How To Get AWholesale License in illinois.

An Illinois wholesale license is required for any business that operates or conducts business in the state and sells goods and services. A wholesale license is also referred to as an Illinois resale certificate.

Does My Business Need an Illinois Sales Tax Permit?

Yes. Illinois requires all businesses selling tangible goods and services, whether they are a sole proprietorship, partnership, LLC, or corporation, to obtain a seller’s permit. Without one, you cannot legally operate a business in Illinois.

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Does My Business Need an Illinois Wholesale License?

Not necessarily. Illinois businesses are not required to obtain a wholesale license if they do not want one. However, there are benefits your Illinois business gains by obtaining a wholesale license.

With a wholesale permit in Illinois, you can qualify for:

Sales Tax Exemptions: Any goods or merchandise you purchase from suppliers and vendors can be purchased tax-free with your seller’s permit. When you sell the products to your customers, you collect the sales taxes and submit those to the Illinois Department of Revenue.
Wholesale Discount Pricing: Many vendors and suppliers will sell you their merchandise at wholesale prices when you have a wholesale license in Illinois. This allows your business to buy at a discount and earn higher profits on the goods sold at retail prices.

What Kinds of Businesses Benefit From a Wholesaler License?

Any business that resells goods can benefit from a wholesaler license, but certain industries find it especially useful.

Clothing Retailers: Businesses selling apparel can purchase inventory tax-free from wholesale clothing vendors in Illinois, allowing for better pricing and profit margins.
Electronics & Furniture Retailers: Stores selling high-cost items can save significantly by buying at wholesale prices and passing savings to customers.
Service Businesses with Product Sales: Salons, spas, and repair shops that sell products alongside services can lower costs and improve revenue.
E-commerce & Online Sellers: Businesses operating on platforms like Amazon or Shopify can maximize profits by sourcing inventory at wholesale rates.

By securing a wholesale permit in Illinois, businesses can reduce upfront costs, increase profit margins, and remain competitive in their industry.

How Much Is a Wholesale License?

n Illinois, the wholesale license (or resale certificate) itself is free, but there may be registration fees even if you apply directly to the Department of Revenue. A service like FastFilings can help streamline and secure the process at a minimal expense. With this, businesses can then save money when purchasing inventory.

What Documentation Is Required to Get a Seller’s Permit in Illinois?

You will need to obtain all relevant documentation relating to your business before you can apply for an Illinois wholesaler license. You will need your social security number, fictitious business name registration (DBA), employer identification number (EIN), personal references, business registration information, bank account information, and email address.

How Do You Obtain a Wholesale License in Illinois?

Step 1: Decide on a Business Structure

When starting a business in Illinois, you need to decide if you want to operate as a sole proprietorship, partnership, LLC, or corporation.

Step 2: Register Your Business

You will need to register your business with the state of Illinois to obtain a business license. The business license should reflect your business name or DBA name.

Step 3: Apply for Your EIN

You will need to apply through the IRS to obtain your employer identification number (EIN). The EIN is used to collect federal income tax for your employees, as well as to pay federal business taxes when filing annual tax returns.

Step 4: Apply for a State Sales Tax Permit

An Illinois state sales tax permit is also referred to as an Illinois seller’s permit. You will need a seller’s permit to sell goods and services in Illinois. You can register for a sales tax number at the same time as registering for a wholesale license.

Step 5: Complete Your Wholesale Registration

There are two different options for obtaining your wholesale license in Illinois. You could attempt to navigate through the Illinois Department of Revenue’s forms to find the ones you need. This can be rather time-consuming to know which forms you need to fill out and submit.

A better option is to use a third-party service, like FastFilings.com, that knows exactly what forms your business will need to complete to obtain your seller’s permit. Using our service ensures your application is completed correctly and accurately.

Additionally, you will not have to worry about delays, potential rejections for incomplete or inaccurate applications, or other such issues. In most cases, we can help you obtain your wholesale license within a day or less. Furthermore, we can help you apply for your state sales tax permit at the same time.

Is There a Difference Between a Wholesale License and Sales and Use Tax License?

Many people frequently are confused since there are several different terms used interchangeably. Your wholesale license allows you to buy goods and merchandise at wholesale prices and be exempt from paying state sales taxes.

A sales and use tax license is required to sell goods and services in Illinois. Without it, you cannot legally conduct business in the state. We understand that the terminology can be very confusing.

The main thing to remember is that you need to register for a sales tax license to obtain a sales tax number for collecting sales taxes AND you need to register for a wholesale license if you want tax-exempt status and wholesale discounts.

Does a Wholesale License in Illinois Expire?

Seller’s permits remain active when used regularly. If they are not used for an extended period of time, the state can cancel them. Before you can resume selling products and services in Illinois, you will need to reapply to reactivate your seller’s permit.

Does a Seller’s Permit in Illinois Expire?

What if My Vendor Refuses to Accept My Illinois Wholesale License?

Illinois-based vendors and suppliers are not required to accept wholesale licenses. They can still collect sales taxes on the merchandise you purchase from them. If they do, keep accurate records, as you can qualify for a sales tax credit when submitting your sales taxes to the Illinois Department of Revenue.

If your vendor or supplier is out-of-state, you will need to register for a resale certificate in the seller’s state. Before you do, check with the vendor or supplier to see if they will accept a resale certificate issued by their state for sales tax exemption.

Do I Have to Pay Taxes if I Have a Resale Certificate from Another State?

Illinois does not recognize resale certificates from other states. If you want to purchase merchandise at wholesale prices and avoid paying sales taxes, you will need to apply for an Illinois wholesale license.

How to Use FastFilings to Quickly and Easily Get a License

FastFilings makes it quick and easy to get your wholesale license in Illinois.

Here’s how it works:

Visit the FastFilings Website: Go to our online platform to start your application.
Complete the Application: Enter your business details, including your EIN and business address.
Submit Required Documents: Upload any necessary paperwork, like business registration details.
Review and Pay: Check your application for accuracy and submit the processing fee.
Receive Your License: Once processed, your wholesale registration will be sent electronically.

With FastFilings, you can get your wholesale permit in Illinois without the hassle of government forms.

Get Your Illinois Wholesale License and Seller’s Permit Today

If you are ready to start a business in Illinois, or want to take advantage of wholesale prices and tax exemptions, and want to avoid the confusion of knowing what government agency you need to apply to, fill out your application at FastFilings today! We make the process easy so you can have your wholesale license and seller’s permit quickly.

Apply for a Illinois Wholesale License!

Need help filing your wholesale license in Illinois?

Get Started!