I purchase merchandise from wholesale vendors for inventory within my own small company. I have found that some wholesalers will ask for just a business card to sell to you, and others ask for your resale certificate and business card. I am not sure if it is really necessary for me to have this kinf of certificate if I already have a business tax id number. If not, is it sufficient to give them my business card and tax id number inorder to do business w/ them???
2006-06-28 12:04:00 · 2 answers · asked by dasione 1 in Business & Finance ➔ Small Business
Depending on local and state laws in your area may require you to have a resale certificate or vendors license. The resale certificate assures the vendor you are indeed a retailer. It may be just their rule in order to purchase from them. It ensures them you are not buying for your own personal needs. This has been my own personal experience.
2006-06-28 12:12:00 · answer #1 · answered by Paleo C 3 · 0⤊ 0⤋
Here in California you would need to register with the State Board of Equalization and would need a resale certificate. Without one you are required to be tax on the merchandise you buy for resale. Additionally, you will need to collect tax from your customers and remit to the Board.
2006-06-28 12:10:07 · answer #2 · answered by Phillip B 3 · 0⤊ 0⤋