Who Needs a Georgia Wholesale License?
Small businesses, sole proprietorships, partnerships, LLCs (limited liability companies), and corporations that want to buy and sell tangible goods or personal property; or businesses which lease or rent goods or personal property or that sell taxable services require a seller’s permit in Georgia.
It does not matter whether the business buys and sells wholesale or retail. When buying wholesale, the business can avoid paying sales taxes on the goods. Businesses selling at wholesale can waive sales taxes when the business provides their seller’s permit ID number.
Businesses buying at retail can deduct the sales tax paid for goods they intend to resell. When businesses sell at retail, their seller’s permit ID is used for collecting and paying sales taxes to the state of Georgia.
Is a Seller’s Permit the Same as a Business Permit?
A seller’s permit is not the same thing as a business permit or business license. Before obtaining a seller’s permit, businesses must register their business with the appropriate state and federal government agencies.
At the federal level, you will need to obtain your EIN (Employer ID Number), which is the equivalent of a social security number but used for business purposes and filing your business income tax return.
At the state level, you must submit a business license application to register the name of your business. The name could be the actual business name or a DBA (Doing Business As).