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How do you get a wholesale license?


Robes
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Hey gang,

As I become less and less able to run around and be a nurse, I'm trying to think of things that I would love to do for a job.

One of them involves making jewelry and such. I know I won't be able to replace my income completely, but every little bit will help me not have to run around.

Problem is, I don't know how to go about getting a wholesale license and all that. I did a search on the net and it only gave me a gazillion choices, so naturally, I'm overwhelmed. I can't sit at the computer long enough to sort through it all...

I'm hoping someone who's gone through it can give me some easy answers. I'm in Georgia, if that matters. Another thing, do I need a tax ID number? How do I get that, or is it the same thing?

<<sigh>>

It's tough to be the head of a household. I'm sure God didn't mean for women to handle it all, alone....but that's the topic of another thread...

hugs,

Robi

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i SELL jewelry. i dont make it but i am a jewelry advisor. the company is lia sophia. we do in home parties. the money is GREAT and you make your own schedual. you can go to my website and check it out. www.liasophia.com/sami i really enjoy it. and you dont need a license or anything. if you would like more info you can email me ! k_jade05@yahoo.com

sami

:)

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In California, you have to do four things in a specific order if you want a name other than your own for the business.

1. Go to your county seat and file a fictitious business name request. This will be the name you do business as like "SuperCool Jewelry" When you file, they will let you do a computer search to see if anyone else is using the name.

2. Go to the local newspaper and run a classified ad in the legal section identifying yourself and your fictitious business name. It's all explained on the paperwork the county gives you. You just take it to the newspaper and pay for the ad.

3. Take proof of the filed and run ficticious name request to your local bank and open a checking account in that name.

4. Contact the State Board of Equalization to get a resale certificate.

Note that the bank won't open an account without the ficticious name paperwork and the state won't give you a resale certificate without the bank info. So it has to be done in order. You will also need a city or county business license, but I don't think it's required in order to get the resale certificate. If you just want to do business in your name, you can skip steps 1-3 and just get a resale certificate using your personal checking account.

This is what I did about 12 years ago. I doubt that it's changed much.

Just wait until you want to become a corporation :confused:

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Thanks for the answers, ya'll!

I really just want a wholesale license so I can buy the stuff to make jewelry at wholesale prices. And then, if I want to sell some of it on, say, ebay, I want to be legit. Is this what I need to do? Get a wholesale license and then a tax ID?

I hadn't even thought about setting up a name but I love the "SuperCoolJewelry" name, Jim! LOL! :spy:

Sami-Jade,

Thanks for the lead! I'll certainly look at your website but I'm not sure I'm the best one to be doing home parties. As much as some of the people here will argue the point, I can be downright shy and unsociable at times! Actually, I have fibromyalgia and it makes me extremely exausted (and painful) at times, so much so that I hate making plans ahead of time. I don't even like to date much because if I make a date on Monday, usually by Friday the LAST thing I want to do is go out! I don't know if I'd be the best to book a party and then have to show up and smile at people. Problem is, if I look at your web site, I might just buy a bunch of jewelry for myself!! :biglaugh:

Someone here used to make jewelry. I've forgotten her name now...but it seems like we weren't the best of friends (my fault, I'm sure!). She lived up in the northeast in Cape Cod or something like that. Does anyone know how she sold her stuff?

Thanks again!

hugs,

Robi

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www.liasophia.com/sami

Wow, Sami, the jewelry is beautiful! What a great thing to be doing! How can you NOT make money with that?

If I get to feeling better, I'll let you know. It seems like a great way to make money...by providing people with jewelry!

I put your website address here again so people could take a look.

Robes

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I'm not so sure you need a wholesale license in Georgia if all you want to do is buy at wholesale prices. You might need a business license to qualify for those prices or to open up a bank account tho I am not sure you do. I'd look into getting a business license but take into consideration home businessess may not be permitted where you live.

