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Starting a(n) Vendor Managed Inventory Business Licenses & Tax IDs

Hi, I'm Wholesale To Wholesae Selling Vendor Managed Inventory 🛒 Wholesale To Wholesale Selling – What You Gotta Have (Legally Speaking) You’re selling to the sellers? Classic power move. Here’s what your business needs to stay cool, compliant, and cash-flowin’. ✅ Licenses & Registrations ✅ Business License – Because yes, even moguls need permission slips..., .

Vendor Managed Inventory

✔ Biz Structure

You can choose to be a(n) Vendor Managed Inventory :

Sole Proprietor,
LLC,
Corporation or
Partnership.
After you decide and select your business entity, you need licensing.

✔ Biz License

Charleston Business Tax Registration ( Vendor Managed InventoryBusiness License)
All businesses including home, online or mobile BUSINESS need a BUSINESS license because they are BUSINESSES.

✔ DBA Biz Name

A(n) Vendor Managed Inventory business doing business under an assumed business name in Berkeley County i.e. you are a business with a trade name other than the owner's legal (full name) name are required to get a(n) assumed business name certificate. E.g. you venture into a(n) Vendor Managed Inventory business and you give it a trade name such as "Excellence Vendor Managed Inventory & Associates". You will need to register an assumed business name certificate.

✔ Seller Permit

In SC Vendor Managed Inventory you need a resale ID ( AKA seller's permit) if you selling touchable items. (A.K.A state id, wholesale, resale, reseller certificate, about $39 for most states). You will need it if you sell or want to buy wholesale any Vendor Managed Inventory related items, such as food, materials, or merchandise.
Seller's Permit

✔ Federal EIN

Note: All businesses need a federal tax ID number except sole proprietors that are not employers and are not independent contractors.
An independent contractor is a self employed business person that receives more than $600 per year from anyone of his or her clients.
IRS rule: The client must issue a 1099 form to the independent contractor and the independent contractor must have a federal tax ID. However, even sole owners may obtain a federal ID and use it as a business tax ID instead of using their own social security number as a business tax ID number.
However, all other licenses that apply to sole proprietors as discussed here are requited regardless of getting a federal tax ID number.

✔ State EIN

In addition you will need a federal and a state EIN if you will hire employees. I.e., a SC Federal Tax Id Number ($29) and a(n) SC State Employer Tax Number

✔ L L C

Instead of filing a fictitious business name DBA Filing (about $49 plus state and legal newspaper publication fees) in Charleston, Incorporate in SC or form a(n) SC LLC .

You have a choice to file a DBA or form an LLC or incorporate. If you will do business under your first and last legal name you will not need to get a fictitious business name.
Also note that even using your first and last name may not help you avoid filing a DBA if the name has a suffix such as "& sons" etc.

✔ Incorporation

If you do form an Wholesale Trade llc or incorporate (about $49 plus state fees for most states) your Vendor Managed Inventory business instead of just filing a fictitious business name (dba), it will help you avoid personal liability from wrongs arising from your business dealings and you will not have to file the Charleston business name. In lieu of recording a Berkeley County trade company name (our filing service fee includes trade name registration and newspaper legal publication for 4 weeks) you can also form a corporation in SC or form an SC LLC (starts @ $49 plus state fee for most states & includes required documents such as bylaws for the corporation and Limited Liability operating agreement for the LLC). .

I will buy and sell merchandise pallets.

Answer: Hi Jess, here is what you Need In Erie Pa 16504 in Order To Sell pallets.

First, you need LLC, DBA, or Corporation, so you can register your business name "Erie Pa 16504 pallets,".

Second, You will need to buy your pallets supply wholesale and sell them retail (i.e., collecting sales tax). In both cases, you will need to obtain a seller's permit to do it legally. Pennsylvania's sales tax rate is 6 percent.

Third, you need a business license and or a home occupation permit. If you are a home business, you may need just one or both of these.

Finally, If you hire Concrete Statuary workers, you will need both a Federal EIN, and a State EIN as well.

A: You need a seller's permit also called a wholesale ID to buy goods wholesale. Hi, yes I was researching to sell baked goods such as cakes and pies. , I plan on selling home baked goods on New Years for the Rose Parade in Pasadena hello and good morning I am looking at getting a license to sell edible cannabis goods.

Wholesale Business

As wholesale business you buy large amounts of any type of merchandise from a manufacturer from anywhere in the world, for example, China, and you sell it in smaller amounts to reseller’s in any of the 50 USA states, to retail businesses such as department, high-volume and specialty stores, or directly to the consuming public.
So, for example, a manufacturer in China produces coffee cups by the millions.
You enter into a deal to buy 1,000 coffee cups fob New York Port.
You pay the Chinese Manufacturers and they ship it to the USA.
You pick it up and you store them in a Coffee Cups warehouse. You advertise and sell small or large amounts of coffee cups to USA retailers or individual consumers.
The term wholesale as opposed to retail means that you buy and sell large quantities usually just for resale of these merchandise.
In the United States, wholesalers need to obtain a wholesale ID also called a reseller's license, resale id or seller’s permit and keep records of all transactions for state sales tax report purposes. For example, you sell to a retailer in Florida from your California warehouse. You need to record the order amount as a wholesale sale to confirm that the retail buyer was from Florida and he was a reseller so you do not have to charge tax.
You will need to report all your wholesale transactions to the sales tax office of your state, either quarterly, semiannually or annually.
You will also need at least a Fictitious business name registration if you use a name such as "Whole Bunch of Discounts Wholesaler". However, forming an LLC is highly recommended for this business.
All wholesalers need a business tax registration license as well because all wholesalers must get one.
If you will hire sales people or other office or warehouse workers, you will need an IRS Tax ID and a state Employer Tax ID for employment tax withholding.

