Is there a business permit for drop shippers? and Do I need a business permit to buy wholesale? are common product sourcing questions. And there is a great deal of myster and confusion surrounding the the issue tax permits.
The answer is this; if you purchase goods from a true wholesale business, then you will be required to present a state sales tax permit. A drop shipper who is also a true wholesale agent
will also need to see a state sales tax permit.
However, as you may have noticed, there are zillions of businesses advertising “wholesale” prices that do not require tax permits. And the reason is that those businesses are not true wholesale businesses. They may be liquidators, or closeout agents, or product brokers, or some other sort of business–and their prices may indeed be great, but they are not wholesalers.
A state sales tax permit is usually very easy to get, probably free of charge, and takes little more than a phone call or filling out a free application online with the agency in your state in charge of business licensing. Do not fall for middlemen who offer to get you a business license or tax permit for a fee. This is the equivalent of someone charging you to tell you where you got your shoes (on your feet, right?).
Tags: drop shipping, drop ship directories