I bought all sorts of woods wholesale when I was turning and never ran into a problem. When I wanted to buy wood I'd call the company and discuss what they had in stock and how much they wanted for it, sometimes we'd work out a package deal. I sent them money they sent me wood. I've still got a block of ebony and possibly the biggest chunk of Gonco Alves in Georgia from that buying spree.

.

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You can apply for a business license and then request a tax id from the dept or revenue or you can get a business license and use your social or you can not get a business license and use your social. I was never asked to show a business license or tax # (other than my social) at any of the shows I did. I did have to buy a temporary business license for one show but that was the exception. You are required to collect and turn in sales tax and of you will want to set up a bookeeeping system to track income and expenses for income tax purposes. Other than that there isn't much more to it except producing and selling which is a whole other beast.

I did everything from antuque tractor shows to the Sugarloaf show and managed a farmers market as well , and believe me, no two shows are identical. They take alot of energy to pull off and setting up an easy up is anything but.

Good Luck

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Hey gang,

As I become less and less able to run around and be a nurse, I'm trying to think of things that I would love to do for a job.

One of them involves making jewelry and such. I know I won't be able to replace my income completely, but every little bit will help me not have to run around.

Problem is, I don't know how to go about getting a wholesale license and all that. I did a search on the net and it only gave me a gazillion choices, so naturally, I'm overwhelmed. I can't sit at the computer long enough to sort through it all...

I'm hoping someone who's gone through it can give me some easy answers. I'm in Georgia, if that matters. Another thing, do I need a tax ID number? How do I get that, or is it the same thing?

<<sigh>>

It's tough to be the head of a household. I'm sure God didn't mean for women to handle it all, alone....but that's the topic of another thread...

hugs,

Robi

Hey, Robi! :wave:

Long-time, no-see! Glad to see you've come up for air...

This isn't an answer to your question (sorry) - but have you considered becoming an auditor for medical insurance companies (the dark side!). I have a friend who's an RN and got sorta burnt out. She went into auditing and makes great $$$ working for a company that's hired by medical insurance companies to audit itemized bills. She gets a pecent of whatever monies she recovers that the insurnace company paid out to the hospital - she does very well!

Just a thought... :wink2:

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Charley-doll! How are you?? The time away was good. I found I got burnt out on everything after my brother died...and it all crashed in on me. I had to be strong when it was happening and then when it was over, the grieving and everything got to me. It's good to be back and see my old friends!

I've thought of something like that. I may reconsider. In fact, I just sent an email to someone asking them about being a transcriptionist since I type well and know all the medical terminology.

I keep saying I'd hate an office job because I love nursing so much...but maybe it's just that I'm afraid of the unknown. Who knows?

Whatever I do, I can do it and still work in the hospital a shift or two a week, so I don't know why I don't just go for it. One thing is that I love working only 3 days a week (as a nurse I work three 12 hour shifts a week). The other thing is that I love working night shift. The other thing is I love being independent and nursing is kind of independent.

I appreciate your suggestion and I'll look into it. When you say good money, what kind of money is good to you? I'm used to making about $35-40 an hour, but it is at a high cost to me! Will I be able to make that much doing auditing?

(((((Charley))))

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Hiya Robes, good to "see" you again! You were one of the first to greet me when I came to GS, and I often think of those first chat nights.

This is in reference to CO, but I would think it applies to you also. Generally, one purpose of having a tax ID number is so that you do not have to pay sales tax on the raw materials you BUY. If you don't pay the sales tax up front when you buy, you have to collect and turn it in when you sell.

At least in Colorado, there is no sales tax on the "labor" part of the transaction. i.e. I buy my building materials, and pay the sales tax on them at that time. I do not then collect sales tax from my customers, and I do not then have to do the bookeeping and send the tax collections to the state. In the case of my business, (home remodeling), there is no sales tax due for my installing the materials.

