How to Obtain a Wholesale License in Delaware

You must acquire a wholesale license if you want to launch a wholesale operation in Delaware. Although not challenging, the process does involve some paperwork and costs.

Your company must first be registered with the Delaware Division of Revenue. This can be done by mail or online. After registering, you can submit an application and a $50 application fee to request a wholesale license. Copies of your business registration, federal tax ID number, and any other necessary papers must also be sent.

Your wholesale license will be mailed to you after your application has been accepted. Your license must be renewed yearly, and the renewal charge is $50.

The Delaware Exemption

The tax regulations of Delaware allow businesses to avoid paying taxes in other states where they conduct business, which is known as the Delaware loophole. This is due to the fact that Delaware doesn’t charge corporate income tax to businesses who don’t conduct business there. This tax-savings opportunity is utilized by many big businesses to the tune of millions of dollars annually. Reasons Not to Create an LLC in Delaware

Even though Delaware is renowned for its pro-business legislation, incorporating an LLC there might not be the ideal choice for every company. LLCs in Delaware are subject to a franchise tax, which is expensive for smaller companies. Additionally, you’ll have to register as a foreign LLC in Delaware and pay additional fees if your LLC is situated in another state.

Is an Online Delaware Business License Available? You can submit an online application for a Delaware business license through the state’s Division of Revenue. Some enterprises, however, can also need additional licenses or permits from local or state governments.

If you have an LLC, do you still require a business license?

Yes, if you’re doing business in Delaware, you’ll still need to apply for a business license even if you have an LLC. Regardless of the entity type, this license is necessary for all enterprises operating in the state.

Finally, getting a wholesale license in Delaware is a simple procedure that calls for registering your company with the state, submitting an application, and paying a cost. However, it’s crucial to comprehend the consequences of the Delaware loophole as well as any potential disadvantages of establishing an LLC there. And keep in mind that if you’re doing business in Delaware, you’ll still need to get a business license even if you have an LLC.

FAQ

Then, do i need a sellers permit to sell on shopify?

To buy products directly from manufacturers and distributors at wholesale pricing if you want to sell them in Delaware, you will need a wholesale license. Whether you need a seller’s permit depends on the state in which your company is based. Businesses that only conduct online sales are not required to have a seller’s permit in Delaware, but it is advised that you verify with the state’s Division of Revenue to be sure the rules are correct for your company. Additionally, if you intend to sell your goods in other states, you might need to apply for a seller’s permit there.