Business & Finance Taxes

How to Buy Things Wholesale

    • 1). Apply for a federal tax ID. To do so, simply go to the IRS website and file a 1099 application. Alternatively, if you have ever worked as an independent contractor and have filed a 1099 in the past, using your nine digit Social Security number works as your tax ID.

    • 2). Apply for a vendor license in the state of your residence if you operate your business in person as opposed to online. If you're running a mail-order or online business, a vendor's license may not be required. Check with your local chamber of commerce to be sure of the rules within your city, county or state.

    • 3). Search for wholesale vendors online. Some wholesales offer an option known as wholesale to the public. In this case, no credentials are needed to purchase the wholesale items. Other companies require that you sign up and pay a minimum order fee and provide proof of a tax ID or vendor's license.

    • 4). Find wholesale companies near your state or, at the least, located in your country. However, when ordering wholesale electronics, Japanese and Chinese wholesale companies offer some of the lowest price lists, as of 2010.

    • 5). Keep a log of the wholesale companies with which you are satisfied. Only purchase from companies that are established and trusted.

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