I may be wrong, but I do not see why there would be a sales tax on "assembling" jewelry from raw chain, stones, pins or monofilament line. At least not in this state.

In my experience, you register a business name with the state, this allows you to open a business bank account. Having a business bank account allows the "wholesalers" to sell to you at "wholesale" rather than retail prices. However, these days, there is often little difference between the two. The prices you pay for raw materials is likely more determined by the quantity you purchase at one time, and WHERE you purchase it than whether you have a business license or not.

Whether you use a business name and Federal ID number, or your personal name and your SS #, or a business name and your SS#, if your gross sales exceed a minimal figure, you will need to file additional (Schedule C) tax forms, pay self employment tax, etc. (of course these taxes are based on your profit from the business, after deducting all business related expenses)

wow, this is getting complicated, so, to sum up my input, if you want to be all on the "up and up" you probably do some or all of these:

1) To open a business bank account, you WILL need a registered "trade" name (it can be your own name, if you want to DBA (do business as) your own name, but it needs to be registered at the state level. (Maybe at the county level in Georgia?)

2) You MAY need a business bank account (whatever the name you use) to buy "wholesale", which may or may not save you money buying material.

3) You will need a STATE sales tax license to avoid paying sales tax when you buy, you may ALSO need a LOCAL sales tax license also. If you don't pay sales tax when you buy, you WILL need to collect sales tax when you sell, and keep books to account for these tax collections. (You likely get to keep a very small portion of the collected tax as a fee for collecting it for the state and sending it to them)

4) If you will have employees (not likely at first anyway) you will need to get a Federal Employer Tax ID number. If no employees, then you can use your own SS# (advised). the bank will ask what number you are using when you open your business account, if you decide you need a business account. (I recommend having one, or at least having a separate personal bank account which you use ONLY for business purchases and bills.)

5) The reason you should have a distinct account for business is to be able to more easily do your Schedule C federal tax return each year. all you business bills, (materials, phone, cellphone, vehicle expenses or mileage, travel etc. are deductible from your sales, to figure the income tax and self employment taxes due each quarter.

Sooooooo, are you having fun yet????????? Just think of the thrills of setting your own hours, (except whenyou need to meet a deadline), taking vacations whenever you want, (except when you are behind on supplying a customer's order), the freedom of being your own boss (except for all the paperwork you have to do to comply and protect against audits by the state and local and federal taxing authorities) ah well, all those privileges, so little income.

You might consider not being so formal about it, you can probably shop around on ebay or elsewhere and get better prices than what you think you will get at "wholesale" local suppliers. If what you are looking for is to just make a little 'mad money", you can do this much less formally than all the hoops with all the licenses.

As my karma says, this advice is worth all you paid for it.

Good luck!!!!!!!! If you choose to accept this mission........

~HAP

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Thanks, Hap! It's good to see you again!

Hey, do you remember my IM name? Because I don't and I can't log in to the damn thing if I can't remember the name!! Let me know if you know it...PM me. I've changed computers twice since and now my son is not home to tell me how to retrieve everything.

Thanks for the info. If I have to set up a bank account then I'd better get busy making stuff!!

Hugs,

Robi

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LOL Chas, promises promises :wink2:

I remember all those outdoor shows I did during the summer not only was it hot and muggy but I had to tote tables chairs displays merchandise and my tent sometimes a quarter mile just to get to my booth. Then I'd have to set it all up and put on a happy face for my customers. Somedays I'd be worn out before the public even arrived...

I redesigned my booth set up several times to ease setup, breakdown and transportation issues. I used 1/4" plywood for my display stands and they doubled as storage and transport boxes. I made my own risers out of 1/2" ply and pretty much designed everything to save weight and space. I even built a lightweight fireplace mantle and had a friend paint a roaring fire on it.

Have you talked to other jewel craftsmen about how they got started? A good rag to read is the craftsman report, it gives tips and information on shows, not all shows are created equal.

