Buying Wholesale for Oneself

I just recently got a resale license in order to sell some products locally. Now, I know having a resale license is for RESELLING, but am wondering if I can legitimately purchase through my company and ALSO sell to myself, as long as I pay the taxes. This is probably a rank newbie question, but I am new to the retail business so I have a lot of those.

Stan

> I just recently got a resale license in
> order to sell some products locally. Now, I
> know having a resale license is for
> RESELLING, but am wondering if I can
> legitimately purchase through my company and
> ALSO sell to myself, as long as I pay the
> taxes. This is probably a rank newbie
> question, but I am new to the retail
> business so I have a lot of those.

> Stan

Hi Stan,

I have a resale license.

A resale license just shifts the sales taxes one generation. It protects *you* in that you do not pay or collect tax twice. It protects the government, too, because all they really care about is that *the end user pays* the sales tax.

In other words, it stops duplicate taxation on the same goods. In your case, you do not pay sales tax to the wholesaler or distributor, but you do pay tax when you act as the consumer ...

Hope this helps-

Chip Tarver
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