DO I REALLY NEED A RESALE PERMIT ?? newbie.... help

Amanda16
New Member
1 0 0

Hi I'm really new to this whole drop ship and eCommerce thing, Fresh out of the box lol

Do I need any permits? paper work ? What is the legal side of this that I need to get started and business to work with me. 

 

Thank you for reading 

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Jacob_Shreve
New Member
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This depends on where you are, and where your drop shipper is. For 49 states, this is pretty straightforward: Get registered as a business in your state, and collect sales tax in your state. In California, the process is very convoluted.

If you're in-state, you owe sales tax. If you're out of state, you owe use tax. This tax is based on the state rate + the rate in the county of your customer.

Drop shipping adds a new level of complexity in that if you are out of state, and have a permit, you owe the use tax, but if you are out of state and don't have a permit, the drop shipper owes the use tax. I'm not even sure of the policy if you're in-state.

I'm also still pretty new to this, so I could be wrong. Verify the research yourself, or pay a professional to make sure you don't mess up.

Check out California Publications 121 and 77.

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Sue_Chilberg
New Member
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The wholesale dropshippers that I use, do require that you have a sales tax permit/business license.

Researching I have found that dropshippers that don't require that information and want it on file, are not actual dropshippers,just a middleman.

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FirstHomeFurnis
New Member
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What if you live in a state with no sales tax? I live in Oregon; we don't have sales tax here.

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standoutd
Navigator
1137 0 125

Maybe contact your local Chamber of Commerce? Eve if there is no sales tax, you still might need to register as a business. Are you incorporated/organized in any fashion? Aside from state law, a wholesaler is going to want to know you are buying for resale and that you are a legit business.

 

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