Edited by herbiejuan
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Herbs...

I'm not interested in selling anything at craft shows...for the very reason I am having trouble being a nurse! I am just exploring options should I want to sell via the internet. There's no way I could trudge anywhere with a stool, let alone a table and things to sell.

I'd be interested in the craftsman report, anyways. How do I get hold of one?

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hey Robes... email Onion Eater, he makes jewelery... what herbie and jim and others have said is right... there should be something on the Georgia website... if not... at least in your local Chamber of Commerce website...

My wife's a paralegal and they have an RN on staff who is their 'legal expert'... all she does is read legal stuff (testimonies, etc) and then comment on them... very little stress... and no blood (mostly)...

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You can find the craft report online, I've not subscribed to it in 8 yrs. Their primary audience is folks working in jewlery, fine glass and pottery, a friend of mine was featured in it once. It will give you a clue to what people are buying in terms of style and color, it'll also give you an idea of what shows were profitable and in what art form.

I began turning in '91, my first real show came three years later. I worked at my craft for several years before I was able to enter the true marketplace where I could make a decent profit turning. I knew this before I began the process.

I've seen lots of folks selling stuff at markets and tons of sites up from folks selling woodturnings and most of them are gone after a year or two. This is mostly due to an unrealistic expectation of the market.place Those sites that go up and stay up usually belong to someone who holds a regular job, has supplimental income or are owned by retired folks who use the extra income as mad money. It can be expensive and time consuming to compete in this marketplace.

The craft/fine art market is tough to break into even with good product and goals. I'm not saying this to squash your goals but it is a fact you should consider. .

I hope it works out for you

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Herbs,

I wouldn't ever completely quit my day (ok, night!) job. I only want to do this to make a little extra on the side from my hobby. I like making the stuff, but how much jewelry does one really need. OK, maybe that's a stupid question, but you know what I mean.

Anyways, I'd do it on the side, kind of like just making sales to support my hobby. The other thing is that since my kids are now out of the house at college, and since I don't go out much because when I'm not working I need to be resting, I have plenty of time to do something like this. May as well make money out of it. I also take painting classes...oils and watercolors...but I haven't become brave enough to think I could sell art!!

Thanks for the suggestions.

And Tom, I'll email Onion Eater. Thanks for the lead. That's what I wanted to do...talk with people who do this stuff. You guys have been very helpful!

Herbs...who was that up in the northeast that used to make jewelry? You guys used to talk on the phone and stuff, I think you even met in person or something. I can't remember her name but I know she lived in a cottage on cape cod or something. Did she sell her jewelry or just make it for herself?

hugs,

Robi

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It was Wacky Funster and I think she does shows n such.

I think you should do fine with online sales.

I paid alot of money to get decent photo's of my work, I think it cost me $300 for a set of 8 but they were professionally done photos and got me into some hard to get into shows. Some shows had so many applicants, the jurors spent less than 2 minutes considering an application. Since your potential customers first impression of your work is the image they see of it's important to make a good first impression. Craft Report did a series on taking excellent photo's a few years back and there are a few books on the subject. I started to build a photo box as suggested by the Craft Report but ended up contracting the work out as I was quickly running out of time and patience. In any case I got into the Sugarloaf which was the whole point of the exercise.

I've picked the gouge up again and I'm working on pieces for a show. I'm not in any hurry, a welcome reprieve from my last year of shows when I had 8 shows and was cranking work out as quick as I could.

When I started my first piece in this series I had to remind myself I was doing this for fun and NOT for a show, my second piece went much easier :) but I am considering a show...

My first real show was the Off the Square Art Show in Carrollton I'd like to do it this year or next. I'm in no hurry. A friend of mine owns a gallery and has said she'd like to show my work, I'm thinking of putting a few pieces in there and seeing how it goes.

If I recall correctly all I wanted to do was grow garlic and turn bowls and not get all caught up in everything. Life turned out strangely.

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