When starting your business, it is very important to do it right, by getting all of the drop ship legalities together FIRST! By drop ship legalities we are referring to your tax id number/resale license (or sellers permit depending on the state). If you skip this very important step and try to begin selling first, you will find many pot holes in the road along the way. Starting with this way first not only makes it legitimate, but it also makes it more "real" for you, and opens up a lot more doors.
*** NOTE: A true dropshipper will not work with any company that does not have a t.i.d. number.
By drop ship legalities, we are referring to really only 1 main legal process you need to go through while setting up your business. And that again is getting a tax id number. In order to get this you must decide if you are going to be a sole prop., an incorporation, a limited liabilty corp., etc. Once you know this, and you have your address (yes it must be a physical address not a P.O. box) you can fill out the online form and get a number within minutes. It is really quite simple. Just go to your state's site, or checkout legalzoom.com.
The importance of this step cannot be overlooked, as ALL of the "true" dropshippers require this because they have to report to their state with their tax information. When a drop ship company is dealing to a reseller (that's you), they do not charge tax on the products, they leave that up to you to do, and for you to pay Uncle Sam. Companies that do not require your legal information are probably not legitimate wholesale dropshippers.
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