Obtain Your Free Seller’s Permit

There are a lot of important steps to take when starting an online boutique in 2024. It’s easy to get excited about buying inventory or making 6 figures but none of that happens without making sure you’re a legit business first. And a key step in that process is having the right wholesale license to run your online boutique!

What Is A Seller's Permit?
Depending on what state you live in, a wholesale license might be referred to as a seller’s permit, sales tax permit or sales and use tax permit.

A seller's permit is a state specific license that allows business owners to purchase merchandise at wholesale prices directly from wholesale vendors and manufacturers without having to pay sales tax on the merchandise.

Once you start selling to customers that live in your state, you’re required to charge sales tax on the merchandise they purchase from your boutique. And then you’ll remit (give back) the tax you’ve charged your customers to your state government when you file your business tax return. So, in essence, you’re collecting taxes for your state.

        Why You Need A Seller’s Permit To Start Your Online Boutique
        You’ll want to obtain a seller’s permit before you purchase inventory for your boutique considering that most vendors and manufacturers require proof of a seller's permit. In addition, depending on the vendor or manufacturer, they may have a supplemental application process that must be completed before allowing you to view or purchase their merchandise. 

        In addition, If your state requires your boutique to have an active seller's permit, then you’re boutique is legally mandated to have one. No one wants to get in trouble with their state government for (1) not charging sales tax when they were supposed to or (2) charging sales tax and not remitting it when they should.

          What You'll Need To Obtain A Seller's Permit
          Before you apply for your seller's permit or sales tax license, you’ll need to have a legally registered business. That means having a business name and legal structure. This could be a sole proprietorship, LLC, partnership or corporation.

          Once you have legally registered your business you'll need to get your federal employer identification number or EIN. It’s essentially a social security number for your business and will be used when you apply for your seller's permit and other tax purposes.

          With your LLC and EIN, you can apply for a business bank account. That’s what you’ll use to remit or pay back the sales tax you collect. Keep in mind, you can obtain your seller's permit with just your LLC and EIN, however eventually you'll need a business bank account.

          How To Obtain Your Free Seller's Permit
          Most states require retail and e-commerce businesses to obtain a seller's permit, however in some states certain items such as food or clothing are exempt.

          Currently there are five states that do not require a seller's permit:

          • Alaska
          • Delaware
          • Montana
          • New Hampshire
          • Oregon

          If you don't live in any of the five states listed above you can obtain your free seller's permit through your states Department of Tax and Fee Administration or click the link down below and scroll down to “Overview By State” to directly apply!

          Apply for Your Seller’s Permit By State 👈🏼