Among the suitable investments, a business person should consider acquiring a wholesale license for their business. That will highly depend on how you intend to sell products and services. One of the most vital things about obtaining an Illinois wholesale license is you never get to pay sales taxes of the bulk goods you purchase for future resale. As a result, you can save funds.
Most of the trades need one to have a license before buying, selling, or storing particular goods in particular. In this article, the main focus is on how to get an Illinois wholesale license, but before getting to that, it is essential to understand what it’s all about.
What are wholesalers?
Wholesalers act as a link between product manufacturers and retailers who finally ensure the goods reach customers. Wholesalers purchase goods in bulk before selling them in smaller quantities at a higher price. Once you acquire a license as a wholesaler, you are permitted to buy from manufacturers directly.
Some wholesalers around Illinois focus on buying one commodity in bulk, while others purchase various products. Additional rules are depending on the kind of wholesaler you choose to be.
How to obtain the license
This is an easy framework of how to get a Illinois wholesale license for individuals with an entrepreneurial spirit, wholesaling is a one-of-a-kind career option. You get to build long-lasting relationships with multiple business owners, buy tax-free goods and earn a steady income. Before starting, ensure you follow the steps required to provide you comply with the law. The first step is;
- Register your business
If the business is new and you are looking to buy goods in bulk and resell them in smaller quantities, you register the company. After that, contact the relevant authority to obtain a Federal Tax Identification Number. Applying for the number is free. After a few weeks, you receive the number, which makes you ready to conduct business and employ workers.
- Get hold of a sales-tax license.
After a successful registration of your business, the next step is acquiring a sales tax license so that you can charge sales tax on every good you sell. The license terms of the license in Illinois may differ from other states. To acquire the license, contact the state’s tax office. The fee charged is reasonable.
- Acquire a wholesale license
Contact the revenue office to apply for the license. You will be required to pay a reasonable application fee. Once your business is licensed, you are good to go on with your business. It would be best if you involved your lawyers in the process of getting well acquainted with the exemptions you are eligible for before receiving your license.
As the years pass, it is becoming easier and easier to conduct business in Illinois since the services are quicker and it takes fewer days to register a company. The fact that you can access almost all services online ensures you can get your wholesale license at the comfort of your home or office. The above steps illustrate how to get an Illinois wholesale license.