Tax Number, a Sales Tax ID, or an EIN – they are exactly the same thing.
EIN and Business Operations
An Employer Identification Number (EIN) is a unique nine-digit identification number assigned by the Internal Revenue Service (IRS) to businesses operating in the United States.
An EIN (Employer Identification Number) is a unique nine-digit number the IRS uses to identify your business for tax reporting purposes. You’ll need an EIN if you want to open a business bank account, unless you’re a sole proprietor or single-member LLC.
Wholesaler Profit Margins
The profit margin of a wholesaler per piece may be smaller than a retailer but he actually makes more money as he sells in higher quantities than a retailer.
Apparel retail brands typically aim for a 30% to 50% wholesale profit margin, while direct-to-consumer retailers aim for a profit margin of 55% to 65%.
Getting a Wholesale License
In order to buy items wholesale, you will need to obtain a wholesale license.
In order to obtain a wholesale license, you will need to contact your revenue office or state’s tax office.