Sellers Permit aka Game Changer
Reading time: 3 – 5 minutes
In different states it’s called different things but this is the best permit ever created. In some states it’s called a wholesale, resale certificate, reseller permit, state id or sales id! This is the permit that allows you to buy from places at WHOLESALE PRICES! This is the key permit that is missing in everyone’s street hustle. See most people are happy to find a CONNECT but that’s just someone who has a Seller’s permit and is buying things at wholesale prices and selling them to you. The Seller’s Permit is the essential permit that you need to have in every and any business you plan to open. Retailers need this permit like their life depended on it and most of your online companies should have this. This permit allows you to buy products at wholesale prices and not even pay taxes on them!
How do I Get a Sellers Permit (This is why you need a State ID because your state usually issues these.)
- Google your State and sellers’ permit and they will tell you where to get one. They are usually issued in a local department of equalization office.
- The Seller permit is issued for FREE, all you have to do is have your Drivers License (for verification) BUT, it would go over better if you brought your Tax id(EIN) and state id paperwork.
- Some States will ask you crazy questions because they want to make sure you aren’t selling stuff they want an extra permit for like tires, laptops and LCD’s!
OK! Now I got a Seller’s Permit what do I do with it?
- Look on the bottom of the product for the name of the company you want to buy products from and give them a call and place a order.
- The company doesn’t have to just be in your state it can be in any state.
- They will ask you to fax them a copy of your state seller’s permit
- Now you are in business! PERIOD.
- Go to Sam’s Club and they will give you a a wholesale price instead of what the average person pays and tax free!
This is the permit that every business uses if they are selling anything to you. This is how they get clothes at low prices and sell them at retail for higher. Your liquor store, your grocery store, your electronics store, your hair supply and in fact everyone who is selling you anything in a store has a SELLER”S permit. This is how they are making money by buying low and selling high! You need to get a Seller’s Permit just for the hell of it!
I would be doing you a disservice if I didn’t warn you NOT to abuse it!
- You get things at wholesale prices to resell them not to build up your wardrobe.
- If you are opening up stores, you need a seller’s permit for each location you operate business in. As the seller’s permit only has a address for that one location. You will need to file for another if you operate more than one.
- You must keep track of your records (purchase orders and receipts)
- You are required to collect and give the sales tax back to the state
- You are required to file a tax return!
All this stuff is worth it now that you are able to sell things online and in a store. Walmart has a resale permit and so does the the immigrants who are selling you malt liqour. This is why I called it a Game Changer because if you don’t know NOW you know! This is how you can open up shop and serve our own folk! Most cats think it’s some mystery but this is the only permit you need to get started with getting cheap prices for everything you see selling to our folk!
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Freeman! Great and informative post! Learning something new everyday!!
I’m searching online but do you know, offhand, if this is the same as a peddler’s license?
I think in new york just having a tax id is enough because when would buy handbags wholesale, that’s all they would ask me for.
@JR – Glad to be of service. Now lets get it!
@Keish – OK if you are operating in New Jersey you need to register your business first and get a Certificate of Authority (which is their state ID) and they will assign you a NJ ID#. Then in NJ they call it a Resale Certificate. The form number in NJ is Form ST-3. I don’t know if it’s called a peddler’s license by people on the street but it’s the legit names is Resale Certificate.
@Keish (2) – Nope the Tax Id is not the resale certificate. In New York it’s Form ST-120. Again you have to register with the state of New York and then apply for their resale certificate.
NOW you only need one! You don’t need to get one for each city as this license just allows people to buy things wholesale. Registering in each state is not necessary as the guy who buys apples from Montana to sell in California will not have any Montana tax to collect. But in NJ you might need to get both as most likely you will go through the tunnel to sell goods in manhattan. If you were staying in Jersey you don’t need to worry about NY.
Peddler’s license is probably another permit to be a street vendor. Remember this license is to buy things wholesale. If the company you are buying from is on the up and up they will ask for this permit before they sell you anything. If someone doesn’t ask you for this most likely they are BS wholesalers. It’s like Supermarkets saying they are wholesalers when in reality they are buying at wholesale a regular customer can never buy at wholesale prices at it’s AGAINST THE LAW. This permit removes all the BS.
NY resale Permit – http://www.tax.state.ny.us/pdf/1999/fillin/st/st120_699_fill_in.pdf
NJ resale Permit – http://www.state.nj.us/treasury/taxation/pdf/other_forms/sales/st3.pdf
Damn, I hate to feel like I can’t do any research on my own because I read all of this online earlier and was sooooo confused. Thanks so much for the clarification :~)
Ive been using my sellers permit for my ebay business without a second thought. Once you have it you kinda take it for granted, so thanks for putting the cats that didnt know about this on! My worst fear tho is that with the FTC encroaching on bloggers, are they gonna create something like a special sellers permit (in addition to one for physical businesses) for virtual businesses
@Keish – It’s alright as you never had to do it before so it doesn’t bother me. I just know NJ and NY because I used to live there near you so I know where to go and who to talk to. Take it in stride as now that you know you’ll never have to do it again.
