If you plan on buying from Wholesale Distributors for your own stock or you intend to dropship. This is a very Informative article and if you plan on going beyond ebay with your garage sale stuff this needs to be in your plans. If you are running a retail website or would like to and you want to buy wholesale ”get legit”

There is a video at the bottom that is related. the article is from Worldwide Brands, by Chris Malta & Robin Cowie

It’s not uncommon for new Internet retailers to be intimidated by the thought of acquiring reseller certificates, EINs, and DBAs. But if you sell physical goods on the ‘net, you can’t afford to let a little paperwork stop you from experiencing the benefits of being a legally recognized business. Because, if you want to buy your inventory from real wholesale suppliers, you must be an official, legal business.

However, if the IRS were to catch a wholesaler selling tax-free goods to an end consumer, that wholesaler would wind up in a world of legal and financial trouble. So every business they sell to must demonstrate that they’re a legally authorized reseller, buying their goods for resale and not for personal enjoyment.

I’ll Need to See Some ID, Please…
As an online seller, you’re responsible to collect and pay sales tax on all sales to customers in your own state. Therefore, you’re required by law to register for a state sales tax ID (a.k.a. reseller certificate) when you set up your business. Registering is as easy as going to your state tax authority website, clicking on ‘Forms and Publications’, and filling out the registration form. (One helpful resource is TaxLinks.com, a website that provides links to the state tax authority websites for all fifty states.) Typically, you’ll use a copy of this document to verify your business’ legitimacy.

Not every state imposes sales tax on retail items, however, and that complicates the issue. If you live in a tax-exempt state, you’re unable to acquire a reseller certificate. In that case, a wholesaler will need another form of identification proving your business’ validity. Some of the most common alternate forms of proof are as follows: