Do I need a resell certificate of tax ID number to sell products from a drop shipper?
In order to buy from a wholesale drop shipper, you sometimes need a tax ID number, or resell certificate. The wholesale drop shipper needs to show proof to the government that they can sell to you without charging you a sales tax. However, not all wholesale drop shipping companies will ask you for this information as the tax reporting structure will vary from state to state along with a company’s incorporation or proprietorship. In addition, if you are trying to identify a valid wholesale drop shipping company, be very careful. Many middleman will also ask you for a tax ID or resell certificate as they will also avoid the taxation by claiming to sell you products at wholesale (or, they are just simply putting on a front for their scam). It is perfectly legal for them to do this practice. The IRS is solely interested in collecting tax from a company’s income, not if a company is a true wholesale supplier with wholesale pricing.
In order to buy from a wholesale drop shipper, you sometimes need a tax ID number, or resell certificate. The wholesale drop shipper needs to show proof to the government that they can sell to you without charging you a sales tax. However, not all wholesale drop shipping companies will ask you for this information as the tax reporting structure will vary from state to state along with a company’s incorporation or proprietorship. In addition, if you are trying to identify a valid wholesale drop shipping company, be very careful. Many middleman will also ask you for a tax ID or resell certificate as they will also avoid the taxation by claiming to sell you products at wholesale (or, they are just simply putting on a front for their scam). It is perfectly legal for them to do this practice. The IRS is solely interested in collecting tax from a company’s income, not if a company is a true wholesale supplier with wholesale pricing. We have have seen other drop shipping directories claim, “I
