Q: I want to buy products wholesale to resell. Is a seller's permit the same as a wholesale license, and how do I show what I bought and sold?
A: Yes. A seller's permit is what most people call a wholesale or resale license. Here is how it works for a Los Angeles salon that sells hair products:1. Get a seller's permit2. Give suppliers a resale certificate, so you don't pay tax on inventory3. Charge sales tax on retail sales and report them on your returns4. Keep purchase invoices and sales records; products you use in the salon instead of selling are taxable to you5. Fictitious business name filing if you use a trade name
A: Yes. A seller's permit is what most people call a wholesale or resale license. Here is how it works for a Los Angeles salon that sells hair products: 1. Get a seller's permit 2. Give suppliers a resale certificate, so you don't pay tax on inventory 3. Charge sales tax on retail sales and report them on your returns 4. Keep purchase invoices and sales records; products you use in the salon instead of selling are taxable to you 5. Fictitious business name filing if you use a trade name
Q: What does a hair salon need to open?
A: A hair salon usually needs:1. Salon establishment license2. License for each stylist3. Seller's permit for retail products4. General business license and occupancy approval5. Assumed name filing