Lorrie Posted November 30, 2005 Share Posted November 30, 2005 Ok, I have a online store which most of you know. I have both my business license and my sales tax license so please don't think that this is me.I got a wholesale request (it is my policy to get a copy of their sales tax license before I allow anyone access to my wholesale section) from a company that has an online store. So I sent the company my normal email telling them that I need a copy of their sales tax license for my records. To my shock I get one back telling me that they do not have one and they wouldn't even know where to get one! I was like WHAT?!? So after my shock I sat down and explained to this company that they really should have one exspecially if they are making & selling products and collecting sales tax. (This was my nice way of telling them that it is against the law.)I also explained on where/how to get one etc...The moral of this story. Please if you are going to be selling and collecting taxes please, please, please get your license! Quote Link to comment Share on other sites More sharing options...
sudsnwicks Posted November 30, 2005 Share Posted November 30, 2005 What state were they from? Some states (e.g. mine) do not have sales tax and so such a license would not be necessary. Quote Link to comment Share on other sites More sharing options...
Lorrie Posted November 30, 2005 Author Share Posted November 30, 2005 What state were they from? Some states (e.g. mine) do not have sales tax and so such a license would not be necessary. Not sure.. So mean to tell me that you can sell online and to whomever you wish and not having to worry about Sales tax licenses? If so I think I am going move!Than what than how to you get around buying from companies that require license # to buy from them wholesale? Quote Link to comment Share on other sites More sharing options...
RobinInOR Posted November 30, 2005 Share Posted November 30, 2005 My problem as well - Oregon doesn't have sales tax, so we don't have to do any of that stuff.If a website asks for a license number, we're just supposed to use our business registry number... and if we're a DBA using our name and don't have a business registry number, then we use our SSN. Which some sites will take, some won't. Quote Link to comment Share on other sites More sharing options...
sudsnwicks Posted November 30, 2005 Share Posted November 30, 2005 Than what than how to you get around buying from companies that require license # to buy from them wholesale?See? We are not so lucky after all. It can be a problem getting a wholesale account with a supplier because they usually ask for sales tax certificate # which I cannot produce because my state doesn't issue such a thing. In the end I only registered for a wholesale account with a supplier in my state as they understand about this and only asked for my business license #. So, don't think about moving yet! Quote Link to comment Share on other sites More sharing options...
Lorrie Posted November 30, 2005 Author Share Posted November 30, 2005 See? We are not so lucky after all. It can be a problem getting a wholesale account with a supplier because they usually ask for sales tax certificate # which I cannot produce because my state doesn't issue such a thing. In the end I only registered for a wholesale account with a supplier in my state as they understand about this and only asked for my business license #. So, don't think about moving yet!What a PITA for you guys. Hmmm now I am going to have to rethink how I work my wholesale section. I didn't realize that some states don't issue sales tax licenses. I was just trying to keep people who are just looking to get a cheaper price out of the wholesale section and save that for people who actually are business. Ya know? Now I guess I am going to totally have to revamp that part. I guess I learned something new today. thanks! Quote Link to comment Share on other sites More sharing options...
sudsnwicks Posted November 30, 2005 Share Posted November 30, 2005 I was just trying to keep people who are just looking to get a cheaper price out of the wholesale section and save that for people who actually are business.I know what you mean. I get a lot of inquiries which are quite probably bogus. How about asking for a copy of their business license? Everyone should have this piece of paper. Quote Link to comment Share on other sites More sharing options...
prairieannie Posted November 30, 2005 Share Posted November 30, 2005 If you have a minimum on your wholesale orders, why would anyone care if the buyer had a license or tax ID number not? If you dont' have a minimum, then I could understand it, but I just figure everyone who does wholesale puts some sort of dollar minimum on orders, at least you can be comforted by the volume rather than the extra profit from retail that way/. It seems really ridiculous to me to give a rats behind if the buyer is a business or not if they are willing to purchase in volume. Quote Link to comment Share on other sites More sharing options...
MichelleOH Posted November 30, 2005 Share Posted November 30, 2005 You need to obtain a license # of some sort for tax reasons. When you sell wholesale to a business you don't charge sales tax. You need to be able to show that amount of sale was tax free to the IRS if you were ever to be autited. This is how I always understood it. Quote Link to comment Share on other sites More sharing options...
