Sellers Permit and Business License and Wholesale License?

What is the difference, I live in San Francisco, I sell handcrafted jewelry mostly via a created Facebook page, I have recently obtained a sellers permit because I will be doing a trade show in December, but I want to know the difference between the sellers permit, business license, wholesale license, and what does each of them allow you to do....? I'm so confused, thank you for you help....


1 year ago - 1 answers

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A business license lets you do business in the city of San Francisco, open a business bank account, and such. You also need to pay business taxes to the city when you have one. A seller's permit allows you to set up a table on the sidewalk or any of the various shows, like the Ferry Building. That's mostly a way for the city to make money, but you just gotta do it. There is no wholesale license, it's called a "seller's permit" and casually called a resale number. That's with the State Board of Equalization. You are making (or buying) items at wholesale to sell retail. Therefore you don't pay sales tax on what you buy, because an item can only be taxed once, by law. So, you don't pay tax on your inventory, but when you sell it you DO charge sales tax. Then you compute and file forms and pay that tax to the state, usually quarterly. Many of the truly wholesale vendors require that you have a resale number on file in order to buy from them. If you are paying sales tax on your inventory then you are paying too much. You should get a resale number but be aware that you need to be proferssional about your filings and paying to the state. Those people are merciless.


1 year ago