If you plan to sell retail goods or merchandise in California, you need to make sure you prepare properly by having your business plan in order. This should include applying for a California resale license so you can avoid frustration in the future. Some people might not realize attempting to engage in any commercial enterprise, without this essential legal document could result in having to pay taxes on bulk items every time they purchase from various manufacturers.
Since there is more than one type of certification you can receive for selling, some wholesalers and retailers might not be sure about the correct one for their particular company. There is a seller’s permit and the other one for the reseller. The reason for the confusion is that the terms are used similarly for a broad range of trading. Simply put, a seller’s license requires the business owner to pay for use and sales tax, while the holder of a wholesale license is not subject to paying taxes on items received from their dealers or suppliers. Of course, they will collect tax from the customers purchasing their products and services.
What Is Required?
The traditional way of registering through the state of California to receive authorization for a business consist of getting information together such as, your social security number, financial account details, ownership agreements, the estimated sales amount as well as manufacture and supplier documentations.
Overall, a great deal of information is needed when registering for certification. Many individuals in California soon discover dealing with the entire process is tedious, coupled with the lengthy time they might have to wait for legitimizing their potential businesses when registering through the state; they want a better solution. Fortunately, they do not have to go through this ordeal alone, when a reputable filing service can provide the answers that they seek.
Business savvy Californians know where to go for their certification as they take advantage of a professional filing service that does the task for them. In three simple steps, including, having your business information available, getting help in filling out the government form and then getting a notice when your permit is ready, you can have peace of mind in knowing that you will be able to run your business without any worries about being compliant to the laws regarding taxable goods and services.
They will interact with the state so you can focus on what you need to do. If any issues arise concerning the application, representatives will reach out to you for more information.
Remember, if you are getting ready to open a wholesale business, it would be a good idea to make it a point to have your California resale license in place.