In California, Where do I start to get a wholesale license, and is there any other licenses I need?

October 3rd, 2009 | by admin |
Vampireshark asked:


I am interested in starting an internet business for pet supplies. I dont really even know where to start. Are there other lisences I need for an internet business in California other than a wholesale lisence?

Wholesale Scented Candles
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    1. One Response to “In California, Where do I start to get a wholesale license, and is there any other licenses I need?”

    2. By Diane A on Oct 4, 2009 | Reply

      There is no such thing as a wholesale license. What you are thinking of is called a resale license & it is from the state franchise tax board. This allows you to buy wholesale which is strictly defined without sales tax because YOU collect the sales tax from your buyers & send to the tax board. This license (plus a business license) allows buying at a “wholesale” price (which depends on many things) which you can “mark up” which then becomes “retail.” In some instances the “wholesale cost is only a few %’s less than retail (but again, No sales tax). In other instances it can be more. Often the larger the order (buying in bulk) makes the % greater. You would need to start a business account/agreement with a supplier in order to buy from them to re-sell, This may require a business credit card or checking account. Do not forget that you need to also factor in shipping & packing costs. You may find that you can not compete with places like PetCo.

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