The Process of Getting a Wholesale License


When looking for a wholesale license, there are a few things you should consider. Depending on the type of business you do, you may need only one license or many licenses.

The most common types of wholesale licenses are sales tax licenses and alcohol-beverage licenses; however, there are numerous other types out there that could be necessary depending on what your company is doing.

Benefits of the wholesale license

  • The wholesale license is one of the most critical permits for any new business to get. Sellers of products or services need it to sell their products or services without having to pay taxes on their sales.
  • It allows you to reduce the overall costs of the products you purchase since your companies are not required to pay tax on purchases.
  • It will allow you to purchase products wholesale, allowing you to get products at lower costs.
  • You can sell your goods at a higher rate because the product is not subject to taxes
  • The license provides businesses with access, thus opening up their options for suppliers that are available for them to work with.

The following are the steps to getting a wholesale license.

  1. Research Requirements

It would help if you researched what you will require for your specific business before applying for any wholesale licenses. For instance, if your company sells alcoholic beverages, then you may also need an alcohol-beverage permit in addition to a sales tax license, depending on the state in which your company operates.


  1. Research Licenses Available

After researching what licenses are required, you need to explore all available licenses in the states you may do business in. You’ll find that different stats with different licensing requirements, so it is up to you to know everything about each permit to see if you are eligible.

  1. Apply for Licenses

After you have found out what licenses are available in the states where your business is located, you need to ensure that your business qualifies for each license. If you meet all requirements, apply right away because some licenses only last a year or two before expiring.

  1. Know Licensing Rules

After you have received your wholesale licenses, you must be aware of the rules they are governed by. For example, when selling alcoholic beverages, if any alcohol that the state or local governing body has not checked correctly out makes it into your inventory, then you could be held liable. Your wholesale licenses are great tools that can give you increased flexibility in business, but if not used properly, they could become liabilities instead of assets.

When looking for a California wholesale license, it is crucial to research what licenses are available and the requirements for each license. If your business qualifies, you should apply immediately or as soon as possible because specific licenses only last a year or two before expiring. It is also essential that you know the rules by which your wholesale license governs your company. Wholesale licenses can be significant assets in business, but if not used properly, they could become liabilities instead.