How to Get a Wholesale License: Costs and State Rules

How to Get a License to Sell Wholesale

“Wholesale” is one of those things you’ve probably heard about, but never fully understood. Wholesale businesses buy inventory in bulk to sell to other businesses, everyday consumers, or both. Companies that buy wholesale don’t have to pay any sales tax upfront, as the tax eventually falls on whoever makes the final purchase. It’s an interesting business structure that falls in between the lines of traditional commerce. To do any of it legally, though, you need to be properly registered with your state.

Most people call this registration a wholesale license, even though there are technically a couple different pieces of documentation that term could refer to. These licenses open the door to lower wholesale pricing, professional supplier relationships, and compliant reselling. As you read this article, you’ll learn what a wholesale license actually is, how to get one, what state-by-state requirements look like, and how to put it to use correctly. You’ll also learn about Slash, a business banking platform especially built for wholesalers.¹ With a high cash back corporate card and stablecoin on/off ramps, Slash gives wholesalers tools to pay suppliers globally, streamline invoicing, and earn capital on eligible purchases.⁴

What is a Wholesale License, and How Does it Work?

A wholesale license lets your business buy goods in bulk directly from manufacturers and distributors without paying sales tax at the time of purchase. Because you’re more of a middleman than an end consumer, you can be exempt from the sales tax that would normally apply. That tax gets applied later to the person or business that buys from you.

It’s important to note that “wholesale license" is a catch-all term. Overall, states rarely issue a document with that exact title. What you'll actually apply for is some version of a reseller’s permit with a name that varies by state. It can be called a reseller’s permit, a sales tax license, sales & use tax certificate, transaction privilege tax license, or certificate of authority, among others. No matter what they call it, each state offers some sort of license that allows businesses to buy product in bulk tax-free.

Once you're registered, you can then start acquiring resale certificates, which suppliers will almost always ask for before they let you begin buying their inventory. After this is all complete, you’ll be ready to start buying wholesale.

Understandably, the terminology around these permits can be pretty confusing to new wholesalers. Here are the main ones you’ll need to know:

Reseller's permit: The document you give suppliers to confirm you're purchasing goods tax-free for resale. It exempts you from sales tax at the point of purchase.
Seller's permit: Authorizes your business to collect and remit sales tax from customers on taxable goods. This is required if you sell to end consumers rather than exclusively businesses.
Resale certificate: The certificate you hand to a supplier to clarify that a purchase is intended for resale. This is the document that triggers the tax exemption at the point of sale. Unlike permits and licenses, you’ll fill out a new resale certificate form each time you onboard a new supplier.
Wholesale license: The general term some people use to refer to the permits they need to buy and sell in bulk.

Many wholesalers need two or three of these. If you sell exclusively to other businesses for resale, you’ll primarily need the reseller's permit. If your customers include consumers, you'll also need a seller's permit to legally collect sales tax from them. In all cases, you’ll need a resale certificate to avoid paying sales tax.

Steps to Obtain a Wholesale License

Regardless of what your state calls their wholesale license, the application process will largely be the same, albeit with some differences in cost and renewal requirements. Here are the five steps you’ll need to follow in order to obtain a wholesale license:

Step 1: Business Registration

First thing’s first: your business must be a formally registered legal entity before you can apply for any state-issued license. You may choose to form as a sole proprietorship, partnership, LLC, or corporation. Sole proprietorships work for businesses run by individuals, LLCs and S corps are good for those interested in separating their personal and business liability, and C corps are best for those who have their sights set on expansion and investor participation.

Whatever you register your business as, it’s important to make sure the registration’s active before you start your wholesale license application and that you don’t make any mistakes when inputting your business’s information. Any inconsistencies on the application can result in a quick rejection.

Step 2: EIN Application

An Employer Identification Number (EIN) is a unique 9-digit tax ID assigned by the IRS to identify a business. You’ll need it to apply for a state sales tax license and complete supplier onboarding. If you don’t have one, all you have to do is apply on the IRS website for free. You'll be asked for your legal business name, business address, and the Social Security number of the owner. Most states require an EIN for sales tax registration, so you’ll want to get one before you start your wholesale license application.

Step 3: Gather Documentation

Before you start your application, you’ll need quite a few different pieces of documentation. Expect to be asked for your:

Business registration certificate or articles of incorporation
EIN confirmation letter from the IRS
Business name and physical address
Owner identification and contact information
NAICS (North American Industry Classification System) code for your business type
Estimated monthly or annual sales volume

A couple additional items may be requested, depending on the state you’re in and the items you’re looking to sell. For example, California requires a lease agreement for auto wholesale dealer licenses, and New York asks for proof of a business location for alcohol and wholesale manufacturing licenses. It’s best to check your state's Department of Revenue website for a more specific list before applying.

Step 4: Submit Application and Pay Necessary Fees

Most states let you apply online through their DoR or taxation portal. If you live in New Mexico, West Virginia, or Hawaii, you’ll have to fill out a paper application and send it in by mail the old-fashioned way.

Some states charge application fees in the range of $10-$50, but not all do. That said, some specific wholesale fees can get surprisingly high for certain industries. For example, to apply for an Alcoholic Beverages Wholesaler License in Massachusetts, you’ll have to pay $10,000 up front.

Step 5: Wait for Approval and Receive License

Processing times range from same-day approval in Georgia to several weeks in states with higher application volumes. Once you’re approved, you'll receive confirmation of your sales tax license or wholesale registration by email or mail. Along with the license, you'll be issued a state tax ID number you can use to complete resale certificates for your suppliers. Any time you apply for a wholesale account with a new supplier, they’ll likely ask for your license number, a completed resale certificate, your EIN, and your registered business name and address.

