Do I need tax ID and reseller permit to have my own website?

Full Member
  • Posts: 22
  • Joined: 26 Sep 08
  • Karma:
26 May 11 06:07:42 pm
Hey Just wondering when i open my website would it be better have a tax id or do i not really need one? confused with the legal matters needed to make a website or business and not get penalized! I would like to make this business offical so what do you think i shold do salehoo family?

Site Admin
  • Posts: 2563
  • Joined: 21 Mar 10
  • Karma:
27 May 11 01:37:59 am
Hi Million-ells,

It is not illegal to have a website without a reseller's permit. :)

A Reseller Permit and a Tax ID refer to the same thing. It goes under several other aliases - State Sales Tax ID, Resale Number, Resale Certificate, Vendor's License and Reseller's License, among other names. :)

This permit is simply a certificate issued for a small fee by your state that declares you are registered to collect sales tax from your customers/buyers.

And when do you specifically need this license?

* If you live in the USA or Canada. Most states have a sales tax, but there are a couple that don’t. If you reside in one of these states just let the wholesaler know and they may have a different form or requirement for you to complete.

* If you sell online to make money (i.e. You sell more seriously than just getting rid of a few old things from around the house every now and then). You need a seller’s permit so you can charge and collect taxes, which you’ll pay to your state government later.

* If you want to purchase goods wholesale from a US supplier (and you are also based in the US), you need a seller’s permit to buy wholesale sales tax free.

You will also encounter another term in your business venture - the business permit!

Occasionally you may run into suppliers who may want to see a business license before they will sell to you. These suppliers will generally have large minimum orders and wish to determine that you are serious about purchasing their goods.

Although it’s not necessary for SaleHoo members to have a seller’s permit and a registered business for them to use many of the suppliers in our directory, we strongly recommend you get one as it will give you access to even MORE wholesalers.

Hope this helps! :)



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