Don’t be intimidated about meeting the requirements for purchasing from a real wholesaler, it will enable you to get better deals. Here are the four steps you’ll need to take to get the proper certification.

1. Register a business name

If you plan to do business in a name other than your personal name you can register what’s called a “Fictitious Business Name” or “Doing Business As” name (DBA). Many wholesaler will only sell to you if you have a business name registered.

Think of a good name for your new business. Something that is memorable and short usually works well, and which describes your product or service well. You can do a search online to see if anybody has trademarked your name yet. Go to USPTO to do a U.S. government Trademark look up. When you open that page, just click on the top middle link “trademark look up: to perform a search.

How to register DBA
One you’ve picked out a name, you can register your business name simply by going to your County Courthouse and filing to register a “trade name”. There’ usually some nominal charge, such as $7-15

Having a registered business name gives you the benefit of being able to establish a bank account or merchant account under your business name, as opposed to in your real name.
 
2. Federal Employer Number

* Federal Tax ID
* FEIN
* EIN

All these terms refer to the same thing.
An EIN number is only required if:

- The business will have employees; and/or
- The Business operates as a corporation or partnership

If operating the business as a sole proprietorship and you answered no to the above questions, there’s no need for an EIN number. Taxes are reported by using your Social Security number.

How to get Federal Tax ID
Remember, if you pan to be a sole proprietor of your business, you won’t need to get a Federal Tax ID. Your Social Security number will be sufficient to use when doing business with wholesalers. However, you will need this if you plan to incorporate or have employees.

To get your EIN number, got to IRS website, and apply online. It takes few minutes and it’s free!
 
3. Get a Reseller License
It’s the most important thing to do if you want to buy at wholesale. This is a state issued license, which can be called on of 5 things:

* Sales Tax Certificate
* Reseller’s permit
* Seller’s permit
* Wholesale license
* Reseller’s license

Whatever name used, it all refers to the same thing. This license gives you the legal right to not pay taxes on merchandise you buy from a wholesaler. How, the government still gets its tax later, when you resell it. With this license you can buy products tax free from a wholesaler but you must charge tax to your customers. However, you’re only required to charge tax to customers who reside within the same state as your business.

How to get one:
Contact the appropriate state agency. This could be called the State Department of Treasury, or State Department of Taxation, or State Department of Revenue, depending on your state. You can usually find listings for this agency in the government section of your phonebook.

The cost for this license will go from free to between $10-$20, depending on the state.
 
4. Business License
You may or may not need to get a business license. It depends on your state. If you thinking about starting your own business and hiring employees, there are responsibilities with both the state and federal government. If the business is a corporation, anyone who performs services for the corporation or receives payment, including an “owner” is considered an employee. Tax, insurance and regulatory requirement may therefore apply.