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In Wholesaling and Drop shipping
This isn’t a book on how to start and run a business. There are plenty of excellent sources for that information and it’s not my aim to fill up the following pages with redundant material.
However, for our purposes it’s necessary to cover a few basics which are critical toward your success in finding products at true wholesale prices, and establishing win-win relationships with suppliers.
Do it Right…
If you want manufacturers and authorized distributors to take you seriously as a potential Authorized Dealer or Retailer, you must have (or be) a bona-fide, legal business entity.
You’ll need the proper business licenses for your locality and most importantly, a state issued Resale Certificate with your Sales Tax number.
Every company you’ll want to work with will require (at the very least) that you provide them with either your Sales Tax number, a copy of your Resale Certificate, or both.
Some will require additional documentation as well. Be prepared too for phone calls from suppliers wanting an interview prior to activating your account.
There are only a handful of states that don’t require or issue Sales Tax numbers/Resale Certificates.
If you reside or conduct business from one of these states, let the supplier know this and they’ll work with you to provide alternative documentation. It’s not a problem because they’re well aware of this fact.
