How To Become A Computer Reseller on eBay
First you have to choose a business name. Think of something that is easy to remember, something that sounds good and something that will make sense as a .com name (if selling on the web, which you probably SHOULD do).
Call your town hall and ask them where you can get a business certificate, they should inform you on which local county office to go to, to fill out the paperwork. When you get to the office you will talk to a representative who can assist you in the aperwork (minimal) and they should ask you to look in the records to make sure the business name you take has not been taken (locally). They may do this with a computer system in their office. Once you get the paper work done they should notarize it and you will be on your way.
So far you have registered with your county office as a business doing business as whomever. Now you need to be legally allowed to sell products or services and collect sales tax. This will require you to obtain a resale certificate.
You will need to register with your state as a reseller (to obtain a resale certificate, anyone who owns some sort of business has to do this). In New York the Department of Taxation and Finance handles all of this (they are in the phone book). Call the town hall to obtain the name of the agency if you are outside of New york or New jersey. Another way to do this is to simply go to a store and look at any resellers License posted in a local business and see what Department issued it, EVERY business is required by law to post these in a visible area, if you can not find it at your local grocery store as someone, they have to show you it.
The total cost for a startup sole proprietorship in New York State (all the paperwork and filings) was $25 in 1998. Each state varies but the fee is usually minimal (< $100)
You Can Become a Business Entity in Several Ways
1. PROPRIETORSHIP: A proprietorship is the simplest business entity to start and usually requires nothing more than a D.B.A. (doing business as) name and a Tax ID number (your Social Security number).
This type of ownership allows you to have the maximum control over the operations of the business, but also creates maximum liability. You will be personally liable for all debts by your business. This is a popular choice for a one-person operation.
2. PARTNERSHIPS: If you need a business partner, either for financial or expertise reasons, the best way to outline your business relationship from a legal standpoint, is to form your business as a partnership.
Maybe you have one or two partners wanting to join with you in your decision to sell computer hardware. You may be the outgoing salesman, and your other two partners love to just be working in the back room configuring client's systems. Maybe you have someone with more accounting abilities. Let them take care of ordering or helping wherever needed. These roles should be worked out between all involved before you get started.
3. CORPORATION: A corporation is the most formal form of business that one may consider. You can have a corporation even if you're the only one in your business or even have partners involved This is the more expensive way to go, but offers the least liability.
The best way to become a corporation is to start off using one of the above forms of business and then later on after the business is prospering file to become a corporation.
Business Checking Account
You will also need to open a BUSINESS checking account. Make sure you bring in the original copy of your resellers permit, they will need that before you even try to open an account. There might be other things, like a copy of the DBA statement receipt. Call ahead and ask.
Pick a bank dedicated to serving the business community. This way if you plan on doing business outside the U.S., they will be more inclined to accept checks from foreign companies.
Information Before You Begin Reselling or Distributing!
When contacting a manufacturer and distributor of hardware, these companies will mail or fax you forms to fill out on your business. They will need the name of your bank, a copy of your resellers permit in order for you to buy wholesale.
Ordering from a computer wholesale company requires you to have a "resellers permit". When you buy from a distributor or wholesaler with a resellers permit they do not charge you sales tax because it is a business to business transaction, YOU or your corporation are expected to collect and pay sales tax to your state government institution. Some states don't charge sales tax, and every state has it's own rules which you will have to learn once you talk to the states Taxation and Finance department (or otherwise known)
