How do I get a wholesale license? What do I need?How much does it cost?Where would I go?I want 2 buy clothing?
Hi this should be the process ..... First off -- I believe the protocol is just about the same for every state, however you should just google your state, seller's permit, resale license and see what the steps are. It should go something like this: a) first you have to think of a name for your business/store/whatever ...... (The Style Store) b) go to the the proper state office and file a "DBA" which means, "Doing business as," for example, John Smith 'doing business as' The Style Store c) you have to have your "DBA" published in a print newspaper (there are usually people who will do this for about $25-45 waiting outside of the office where you registered it) d) then you go to the state board of equalization (in your state) and apply for a 'sellers permit' IT IS FREE! (heck - they're making $$ on your sales tax so, ofcourse it's free) e) Once you have your sellers permit, you can go to the showrooms, etc..... and purchase goods at wholesale price, no tax, etc...... f) YES you will OWE money - (usually has to be paid every quarter year (every 3 months) based on a percentage or your sales -- being that you collected tax on your sales of the goods purchased at wholesale) g) You can't just have a 'sellers permit' to purchase clothes at wholesale (plus you have to buy clothes in certain quantities anyways), you have to pay state taxes. h) You will also have to obtain a business license with your county, I believe.
Who pays the sales tax, the buyer or seller?
In most of the states, the sales tax is the liability of the buyer but if the seller has nexus (legal presence in the state), then the seller has the collection responsibility. If the seller doesn't collect the tax and was obligated to collect it, then the state can assess the seller and make them pay the tax. It would then be up to the seller to try to collect it after the fact from the buyer. If the seller does not have nexus in the buyer's state, then the buyer has the primary responsibility to pay the use tax to the state of use. There are a few states that impose a seller's privilege tax where the liability is on the seller and it is a negotiated part of the agreement between buyer and seller as to whether the buyer has to pay the tax. CA has a provision like this under their sales tax that applies to in state sales (buyer and seller and inventory all located in CA).
Do local shopkeepers in india pay taxes?
There are two cases ,Let me explain this ,case IMost of the small shop keepers are exempted from preparing monthly tax returns . They are treated as small traders.Small traders are entitled to get small trader exemption in filing tax return .Traders those who have turnover less that 10 lakhs in a year are treated as small traders (in some states amount may differ).They are same as End customersWhenever we buy an item we pay tax (VAT) So when shop keepers buying an item they pay tax to wholesalers. Wholesalers will file the return showing these sales.When small shopkeeper make a sale , he will get the tax amount he already paid to wholesale as refund from customer.If he charge you MRP that means he is maximizing his margin.That doesn't mean that he is evading tax .Imagine a small trader who have monthly turnover 20000 Rs and earning 2000 Rs as margin , paying minimum of 1000 Rs to A chartered accountant or tax practitioners every month to file a returnIn order to avoid such inconvenience GOVT made this exemption to small shopkeepersSo tax evasion happen only if wholesaler fails to furnish his monthly tax return.Case IIIf the shopkeeper registered under VAT he should give you the proper bill.If he is not Giving bill ,beware there is chance of evasion of tax .He may omit the sales from his books of account. Proceeds from that sale will become black money .Now he is screwed !
Does my California resale certificate work out of state? If not, how do I buy wholesale in Nevada?
There is a difference between having them shipped and picking them up. If you go into a store in Nevada and buy something without tax, you would need a Nevada resale certificate. This is because you are taking possession of the items in Nevada. If you were having the items shipped to you from Nevada to California, then you could use the California resale certificate. This is because you are taking possession of the items in California.
What legal paper work would I need exactly do start a drop shipping store?
Dropshipping is such an easy business to get into!Glad you are looking into it. The only legal paperwork that you really need for a dropshipping business that you would need to obtain is a tax id (EID) It could be called different things in different states.A tax ID is called different things in different states in the US, but the purpose is the same. REAL Wholesaler Suppliers are not charging you, the drop ship wholesale reseller, any tax on the products they send to your customer. At the end of the year, they have to show the IRS why they did not charge you that tax. Your “Business Sales Tax ID number” proves that you are collecting sales tax on your customers’ purchases for orders shipped to an address in the state where you are based (but check with your state for their current tax rules). Your store or marketplace can automatically be set to calculate and track this tax rate. The Wholesale Supplier keeps a copy of your “Business Sales Tax ID number” on file, so that they are not liable for the tax on the products shipped to your customers.Depending on how much you make and how liable you want to be you can choose to go into LLC or sole proprietorship.. LLC you are protected if you run out of funds. However, it does cost money to set up.. Sole proprietorship you are responsible for everything…. but its fast and easy and no paperwork to set up.How To Get A Tax ID For Your Drop Ship BusinessI work at Inventory Source- we are the leader in Dropship Inventory Management. We can truly help you every step of the way… First, when you sign up for free with us you have access to over 100+ trusted and vetted dropship suppliers… Second, we can help automate your product sourcing, and third we can help integrate your store…Sign Up FreeLet me know if I can assist in anyway!