1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

Business license

Discussion in 'Business & Tax Advice' started by Kaparadox, Oct 10, 2016.

  1. Kaparadox

    Kaparadox Junior Member

    Joined:
    Aug 15, 2016
    Messages:
    122
    Likes Received:
    12
    Gender:
    Male
    Okay so i have a supplier that requires a business license.
    The supplier is from the US and i'm outside of the US .
    Can i use a local license or there is any easy alternative that i can get online for free/cheap?
     
  2. Capo Dei Capi

    Capo Dei Capi BANNED BANNED

    Joined:
    Oct 23, 2014
    Messages:
    754
    Likes Received:
    1,734
    Do you mean import/export license or a registered company?
     
  3. Kaparadox

    Kaparadox Junior Member

    Joined:
    Aug 15, 2016
    Messages:
    122
    Likes Received:
    12
    Gender:
    Male
    I think registered company

    I plan to dropship and my supplier requires a business license
     
  4. Vapys

    Vapys Regular Member

    Joined:
    Aug 17, 2016
    Messages:
    291
    Likes Received:
    138
    It's free at( irs dot gov)
     
  5. RuthSam

    RuthSam Jr. VIP Jr. VIP Premium Member

    Joined:
    Mar 19, 2010
    Messages:
    3,813
    Likes Received:
    976
    Gender:
    Male
    Home Page:
    business license for this purpose??! if you have a registered company it should be sufficient.
     
  6. toml3030

    toml3030 Elite Member

    Joined:
    Aug 16, 2014
    Messages:
    2,186
    Likes Received:
    743
    I thin he means resale number, which you get at the county in the us.
     
  7. Kaparadox

    Kaparadox Junior Member

    Joined:
    Aug 15, 2016
    Messages:
    122
    Likes Received:
    12
    Gender:
    Male
    How do i do that
     
  8. RuthSam

    RuthSam Jr. VIP Jr. VIP Premium Member

    Joined:
    Mar 19, 2010
    Messages:
    3,813
    Likes Received:
    976
    Gender:
    Male
    Home Page:
    Ask him to send you an sample, or if he knows where you can get this in Europe. I don't know about this, have never heard about it in Europe unless what you sell requires special permission or a license. Bur for the purpose you describe I can't see why you should have a license nor where you would get this from!
     
  9. Kaparadox

    Kaparadox Junior Member

    Joined:
    Aug 15, 2016
    Messages:
    122
    Likes Received:
    12
    Gender:
    Male
    him is the supplier?
    I am a bit confused

    Where do i open up a registered company
     
  10. Steatem

    Steatem Junior Member

    Joined:
    Aug 1, 2016
    Messages:
    128
    Likes Received:
    26
    Gender:
    Male
    Occupation:
    This
    Starting a registered company is an expensive exercise - at least where i'm from. I'm not sure what country you're in but you should be able to start a business with a business name, tax number etc. By the sounds of it he just wants to make sure your not some 14 year old kid, and actually have a legitimate business so he isn't wasting his time.
     
  11. RuthSam

    RuthSam Jr. VIP Jr. VIP Premium Member

    Joined:
    Mar 19, 2010
    Messages:
    3,813
    Likes Received:
    976
    Gender:
    Male
    Home Page:
    You can register a company online in the UK for just $100 - if you can't do it where you live!
     
  12. Kaparadox

    Kaparadox Junior Member

    Joined:
    Aug 15, 2016
    Messages:
    122
    Likes Received:
    12
    Gender:
    Male
    any cheaper solutions?

    and it acts as a business license when dealing with suppliers?
     
  13. BHopkins

    BHopkins Moderator Staff Member Moderator Jr. VIP

    Joined:
    Dec 31, 2010
    Messages:
    2,432
    Likes Received:
    1,521
    Gender:
    Male
    Occupation:
    ORM and SEO company owner
    Location:
    California
    Home Page:
    I don't know why someone would be asking for your business license. I've never been asked for a business license. Tax ID number yes, but business license? In the US, most individual cities or counties grant the business license and nobody should need that as it's not standardized in any way.

    I would ask them exactly what they're looking for as a business license doesn't make sense to me.
     
    • Thanks Thanks x 1
  14. toml3030

    toml3030 Elite Member

    Joined:
    Aug 16, 2014
    Messages:
    2,186
    Likes Received:
    743
    Because in the US, if you do a B2B transaction you do not have to collect sales tax, but if you sell to the end user you do. If you have a customer's business license (also called resale #) on file you do not have to collect a sales tax on that sale. It's a very common requirement if you purchase goods for resale. In California, you have to collect a valid resale number for each wholesale customer or you get a massive fine.
     
    • Thanks Thanks x 1
  15. toml3030

    toml3030 Elite Member

    Joined:
    Aug 16, 2014
    Messages:
    2,186
    Likes Received:
    743
    I am a manufacturer and wholesaler in US, and I am required by the state to collect business license (also called resale #) so that I do not have to collect sales tax from my customers. This is what they're asking, not the tax ID. Resale number is given out by the state government, tax ID is given out by federal.

    You can apply for resale # online for the state you are technically operating out of but the problem will be that you can't just get a state resale # because that info will be crosschecked with the IRS. Also if you get a business license with a state the state will want you to file taxes. You need to go full legit with federal tax id and local business license which will cost upwards of $1K or you need to come clean with your supplier and explain the situation and see if they'll work with you, as items sold to foreigners are exempt from sales tax. You may be able to technically register on your supplier's books as a foreign customer. This is what I do with my foreign drop shippers.
     
  16. Kaparadox

    Kaparadox Junior Member

    Joined:
    Aug 15, 2016
    Messages:
    122
    Likes Received:
    12
    Gender:
    Male
    [​IMG]
    It states there business license..
    Resale number/Tax number/whatever can be a good alternative?
    So i should ask them to sign me as a foreign costumer?
    I'm still pretty confused
     
  17. toml3030

    toml3030 Elite Member

    Joined:
    Aug 16, 2014
    Messages:
    2,186
    Likes Received:
    743
    They are two different things. One is not alternative for the other

    Resale # = Business License = A license issued by state government for collection of sales taxes. Most businesses that sell to the end user must collect sales tax by law. If you sell merchandise to another business for resale, you do not have to collect sales tax if you have the purchaser's Resale #/Business License on file. This is what your supplier is asking for, because if you don't have this on file from you he must collect sales taxes from you.

    Tax ID = A license issued by federal government for collection of income taxes. Your supplier doesn't need this on file in most cases.

    If you go legit, you will need both, as most state government and the federal government share data.


    This would be the best solution for you, because the supplier does not have to collect sales taxes for items sold to foreigners for resale. For example, I'm in US and Company X buys from me to be drop shipped. I would create invoices for Company X with Canadian Address as the business address, and your customer's address as the delivery address.
     
  18. Kaparadox

    Kaparadox Junior Member

    Joined:
    Aug 15, 2016
    Messages:
    122
    Likes Received:
    12
    Gender:
    Male
    Is that so easy?
    Just asking my supplier put me under a foreign customer?
     
  19. toml3030

    toml3030 Elite Member

    Joined:
    Aug 16, 2014
    Messages:
    2,186
    Likes Received:
    743
    Yes, it's that easy if your supplier is willing to do it. Just contact them, and tell them that you are outside US and thus you have no resale number.