How to Get a Plus Size Clothing Wholesale License in California

The plus size clothing wholesale business in California comes along with some challenges related to legal and license matters. This is an all-inclusive guide detailing how to get a wholesale license and other considerations when starting your plus size women's clothing wholesale business.

Do You Need a Wholesale License for Your plus size clothing?

Resale License vs. Seller's Permit:

A resale license is required if you will be purchasing items in quantity without paying sales tax. You can purchase from wholesalers/manufacturers without paying sales tax with this license since you are going to resell those items.

A seller's permit is required for any person who sells tangible merchandise subject to taxation in California. You will need this if you're selling clothing, including plus-size, to retailers.

Generally, when you are going to sell any taxable goods, either retail or wholesale plus size, you are required to get a seller's permit.

Differences:

Resale License (Wholesale License): Used to buy items without paying sales tax.

Seller's Permit: Required to sell taxable merchandise.

Business License: Allows a person to conduct business within the city/county. This may be separate from the seller's permit.

How to Get a Seller's Permit

Determine Whether You Need a Permit:

If you sell anything subject to sales tax, you'll need a seller's permit. Businesses that sell directly to the public, manufacturers' reps and those who lease space to a business are required to be licensed, too.

Where and How to Apply: You can apply for your seller's permit in several ways:

Online: You can apply online on this website. This is generally the fastest way to apply. You can complete your application online or download and mail it.

By Mail: You can request a paper application by calling the CDTFA at 800-400-7115. Please fill out the application and mail it back using the enclosed address.

In-person: You can apply in person at your local Field Office of the CDTFA. You can often get immediate help and have access to information specific to your type of business.

Information Needed: Be prepared to provide the following:

Social Security Number (or Federal Employer Identification Number)

Full name, date of birth, and address

Business name if different from your name

Bank account and estimated sales per month information

Details of the merchandise you will sell- what and how much you expect to sell

Business Legal structure- individual, partnership, LLC, etc.

Description of Goods Sold: Describe products you intend to sell with clear descriptions. In case you have more than one kind of product, mention each product separately to distinguish between classes.

Understanding Tax Responsibilities: After you are licensed, you are responsible for collecting the appropriate sales tax from your customers. Stay up-to-date with current sales tax rates by contacting the CDTFA.

Temporary Seller's Permit

If your resale business lasts less than 90 days, such as pop-up stores, you can obtain a temporary seller's permit that will exempt you from paying sales tax on merchandise purchased for resale.

Benefits and Responsibilities of Licensing

Tax Exempt Purchases: You do not pay sales tax when purchasing wholesale goods that are intended for resale.

Legitimacy: With the proper licensure, it also shows legitimacy in your business. It will be easier to create a relationship with vendors if your business is properly licensed.

Compliance: With a seller's permit, you run the risk of facing hefty fines and penalties, so in order to avoid getting entangled with the law, one must comply with the registration.

Breaching these requirements will close up access to numerous vendors and open up the option for vendors to sue, not to mention face the legal ramifications of not having a proper seller's permit.

Tax Accountant: Have a tax accountant or business advisor who understands California's rules and regulations to ensure you are doing everything you need to do and taking all of the deductions to which you are entitled.

Local Business Licenses: Reach out to your city and mention the county government office and ask if there will be any local business licenses to secure along with your state license.

To keep the right track and make the business prosper, records of the sales tax and business transactions need to be maintained.

Conclusion

First, you need to find your licensing need in order to sell plus size clothing business wholesale in California. Second, fill out the form and make sure you follow any local regulations. You will have a good structural foundation to stride confidently across the marketplace if you follow the steps above.

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