To form an LLC, file Articles of Organization with your state and pay the necessary fee. To form a corporation, you will need to file Articles of Incorporation and pay a fee.
Apply for your FEIN here: https://www. irs. gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online.
This permit or license goes by different names, depending on the state. It might be called a resale permit, resale certificate, reseller’s certificate, sales tax ID, or sales tax permit. [3] X Research source Contact your state’s taxing authority to ask how to get the permit. Generally, you’ll need to complete an application. Some states might use your taxpayer ID as your sales tax ID, although others won’t.
For example, if you want to buy T-shirts and are located in Brooklyn, you can type “t-shirt wholesale Brooklyn. ” You might also check online wholesale directories, such as Wholesale Central. [5] X Research source You can search by location and merchandise using advanced search.
For example, if you are in the bridal/marriage business, then don’t search for trade shows catering to the insurance industry. However, think broadly. As part of your bridal business, you might use extensive printing and graphics. You could attend a trade show for the graphics/printing industry if you need to buy printing supplies in bulk.
If your library is small, it probably doesn’t carry trade magazines. However, ask the interlibrary loan department if you can get a copy from another library.
Obtaining referrals this way can be tricky because competitors don’t want to let you know where they get merchandise for rock bottom prices. However, you can try to connect with other business owners at out-of-state networking events. [9] X Trustworthy Source U. S. Small Business Administration U. S. government agency focused on supporting small businesses Go to source Also ask business owners in a slightly different industry. For example, you might sell T-shirts as part of a youth apparel business. Someone else might use T-shirts as a free giveaway when consumers purchase computer services. You aren’t direct competitors, though you both use T-shirts.
Look for the brand manufacturer’s contact information online. Alternately, you can look at the packaging for some of the products, which may contain a manufacturer’s contact information.
Is the wholesaler selling to the public? Legitimate wholesalers only sell to retail establishments. Are you charged a monthly fee? Legitimate wholesale companies don’t charge a monthly fee. However, they will charge a fee if you are running a drop-ship business.
For example, they will want to see your reseller’s permit, tax ID, and legal documents. You’ll also have to be approved—possibly before they will even negotiate with you about prices.
This isn’t always possible. If you need a certain brand, then you might be stuck going with one distributor or wholesaler.
If you are an established business, prove it to the wholesale company. They are more likely to do business with someone who has a track record of selling large quantities of products. [14] X Research source When negotiating, tell the company you are getting other quotes. This knowledge might create an incentive for them to lower their prices. You can negotiate by offering to pay a higher deposit. If you pay 50-70%, you might have more leverage in the negotiation. Be suspicious of extremely low prices, which might be a sign the goods are low-quality. For this reason, you should ask for samples before settling on a contract.
Faster shipping for free. You can improve your client satisfaction by getting the products faster. A more comprehensive or longer warranty. Larger discounts when buying in bulk.
Delivery schedule. Will the wholesaler send the goods when you need them? For example, if you can only accept goods in the morning, check that the wholesaler doesn’t only deliver after noon. Minimum orders. Some wholesalers might require a minimum purchase, e. g. , 5,000 items. Check that the minimum is reasonable for your business, otherwise go with someone else. Return policy. The products might be defective or not what you were expecting. Make sure the contract allows you to return goods for a refund.
You can find a business lawyer by getting referrals from other business owners. You may also contact your local Chamber of Commerce and ask if they can refer you to anyone. Alternately, you can contact your nearest bar association and get a referral.
