Buying rod building supplies wholesale.
Is there anywhere that you can buy at wholesale prices without having to have a buisness license or tax ID#? Looking to build a few rods to sell for some extra cash. Not wanting to get too busy at it so that it takes up all my spare time. Thinking of building 8 or 10 rods a month. I just have no clue where to begin when it comes to getting a buisness started. Any help would be greatly appreciated!
Re: Buying rod building supplies wholesale. (leeshelton)
Buying wholesale without a business license defeats the point of having wholesale and retail pricing.
All distributors and parts manufacturers will require documentation (usually a sales license for most) to prove you are a legitimate business. This is done to protect their wholesale customers. Some may have some lower pricing, but you will have to shop around to find best retail price.
8 to 10 rods per month is more than MANY rod builders currently produce. With that volume, you need to be aware of other parts of the business.
Every time you sell a rod, you are not only subject to applicable sales taxes, but you are responsible for paying a federal sportsfishing excise tax even if you are not a formal business. The manufacturers track sales and can report back who is buying parts, so it can be traced if you are not paying the federal excise tax. Not saying it happens much, but it has happened. Uncle Sam is watching for his.
Re: Buying rod building supplies wholesale. (cidgrad)
Thanks for the info. Where do I get a buisness license? County Clerks office?
Re: Buying rod building supplies wholesale. (leeshelton)
Every state is different. I'd google a sole proprietorship in TN and see what you can find. In SC, the state provides the main retail license and then you have to have a city or county license as well. No idea how TN works.
Consider also meeting with an attorney or accountant to help determine the best legal entity type for your business. There are many tax implications to consider.
Re: Buying rod building supplies wholesale. (leeshelton)
Your best bet is to get a club membership at Versitex. The discount is pretty close to wholesale without the hassle.
However, if you are selling to make a profit, you better start a legal business. Start at your secretary of states' office.
You can also look up your local small business development center and they'll walk you through it. They are funded by the SBA.
Re: Buying rod building supplies wholesale. (PA Officer)
Thanks for all the info guys!