A wholesaler obtains goods directly from the manufacturer and sells them to the retailers. They don’t interact directly with the consumers. If you are a wholesaler in California, obtaining a wholesale license is inevitable. How to get a wholesale license in California can be unfamiliar, and the guide below will provide insights on the right steps and procedures to follow.
Where to obtain a wholesale license
A wholesale license in California is issued by the California Department of Tax and Fee Administration (CDTFA). The license gives you authority as a wholesaler to supply your products to the retailers. You are also granted a resale certificate that enables you to avoid the various sales taxes stipulated by law.
Who qualifies for the certificate?
The law stipulates the issue of who does and who does not qualify for the license. The state’s governing law allows issuance of a wholesale license to any person residing within the state’s territory. The person can be a permanent or temporary resident who is selling goods at wholesale.
CDTFA allows any entrepreneur to take a license so long as you are operating within California’s boundaries. If you have an office or warehouse in California, you qualify for the license. It also includes people who are operating even outside of the state but have an office IN California.
Requirements when applying for a license
You can apply for the license either through virtual sites or in the respective offices. Some of the requirements you must supply in the application procedure include:
- Social security number federal employer identification number (FEIN)
- Driver’s license
- State employer identification number (SEIN)
- Driver’s license
- Identification number
- Your address and contact numbers
- Next of kin details
- Details of your supplier
- Company’s details
Registration and creation of account
You can either opt to register yourself by filling all the relevant details on the CDTTFA online portal. You can also visit their offices and have their staff fill out the details for you. If you opt for the online method, you must create an account. In the account, there is a need to fill out relevant details about your company and the nature of the operation.
Update information regularly
Various businesses fall under different categories. If you are dealing with the sale of land or estates, the license requirements are different from those dealing with selling products such as foodstuffs. If you decide to change your line of business or add another business line in the course of business, you must update the details. Updating ensures you have the right wholesale license, and you are not operating contrary to the law.
California government requires that every business person supplying wholesale goods have the right license. The type of license depends on the type of business you are operating. However, you have the freedom to change your business, but you will need to update your license. Those operating without a license are bound to face harsh penalties or termination of their business operations.