Massachusetts Wholesale License Overview
When a new business registers for a Massachusetts Wholesale license, it is then given a license to start its business. The purpose of the Wholesale License is to allow buying wholesale – for reselling and paying no tax. Take a Short Quiz to Find Out if You Need a Massachusetts Wholesale License or Business License or any other Business Tax Id or License to start your business.
As long as you have a wholesale license and a retail license, you can purchase wholesale goods and sell them to consumers. Although a real estate agent and a real estate wholesaler both never own the home being sold and make a profit off of connecting a home seller to a home buyer, a wholesaler doesn’t need a formal education or license.
Currently, there is no fee to register for a Massachusetts sales tax permit. Wholesalers can also sell to other Massachusetts Wholesalers. The license allows the holder to store their product at a premises in Massachusetts, no secondary storage permit is required.
Licensing and Registration
You must register with the FDA as a food facility if you plan to warehouse the alcohol beverage products you import and/or wholesale. In Massachusetts, this is typically called a Sales and Use Tax Registration Certificate.
Seller’s permits are known by a variety of other names as well: sales tax permit, sales and use tax permit, wholesale license, and reseller permit. If you’re not sure how to get a wholesale license in Massachusetts, there’s no need to worry – we’ll help you. Which Businesses Need a Seller’s Permit in Massachusetts?
Besides registering with the IRS and having an EIN, a state tax ID number and a sales-tax license are things you need to have before applying for a wholesale license. Here are three simple steps you need to take to get a wholesale license:
- Register your business.
- Apply for an EIN.
- Obtain sales tax license.
In order to buy items wholesale, you will need to obtain a wholesale license. Depending on the state where you business is located, it could also be called a seller’s permit, a resale ID, wholesale ID, retail ID or a reseller’s license. Review the wholesale business requirements on your state’s website to see if any other licensure is needed.
Wholesale Real Estate in Massachusetts
To wholesale real estate in Massachusetts:
- Learn housing market trends and real estate laws. Find a mentor to introduce you to wholesaling. Attend seminars and networking events. Enroll in a wholesale real estate course.
- Learn about Massachusetts real estate wholesaling laws.
Seller’s Permit and Resale Certificates
A Massachusetts Seller’s Permit allows buying goods tax-free for resale. Known also as a wholesale discount ID or resale ID. With this, you can buy merchandise tax-free from a wholesaler and charge sales tax when reselling.
Getting a Massachusetts wholesale license is easy. Fill out the online order form. It only takes a few minutes.
A Massachusetts resale certificate allows buying goods tax-free for resale. Known as a Sales Tax Resale Certificate (Form ST-4).
To start a Massachusetts wholesale food business: Get state and federal licenses to operate legally. Sell to other businesses, not directly to consumers.
Top Companies and Permit Clarifications
Top wholesale companies in Massachusetts:
- Factory Five Racing sells car parts and kits.
- F&B Fruit and Produce sells fresh produce.
Clothing boutiques need a seller’s permit to buy materials wholesale. Registering this permit ensures you comply with state sales tax laws.
With a valid resale certificate, you can buy goods tax-free from a wholesaler for resale. You must then collect sales tax when reselling those items. Each certificate applies to one vendor.
Wholesalers buy products in bulk from manufacturers at a discount. They sell to business owners at a slight markup. Work with a wholesaler to select products versus directly with a manufacturer.
In most cases, a wholesale license is a seller’s permit, but check with your state’s tax or revenue office to be sure.
Fees and Legal Requirements for Wholesale Licensing
Is a seller’s permit the same as a wholesale license? Wholesale vendors need a seller’s permit if they buy and sell goods that are subject to sales tax when sold retail.
How much does a seller permit cost? How Much is A Sellers Permit? For most states, the price is $49.
To buy wholesale, you need a business license or seller’s permit and an Employer Identification Number (EIN) from the IRS. Some states require more documents depending on local laws. Register your business and call your state for requirements.
The step-by-step process to get a wholesale license:
1) Register your business
2) Get an EIN from the IRS
3) Obtain required licenses from your state. Fees vary but average $6,500 for a license.
A wholesale license gives authority to legally buy goods tax-free from manufacturers for resale. It’s the same as a seller’s permit, sales tax permit or resale certificate. You can get one yourself or use a law firm.
What allows tax-free status is called a resale certificate in New York. This also allows reselling goods. Sales tax is collected at point of sale when reselling items instead of paying tax upfront.