Understanding State Requirements

While we’ve talked a little bit about different state fees and documentation, there are a lot more distinctions between states that wholesalers need to be aware of. For example, some states keep permits active indefinitely as long as you file sales tax returns on schedule and your business information stays the same. Others (including Rhode Island and Arizona) need to be renewed annually, while a couple states (Colorado and Connecticut) only need to be renewed every two years. Either way, renewals often come with small fees.

If you operate across multiple states, you’ll also need to know which states accept out-of-state resale certificates. Most do, but precisely nine states don’t as of mid-2026. These are:

Alabama
California
Florida
Hawaii
Illinois
Louisiana
Maryland
Massachusetts
Washington

If you extend your wholesale operations to one of these states, you’ll need to be specifically registered for a sales tax permit in that state.

Industry-specific licensing can also get hairy, as wholesale distribution of alcohol, tobacco, firearms, or pharmaceuticals typically requires permits beyond the standard sales tax registration. As we see in places like Massachusetts, these permits can get especially pricey to apply for. Meanwhile, a cannabis wholesaler license in Minnesota comes with a $5,000 application fee, $5,000 initial license fee, and a $10,000 annual renewal fee.

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Best Practices for Using Your Wholesale License

Getting a wholesale license allows you to begin buying and selling wholesale, but your responsibilities don’t end there. Using that license correctly and staying compliant over time is just as important. The way you handle resale certificates and sales tax filings is the difference between running your business cleanly and breaking compliance rules.

As you begin doing business, you’ll start making agreements with manufacturers and suppliers. When entering these relationships, always provide your completed resale certificate before placing the first tax-free order. Suppliers need that documentation on file, since if they sell to you tax-free without it, they can be held liable in an audit. Keeping signed copies of every resale certificate you issue can also be helpful for your own records.

After you get your license, here are some things you’ll want to avoid doing:

Using tax-free purchases for personal use: Your “tax-free” powers only apply to goods purchased for the sake of resale. If you buy inventory tax-free and use any of it personally, you’ll owe use tax on those items. This can result in fines, break vendor contracts, and even be legally considered tax evasion in certain jurisdictions.
Assuming your license works in other states: While most states accept out-of-state certificates and licenses, some of the highest-GDP states in the country don’t. If you plan to start purchasing from suppliers or selling to customers in a new state, check whether you need to register there ahead of time.
Transferring your license to another entity: Some wholesalers may operate across several entities, but a wholesale license is specifically registered to a single one. You can’t transfer it to a different subsidiary, regardless of how closely tied it is with your own.
Letting renewal dates slip: If your state requires renewal, you won’t be able to legally purchase goods tax-free if your license expires. Accidental expirations can waste your time and frustrate the manufacturers you’ve been doing business with.

How Slash Can Help Wholesalers Manage Their Finances

In 2025, the United States saw an all-time high of $8.4 trillion in wholesale volume. More and more prospective business owners are applying for wholesale licenses and launching their own companies. While licenses and certificates allow you to begin buying and selling, actually managing all that money is a lot easier said than done. That’s why we created Slash.

Slash is a business banking platform built for the complexity and volume of the world of wholesale. With Slash, you can manage your cash flow, payments, cards, and invoices on a single real-time dashboard. This gives wholesalers the ability to keep money moving smoothly across inventory purchases and customer orders.

When forming relationships with multiple manufacturers and distributors, you’ll likely be asked to make payments over a bunch of different rails. Whether they want you to use ACH, wire, RTP/FedNow, virtual corporate cards, or even stablecoins, Slash will have you covered. Every payment you make can be tracked within the Slash dashboard and automatically synced to your accounting solution.

Wholesalers can also take advantage of the following Slash features:

Slash Visa® Platinum Card: The Slash Card is a corporate charge card that allows you to set customizable spending controls and issue unlimited virtual cards for handling team expenses, vendor payments, subscriptions, and more. Users can also earn up to 2% cash back on business purchases.
High-yield treasury: Earn up to 3.80% annualized yield on idle funds with money market investments from BlackRock and Morgan Stanley, managed directly within your Slash account.⁶
Working capital financing: Access short-term financing with flexible 30-, 60-, or 90-day repayment terms to help bridge cash flow gaps.⁵
The Action Center: A one-stop spot for employees to see pending tasks assigned to them. These may include card requests, expense submissions, reimbursement reviews, and more.
Separate virtual accounts: Create multiple business bank accounts to silo cash flows by project, department, or client with real-time analytics across each of them.

Whether you’re purchasing inventory, paying vendors, or equipping your employees to spend, Slash gives you the visibility and control you need. Reach out today to learn more.

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Frequently Asked Questions

How do wholesale licenses differ by state?

The main differences are the names and permit structures, but the underlying authorization will mainly be the same. You might be applying for a seller's permit, a sales tax license, a resale certificate, a certificate of authority, or a transaction privilege tax license, depending on where you operate. No matter what they call it, once you’re approved, you can purchase goods tax-free for resale.

How long does it take to get a wholesale license?

It depends on the state. Some states process applications immediately, while others take longer. New York takes 3-5 business days, and Texas can take as long as three weeks.

What’s the difference between a seller’s permit and a reseller’s permit?

A seller’s permit lets your business collect sales tax from customers that buy from you. A reseller’s permit (also known as a resale certificate) lets your business buy goods tax-free for the sake of reselling.