How to Get a Wholesale Distributor License

Getting a wholesale distribution license is not a difficult task but you should be extremely careful before choosing the business category. People often fall for joining businesses that are about to touch the heights of success but fail because of their short sightedness. Nevertheless, it should be kept in mind that you must obtain a license for a business activity that you are interested in otherwise you will not be able to run it properly. It is the foremost step in the formulation of a business plan and you must think rationally before making a choice.


  • 1

    Decide the business

    The most important thing in becoming a wholesale distributor is to decide what type of business you want to enter. For this, you must compare your skills, abilities and temperament with those required by a particular business. You should neither be too optimistic nor pessimist about what you can do or not but think rationally and ask yourself the question whether you can do this or not. Remember, you must give due importance to the businesses that are about to boom as this will play a key role in achieving some success.

  • 2

    Choose the name for business

    Becoming a wholesaler for a business entity does not mean that you cannot have a name of your own but instead it is the most important thing. It is of immense importance that you must obtain the ‘doing business as (DBA)’ for your business as it is a must in all types of businesses. It is up to you whether you want to choose the real name or a fictitious name for your business. For this, you must register to the state’s Division of Corporations.

  • 3

    Obtain Employer Identification Number

    After you have obtained DBA, you must now get your Employer Identification Number. For this, you would have to register to the IRS. The EIM holds similar value to a Social Security Number. If you are a sole proprietor who is conducting business under his/her real name then you will not be required to obtain EIN otherwise it is a must in every case.

  • 4

    Get your sales tax ID

    You should not forget to obtain your sales tax ID from the State’s Department of Revenue. You will not be allowed to commence business activities without the sales tax ID, so you must obtain it as fast as you can.

  • 5

    Get Wholesale Distributor License

    Once you have completed all the steps, it is now time for you to get a wholesale distributor license. This will allow you to handle large product loads and effectively reach out in to various markets. Depending on the type of business you will need a lawyer to help you obtain a wholesale distributor license for transporting, storing and selling goods in bulk.

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