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How to get reseller license in canada

Discussion in 'General Business' started by toyotaMAN, Nov 30, 2006.

  1. #1
    I would like to put up an e-commerce site...but the one that i like to be partner with or my wholesaler is residing in US(america)...and they are asking for "Reseller License" ..

    The problem is I live in canada...Does anybody here knows where could I get it?? Or Government Agency that you know that can help me..or just a website to look at?
    SEMrush
    Please i need your help....:(


    Thanks in advance .. :)
     
    toyotaMAN, Nov 30, 2006 IP
    SEMrush
  2. gworld

    gworld Prominent Member

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    #2
    What is it that you want to sell?

    I don't think that there is anything that is called Reseller license and probably they are asking you for your business license.
     
    gworld, Dec 1, 2006 IP
  3. crazyfish

    crazyfish Active Member

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    #3
    You should speak to a lawyer about these details, they should know if you need a license, what kind of taxes/duties you may need to pay.
     
    crazyfish, Dec 1, 2006 IP
  4. toyotaMAN

    toyotaMAN Peon

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    #4
    Okay I will ask them about it..Because I cannot find best information about it on the net...
     
    toyotaMAN, Dec 1, 2006 IP
  5. toyotaMAN

    toyotaMAN Peon

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    #5
    look at what they said

    So, Do you think it is business license??
     
    toyotaMAN, Dec 1, 2006 IP
  6. gworld

    gworld Prominent Member

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    #6
    Yes. They are referring to business license. The type you need depends on what is the product that you are selling. Most of the time, they just want to make sure that you are a reseller and not end user. In some cases like used auto parts, you will need license from your province on top of being registered as business.
     
    gworld, Dec 1, 2006 IP
  7. nicuz

    nicuz Peon

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    #7
    I am also from Canada and I got my reseller licence through my accountant. He charged me around $50.
     
    nicuz, Dec 1, 2006 IP
  8. resellers-solutions

    resellers-solutions Peon

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    #8
    This is a simple solution. There are two ways to get a "resellers certificate" if you are a Canadian. The wholesaler only wants to ensure you are in fact a business, and not an individual.

    So, if you have registered with the Government of Canada; you will have a business number aligned to you. This is all that would be required from your supplier. Your GST Number would also suffice.

    If you have not registered with the Government, you can do so online through their website; either as an individual (sole proprietor) or as a corporation.

    Oh...and it is free to register.

    The other way is to pay someone else to register your company with the Government; and at $50.00 per, I would gladly volunteer! LOL

    Hope this helps you.

    Rob
    Resellers Solutions
     
    resellers-solutions, Dec 2, 2006 IP
    LinkPromo likes this.
  9. toyotaMAN

    toyotaMAN Peon

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    #9
    thanks for all your replies...:) I really appreciated it...
     
    toyotaMAN, Dec 4, 2006 IP
  10. LinkPromo

    LinkPromo Peon

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    #10
    LinkPromo, Dec 4, 2006 IP
  11. canquest

    canquest Peon

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    #11
    I live in Canada. However the dropshipper I want to use in the United States and they only serve the US market.

    So..how do I get a reseller certificate if I am not selling in Canada, but don't live in the States?

    I do have a business and GST number but it for canada.

    Chris
     
    canquest, Jan 12, 2010 IP
  12. Courtney Marie

    Courtney Marie Peon

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    #12
    canquest, what did you do in the end? I am in the same situation.
     
    Courtney Marie, Dec 5, 2015 IP
  13. mmerlinn

    mmerlinn Notable Member

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    #13
    In the U.S. every state has different laws. Most states charge sales tax to the retail consumer, so in those states the government requires businesses selling to wholesalers to obtain reseller licenses, sales tax exemption forms, or some other method so the wholesalers can be exempted from collecting sales tax from the wholesale buyer.

    A few states have NO sales tax, so permits, exemptions, etc DO NOT EXIST. I happen to operate in a state that has NO sales tax, so I NEVER need to concern myself with whether the buyer is a retail consumer or a wholesaler. Most states with sales tax have laws exempting buyers from states with no sales tax from having to submit a reseller form, sales tax exemption, or whatever they call it. When I deal with businesses in those states I simply inform them that I am in a state with no sales tax and therefore do not have any way to comply with their request. In such cases, I also point them to their state law to that effect. When they send me a reseller's permit to fill out, I simply fill in the box for the state permit number with something like "None - No sales tax permit required by my state."

    A business license is not required by the Federal Government. And I don't know of any state that requires a state business license. HOWEVER, MOST, but NOT all, cities and counties DO require a business license. In my case, both my city and county require a business license (2 licenses). Most counties in this state require no business license at all, and neither do most cities, so, many businesses in this state operate legally without a business license of any kind.

    In your case you are dealing with a drop shipper. IF HE NEVER SHIPS HIS PRODUCTS TO ADDRESSES IN HIS STATE, he never has to collect sales tax as ALL interstate and international shipments are SALES TAX EXEMPT by Federal law. However, ALL shipments he makes WITHIN his state REQUIRE payment of sales tax OR a sales tax exemption of some sort. He is simply requiring you to submit proof that you are sales tax exempt so he can ship WITHIN his state and NOT have to collect the state sales tax. We do NOT have a Federal Sales Tax (GST) like Canada does, so the Federal Government is not involved at all.

    So, there are 3 scenarios here.

    1) All drop-shipments go to Canada. All he needs is something to show that he does not need to collect sales tax. His state probably has a form for that purpose.

    2) All drop-shipments go ANYWHERE else EXCEPT to his state. Same situation.

    3) Some drop-shipments go to HIS state. Someone MUST collect sales tax on those shipments and that someone must submit the collected sales tax to his state tax agency. This gets tricky since you are in Canada. Normally the SELLER, not the drop-shipper, collects the sales tax, but since you are in Canada I don't know if it is even legal for you to collect that tax UNLESS you have a business PRESENCE (office, etc) in the U.S. If you can't collect the sales tax, then the drop-shipper must collect that tax. Due to the complexity of the laws, most drop-shippers will not collect the tax for you.

    So, from my perspective you basically have two choices, MAKE DAMNED SURE YOU NEVER SHIP TO HIS STATE, or set up a U.S. office or storefront somewhere so you can collect those taxes and remit them to his state.

    I would contact the drop-shipper to find out what his policies are and how you can go about doing business with him. He may not be able to accomodate you, but it never hurts to try. Explain to him your situation, for example, that you do not have and cannot get a reseller's permit BECAUSE you are in Canada and Canada has no such thing.

    As far as Canada is concerned, if your shipments go to Canada, you will need to somehow collect the GST and remit it to your government. You will need to contact your local Canadian authorities as to what you need to do to make that happen.

    P.S. And, yes, I know that this is an old resurrected thread. Apparently, my information is still needed.
     
    mmerlinn, Dec 5, 2015 IP