I am new to salehoo and the wholesale business. I have already applied for my tax ID or (EIN). Will I also need a resellers license, or is the tax ID enough? I want to jump in head first so to speak, but I dont want to be surprised by extra taxs and penalties when the time comes because I didnt do things properly.
EIN is mainly used if you plan to hire employees or plan to incorporate and really is not necessary otherwise. follow this link Link hidden: Login to view
It is really hard at this time to know exactly what you need. Does your business name include your last name? Do you plan to hire employees? Will you be charging taxes on your sales?
If you answered no to all the questions then all you need is a business license or DBA license and highly recommended is the resellers certificate...even though it is used in cases when you charge taxes...it can also be handly in the case you have a supplier requesting this information and some suppliers request a copy of your resellers certificate. The DBA license is easy to obtain and very cheap. With the dba license you can open a business bank account and do other things and it legalizes your business.
What many business owners is file a different form with irs and add their business expenses via their SS# when it is time to file but to be safe, it is best you call an accountant.