Lorrie Posted November 30, 2005 Author Share Posted November 30, 2005 You need to obtain a license # of some sort for tax reasons. When you sell wholesale to a business you don't charge sales tax. You need to be able to show that amount of sale was tax free to the IRS if you were ever to be autited. This is how I always understood it. This is how I understood it too. Quote Link to comment Share on other sites More sharing options...
prairieannie Posted November 30, 2005 Share Posted November 30, 2005 You need to obtain a license # of some sort for tax reasons. When you sell wholesale to a business you don't charge sales tax. You need to be able to show that amount of sale was tax free to the IRS if you were ever to be autited. This is how I always understood it.Ahhh the IRS...yes, this makes sense. Does anybody else think wholesaling is a pain in the ass? It seems like more of a hassle than I am interested in messing with. Quote Link to comment Share on other sites More sharing options...
Lorrie Posted November 30, 2005 Author Share Posted November 30, 2005 If you have a minimum on your wholesale orders, why would anyone care if the buyer had a license or tax ID number not? If you dont' have a minimum, then I could understand it, but I just figure everyone who does wholesale puts some sort of dollar minimum on orders, at least you can be comforted by the volume rather than the extra profit from retail that way/. It seems really ridiculous to me to give a rats behind if the buyer is a business or not if they are willing to purchase in volume. When I started selling my candles this is the way that I set everything up. I have retail customers that buy cases and cases and don't bat an eye. Since this was the way I set my business up. I left it like that. Quote Link to comment Share on other sites More sharing options...
prairieannie Posted November 30, 2005 Share Posted November 30, 2005 When I started selling my candles this is the way that I set everything up. I have retail customers that buy cases and cases and don't bat an eye. Since this was the way I set my business up. I left it like that.I understand. I was just thinking outside of the tax constraints..I'm just now really starting to look into consignments and wholesale, and ya know...it just seems like wholesale is a lot more work all the way around. Sounds like you do a lot of it...do you agree? Or do you find it to be an easier way to do things all things considered? Quote Link to comment Share on other sites More sharing options...
Lorrie Posted November 30, 2005 Author Share Posted November 30, 2005 I understand. I was just thinking outside of the tax constraints..I'm just now really starting to look into consignments and wholesale, and ya know...it just seems like wholesale is a lot more work all the way around. Sounds like you do a lot of it...do you agree? Or do you find it to be an easier way to do things all things considered?I don't do alot of it but I do my some. It is alot of work but I feel it is worth it in the long run because I have my name on all those products in the stores. People come to my website and they see all the other products that I offer too and they buy other things too. I know that there are people on this board that do alot more wholesale than I do and maybe they will chime in and tell you more than I can. Quote Link to comment Share on other sites More sharing options...
theBohnen Posted December 1, 2005 Share Posted December 1, 2005 You wouldn't be charging your state sales tax on an order shipped to another state anyway, would you? So what difference does it make?Most companies ask for a biz licence or tax ID number to prevent cheap people from trying to get the wholesale rate, but like prarieann said.. if you require a minimum volume purchase to qualify for wholesale pricing, and they're out of state, why bother? Quote Link to comment Share on other sites More sharing options...
MichelleOH Posted December 1, 2005 Share Posted December 1, 2005 You wouldn't be charging your state sales tax on an order shipped to another state anyway, would you? So what difference does it make?Most companies ask for a biz licence or tax ID number to prevent cheap people from trying to get the wholesale rate, but like prarieann said.. if you require a minimum volume purchase to qualify for wholesale pricing, and they're out of state, why bother?It's all for Uncle Sam! Quote Link to comment Share on other sites More sharing options...
Fire and Ice Posted December 1, 2005 Share Posted December 1, 2005 I have two dozen or so customers that will buy a case of candles at a show and I give a nice discount on those but it still isn't my wholesale price because they are only buy one case not six or eight cases at a time. I plan to put up a wholesale section on the website I will be putting together in Jan/Feb of next year. But they will have to show proof of Tax ID # or Business # first because other businesses can grow my sales a whole lot faster than an individual who just wants a great price on one case of candles or even two cases. Maybe to many it is a pain but no more so that other avenues of bulk sales like fundraisers and craft shows. Quote Link to comment Share on other sites More sharing options...
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