Register Your Business and Maximize Profits

A step-by-step guide to registering your business and obtaining resale certification. Why? No sales tax on goods you resell! Read on...

Starting a business as a distributor or reseller of DTF, apparel, and accessories opens up substantial opportunities for long-term profits. By officially registering your business and obtaining resale certification, you not only establish legitimacy but also unlock a range of financial advantages that can help you scale quickly and efficiently. Take a look:

• Financial and Tax Benefits: As a registered business with resale certification, you’ll be eligible for tax-exempt purchases on products you plan to resell, eliminating upfront sales tax costs. This exemption allows you to keep prices competitive while maximizing profit margins. At the end of the year, registered businesses also benefit from deductions on business expenses, which can significantly reduce taxable income, helping you retain more of your profits.
• Access to Wholesale Pricing: Obtaining resale certification allows you to register with wholesale suppliers, gaining access to exclusive bulk pricing that’s typically reserved for certified businesses. Wholesale pricing reduces per-unit costs, enabling you to buy at a discount and sell at retail prices, thereby enhancing your profit margins.
• Building Business Credibility: A registered business garners trust and credibility with suppliers and customers. Wholesale suppliers, such as alphabroder, S&S Activewear, and SanMar, prioritize partnerships with certified resellers, often providing marketing resources, product previews, and other perks to support your growth. Customers, too, are more likely to choose a business with an official presence, seeing it as established and dependable.
• Flexibility in Growth and Scaling: With a formal business structure, you can expand your offerings, secure financing, or even bring on employees to support growth. Many financial institutions and investors prefer working with registered businesses, making it easier to obtain loans or investments to fund expansion efforts.

By following this step-by-step guide, you’ll set up a solid foundation for your business, gaining the resources, credibility, and pricing advantages you need to succeed. From registration to obtaining reseller certification and signing up with wholesalers, this guide equips you to build a profitable reselling business.

Disclaimer: This is not financial advice. The following is for educational purposes. Please consult a financial professional or attorney for more information.

Starting a business as a distributor or reseller opens up opportunities for long-term profits. Follow this step-by-step guide to register your business, get the necessary permits, and sign up for wholesale accounts that will help you scale and save on taxes along the way.

Step 1: Register Your Business

• Choose a Business Structure
  • Decide on the legal structure of your business. The most common options are:
    • Sole Proprietorship: Easy to set up but doesn’t protect personal assets.
    • LLC (Limited Liability Company): Offers personal asset protection and is easy to manage.
    • Corporation: More complex but useful for large businesses.
• Register Your Business Name
  • File a Doing Business As (DBA) name with your state or county if your business name differs from your personal name.
• Register with Your State
  • Visit your state’s Secretary of State website to file business formation documents if you’re forming an LLC or corporation. Fees vary by state.

Step 2: Obtain an Employer Identification Number (EIN)

• What is an EIN?
• The Employer Identification Number (EIN) is a unique ID issued by the IRS for tax reporting purposes. It’s required for hiring employees, opening a business bank account, and filing taxes.

• How to Apply for an EIN

• You can apply for an EIN online through the IRS website. The process is free and only takes a few minutes.

Apply for EIN here

Step 3: Obtain Reseller Status in Your State

• Why Do You Need a Reseller Permit?
  • A reseller permit allows you to buy products without paying sales tax, as you'll be reselling them. It’s essential for accessing tax-exempt purchases from suppliers like 613dtf.com and other wholesalers.
• How to Apply for a Reseller Permit
  • Visit your state’s Department of Revenue or Taxation website. Look for the option to apply for a Sales Tax Permit or Resale Certificate. Each state has a slightly different process, but generally, you’ll need:
    • Your EIN
    • Proof of business registration
    • Basic business information
• Keep Your Certificate on File
  • Once approved, you’ll receive a reseller certificate. Keep this handy for tax-exempt purchases. You’ll need to share this with suppliers.

Step 4: Submit Your Reseller Certificate to 613dtf.com

• How to Submit
  • After obtaining your reseller permit, submit a copy to become eligible for tax-exempt DTF purchases.
• Benefits of Certification
  • Tax exemptions for qualifying purchases. No sales tax!

Step 5: Sign Up for Wholesale Accounts

Maximizing your profits as a reseller means accessing products at the best possible prices. The following are popular suppliers in the apparel and print industry that work with DTF transfers:

alphabroder

• What They Offer: Apparel and accessories for customization, including shirts, hats, and more.
• How to Register: Visit alphabroder.com and fill out the reseller application. You’ll need to submit your EIN and reseller certificate.

S&S Activewear

• What They Offer: A wide range of activewear, corporate wear, and outerwear for customization.
• How to Register: Apply for a wholesale account at ssactiverwear.com by filling out your business information, including your reseller certificate.

SanMar

• What They Offer: High-quality apparel, including name brands like Nike, OGIO, and more.
• How to Register: Register for an account at sanmar.com and upload your business registration and reseller permit.

Step 6: Leverage Wholesale Pricing for Higher Profits

• Buy in Bulk
  • Once you’re set up with 613dtf.com and your wholesalers, focus on buying in bulk to reduce costs. Take advantage of seasonal sales and volume discounts.
• Offer Customization Services
  • Offer more value to your customers with blanks or finished goods, driving up margins
• Focus on Niche Markets
  • Target niche audiences who are willing to pay for unique, high-quality customized apparel, whether online or POS.

Build a Profitable Reselling Business

By following this guide, you’ll have all the tools to become a certified reseller, access wholesale accounts, and maximize your profits. The key to long-term success is maintaining strong relationships with your suppliers, like 613DTF.com, and continuously providing value for your customers.