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Do I need a registered company?

by TLondon
5 replies
  • ECOMMERCE
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To get involved in eCommerce, do I need to have a registered company of my own? I tried various wholesalers and ALL of them require my company's info; just a private individual won't do.

Is this true for all wholesalers?

Thanks
#company #registered
  • Profile picture of the author UnkwnUsr
    Originally Posted by TLondon View Post

    To get involved in eCommerce, do I need to have a registered company of my own? I tried various wholesalers and ALL of them require my company's info; just a private individual won't do.

    Is this true for all wholesalers?

    Thanks
    Do you mean an LLC or a business license? I think a normal business license should suffice.
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  • Profile picture of the author Auctiondebteliminator
    I think your issue of not being able to find anyone that will work with you pretty much answered your own question.

    What a registered business entity allows you to do is buy items sales-tax free for the purpose of resale.

    If you cannot prove that you're able to do that with the proper paperwork, then someone is basically assuming you're looking to get a 'good deal.'

    However - having a federal business number doesn't guarantee you're getting a good deal anyway - since most suppliers inflate their prices anyway.

    Having a sales volume does make it a lot easier to get 'bulk discounts.' Something I've taught for years.

    -Good question

    -ADE-
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  • Profile picture of the author Roy Jones
    Yes you need to register your company first. Registered company also knows as reputed firm and people does not have issue to work with them.
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  • Profile picture of the author Daniel J
    Auctiondebteliminator is absolutely right. Starting out, you do not need to form a corporation, but you DO need to let the IRS know that you'll be buying tax free for resale. The quickest way to do this is to simply go down to your county clerk's office and ask about registering a business. I started with a DBA which consisted of a short form that I needed to fill out and a $10 fee (possibly a bit more these days) Good luck!
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    • Profile picture of the author OnlineStoreHelp
      You need one thing (depending on location) which is paperwork saying you are buying for the purposes or resale. Each state or country has its own requirements. Most call it a resale certificate, in Hawaii its a General Excise Tax License and overseas you need some type of VAT registration.

      Essentially once you have this, they will start doing business with you, or at the very least, give you their pricing list.

      Once you are ready to launch, you can do one of several things (assuming you are in the USA).

      Sole proprietor with a DBA (Doing Business As) or Fictitious Business Name (each state calls it something different

      Registered company such as a Single Member LLC (not recommended), multi-member LLC, C Corp, S Corp, partnership etc.

      Mainly the purpose of the DBA is when the merchant charge shows up on the buyers credit card it shows as mywebstore versus john brown. Instead, your DBA certificate will say something like John Brown Doing Business As mywebstore.
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