Now remember for all these permits you have to get your company registered otherwise they will not give you anything. You have to have a company and your tax id to start interacting with the states.
@AP – You know they want to find a way to tax all transactions on the internet. That’s why it got elevated to the feds because one state cannot infringe on another so only the Feds can pass legislation. Right now it’s just babble we just have to wait until they actually make it mandatory as I’m sure WordPress and Blogger will have to add a space for this.
I have to start at the beginning and read more carefully, though, so I dont trip myself up. I call myself speed reading & miss alot of info in the process. Thanks again :~)
Like I said once you got it you got it and you’ll never have to do it again. So you just have to fill out the documents properly and you’ll have it forever. If you are having problems just give new jersey dept a call as their number is usually on the bottom of their docs. Someone will explain it all to you.
Hey I wasn’t a genius at this either when I started I just called the numbers and had them hold my hand through it.
that briefly crossed my mind earlier but i punked out thinking about aggravating the already angry state workers. lol u right, tho, alot of that written mumbo jumbo can be explained quickly & easily
It’s their job so why not use them? I mean we got to get over being scared of something when we have nothing. We can spend days messing it up or we can ask.
It boils down to me to just getting it done. They know and I need to know so let me get it.
True. Well have a great weekend :~)
Keish,
The peddler license you are referring to is called a “vendor license” which is seperate from a reseller license.
The “vendor license” is what allows people to do things like sell pigeon meat disguised as hot dogs on carts in Manhattan or pass out business flyers.
If you are a veteran, you can get a vendor license for free in some places, I believe including NYC.
The reason why I know about this because I’m working on an SMS service and will contract the flyer service to cats who need a “vendor license” to pass out flyers in NYC and LA.
Ok, thanks guys, I got it now. The vendor/peddler license is for ppl to sell / hand out things on the street without getting ticketed.
The Resale Cert / Sellers Permit is to buy things in bulk. Is this all I need to buy and sell???
And, if I only have a Sam’s membership, will I get charged a higher price than if I go into Sam’s with a Resale Cert?
NOPE in fact Sam’s club will cost you less because they have wholesale prices for vendors. They want the guy who owns the restaurant to come there so they like people with Resale permits. You’ll see they’ll give you a discount off the price listed as it’s a wholesale price. Plus you won’t have to pay any taxes!
Sounds good, I’ll let you know how it works out for me :~)
Does a business have to be a entity (llc,inc) or to get a resale cert or just have trade name with the state on file until the entity is filed? Has anyone went into or call sam’s club about wholesale pricing? Does it matter what you can buy or can anything be purchased?
You can be a sole proprietorship so NO you don’t have to be a LLC or a INC to get one. So EMAN dba About Mines Barber Shop can get a wholesale permit too.
Usually they change the prices at the register because all the people who buy wholesale are the people who own restaurants. So they want them to come in there instead of getting tomato sauce from some other place. I haven’t been in Sam’s Club in a while but I know they used to have wholesale prices. Give them a call and I’m sure they’ll let you know.
Anything can be purchased wholesale from furniture to candy bars. Wholesale just means you plan to resell it so they give you a cheaper price and they do it without taxes. The state assumes your going to collect taxes when you sell it so it’s a lower price and tax free.
Also can I register under a sole proprietor for (EIN,SALES AND USE TAX, RESALE CERT) And later change the entity? I need to get started to make some chips.
Once you change the entity it needs it’s own numbers and permits. There is not way to transfer them. So you can start the other and then stop using the Sole Prop and call to cancel the IRS number and every permit.
So start the Sole Prop to get off the ground and then start the S-Corp once you get the ball rolling. Once the S-Corp is set up you can do all the permits while your Sole Prop is still doing it’s thing.
So one doesn’t cancel out the other. So there’s no timing issue.
Sams club states they do not give a wholesale price. All they give tax free with sellers permit,resale cert, etc. Where does everyone get items wholesale?
Find the manufacturer of the items you want and call the number. They will tell you if they have a distributor in the area for that product. Then you can contact them directly and set up a order.
Sam’s club is like the liquor store they just carry the items. You have to talk to Frito Lay’s if you want to buy Doritos Wholesale.
This is great stuff. Thanks for lacing us.
You’re welcome it’s my job.
First of all, thanks for a terrific post!
So I’m trying to apply for a Seller’s Permit here in California. (For a book business, but that’s another story.) The permit application requires an address. The only address I have is my home address. Which is in a residential area, i.e. not zoned for retail.
Doesn’t everyone have this problem? (Unless they already own a physical storefront, in which case they wouldn’t be learning about Seller’s Permits from your blog for the first time.)
What’s the solution? How do I get a Seller’s Permit without a physical store in a retail zoned neighborhood?!
Thanks.