Nevada Based Wholesalers
Understanding the Nevada Wholesale License A Nevada Wholesale License serves as a sales tax ID number. It is essential for businesses that wish to buy or sell goods wholesale. This license goes by several names including Seller’s Permit, Resale ID, Reseller License, or State ID.
For instance, consider Edward, who sets up an online business from his home. If Edward wishes to buy products at wholesale prices and sell them at retail prices online, he needs a seller’s permit. This permit also encompasses a resale certificate that he’ll present to the wholesaler, proving his entitlement to buy products without sales tax due to his wholesale status.
Let’s say Edward purchases 500 items for $1 each. Instead of paying an additional sales tax on his purchase, he avoids it due to his wholesale status. However, when selling these items online, Edward will typically need to charge a sales tax (around 8% in most states) and collect this to remit to the government.
To determine if you need this permit or any other licenses to kickstart your business, you can call us today.
Navigating the terrain of licensing can be tricky. While the IRS might provide a number, you might still need to secure a Wholesale or Retail License from each state where your business has a presence. Although various federal and state websites offer guidance, their complexity can be daunting.