government agency focused on supporting small businesses Go to source There may be states where you operate only temporarily, and determining whether your operation constitutes вЂњdoing businessвЂќ will be necessary before seeking a license. This seems obvious, but вЂњdoing businessвЂќ sometimes has a legal definition that you will need to review. Identify the state or states where you do business.

The federal government also oversees interstate commerce, so if you are involved in distributing products across state lines, you may need a federal license. The federal government is concerned with controlling safety and participation in a variety of particular fields.Therefore, a wholesale license allows you to buy from the manufacturer and sell to the retailer without paying tax. As a general policy, the same item should not be taxed multiple times on its way from manufacturer to consumer. State and local governments have an interest in collecting sales taxes on the items you provide.Federal, state and local governments regulate wholesalers and issue licenses for several reasons: X Trustworthy Source U.S.

The retailers then sell the product directly to customers. Someone in the wholesale business is a kind of вЂњmiddleman.вЂќ In general, your business is to buy large quantities of some product from one or more manufacturers and then resell them to retailers. Understand the purpose of a wholesale license.

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