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How to Buy at Wholesale Price

How to Buy at Wholesale Price

Hits:31  Date: 2017/3/24 15:08:28

Starting a retail business is a tried and true model for making money. Retail businesses can be run offline from a physical location or they can be run less expensively as an online e-commerce operation. To have success as a resale business, you must have access to products at wholesale prices. Wholesale distributors will only sell their products to established businesses. Before you can begin purchasing products for resale, there are several steps that must be taken.

1. Get a federal tax ID number, also known as an Employer Identification Number (EIN), from the Internal Revenue Service. You can apply for your EIN online and have the number issued immediately for setting up a business bank account and wholesale distributor accounts.

2. Apply for a sales tax license with the state you live in. In Texas, this license is called the Texas Sales and Use Tax Permit and you can apply for that online as well. For other states, search online for your state's revenue or tax department website.

3. Register your business name or file a Doing Business As (DBA) form with your state. If you are doing business under your own name, this step is not needed.

4. Set up a business checking account with your local or existing bank. You'll need the EIN and your business name filing for this step. This step is considered optional, but many wholesale distributors have strict requirements for their application, and if you do not have a business bank account they will not open a buyer's account for you.

5. Apply for a credit or debit card that will solely be used for your business. Attach this card to your business checking account and make sure it's issued as a business account card because this is what you will use to purchase products from wholesale distributors.

6. Search for wholesale distributors of the product type you want to sell. Search online or locally.

7. Fill out the buyer's account application for each wholesale account you want to open, and follow the instructions for submission. Some applications can be submitted online, while others require the application and supporting documentation to be sent via regular mail.