You're setting up a Wholesale to Wholesale – Vendor Managed Inventory (VMI) business? Excellent choice—high margins, tight inventory control, and big potential. Let’s lay down the legal and logistical groundwork like a boss, shall we?

📋 Licenses & Registrations Checklist

✅ LLC Registration or S Corp Election

✅ Seller's Permit

✅ EIN (Employer Identification Number)

✅ Business Name Registration (if using a name other than your own)

✅ General Business License

✅ Sales Tax ID (if not bundled with Seller's Permit)

✅ Resale Certificate (helps you avoid sales tax on goods you resell)

✅ Home Occupation Permit (if running out of your garage like a true wholesaler legend)

🏢 LLC or S Corp? Choose Your Armor

An LLC is like legal yoga: flexible, simple, and great for solo or multi-member setups. It gives your business its own legal identity and shields your personal assets like a tax-savvy bodyguard. An S Corp, on the other hand, is more like a suit—structured and designed to keep your taxes trim if you’re pulling in higher profits. With an S Corp, you can pay yourself a reasonable salary and potentially save on self-employment taxes. Why pick one? Because your wholesale buyers and suppliers take you way more seriously when your emails end with "LLC" or "Inc."

🛒 What’s a Seller’s Permit For, Anyway?

That Seller’s Permit isn’t just for show. It gives you the golden ticket to legally sell tangible goods and collect sales tax where required. It also lets you buy inventory without paying sales tax up front. Wholesale is your game, and you’ll be moving goods in bulk, so this one’s a must.

🔢 EIN: The Social Security Number for Your Biz

EIN stands for Employer Identification Number. But even if you're not hiring, you’ll still need it. Banks ask for it when you open a business account. You’ll need it to file taxes and it’s also required for forming that shiny new LLC or S Corp. Think of it as your business's backstage pass—it gets you into all the systems that matter.

🧠 Why Register Your Business Name?

Using a name that’s not your own? Time to make it official. Registering your business name makes it legal, prevents others from swiping it, and builds that professional street cred. Bonus points if it sounds fancy enough to land you in a supplier catalog.

💼 Capital to Kick Things Off

Vendor Managed Inventory doesn’t come cheap. You’re managing stock, which means software, space, and systems. Here's a rough breakdown:

✅ Starting capital: $10,000–$50,000 (varies with product type & volume)

✅ Inventory software (VMI platforms): $50–$300/month or more

✅ Initial stock: $5,000–$30,000 depending on industry

✅ Storage/warehouse space: $500–$2,500/month (or more if you’re in a hot zone)

🧰 Equipment You’ll Likely Need

✅ Barcode scanners (for tracking inventory like a pro)

✅ Industrial shelves and pallets

✅ Warehouse management software

✅ A solid printer & labeling setup

✅ Pallet jacks or forklifts if you're moving the big stuff

✅ Reliable WiFi (because manual spreadsheets are the enemy)

📈 Industry Stats That Make This Business Worth It

✅ The U.S. wholesale trade market is worth over $10 trillion annually.

✅ Vendor Managed Inventory programs can reduce stockouts by 30% and boost customer satisfaction by 20%.

✅ Wholesale distribution has grown 4.5% annually over the last five years.

✅ B2B eCommerce sales are projected to hit $3 trillion in the next couple years. And you, my friend, are riding that wave.

So go forth, inventory wizard! When you're ready to make it all official, set up everything you need

Not Sure? Take Quiz!

Charleston 6/10/2025 5:42 AM .

Wholesale To Wholesae Selling Vendor Managed Inventory

🛒

Wholesale To Wholesale Selling – What You Gotta Have (Legally Speaking)

You’re selling to the sellers? Classic power move. Here’s what your business needs to stay cool, compliant, and cash-flowin’.

✅ Licenses & Registrations

✅ Business License – Because yes, even moguls need permission slips.
✅ Seller’s Permit – You're not just wholesaling, you're wholesaling with flair (and sales tax obligations).
✅ Wholesale License – Yes, it's a thing. And yes, you want it to legally sell goods in bulk.
✅ EIN (Employer Identification Number) – Even if your “employees” are just you and your caffeine.
✅ Business Name Registration (DBA) – For when your company name is more “Cool Biz Supply Co.” and less “Your Legal Name, LLC.”

✅ Special Permits (The VIP Passes)

✅ Resale Certificate – So you can avoid paying sales tax when buying inventory. Because paying tax twice is just rude.
✅ Zoning/Location Permit – If you're running this wholesale empire from a physical spot, make sure it's not secretly a yoga studio.

🧾 Quick Answer to the Big Question

Yes, even if you're selling wholesale to other wholesalers, all these apply. You're still operating a business that deals in physical goods and taxable transactions—there’s no secret handshake exemption (sadly).

🚀 Make It Official

Obtain all licenses and registrations here online: Now go forth and wholesale like a boss!