What does it take to become a reseller?

The answer is surprisingly simple. All you need is a resale permit (also known as a reseller's license.) How much does it cost to get a resale permit? Nothing! "But what's the catch?" Well, in order to get a resale permit, you need to have a business. Well, technically you need a business license, but in practice, all you really need is to file for a "fictitious name". What that means is that you need to register a company name with your county clerk's office. You can call it anything you want, just as long as there is no one else using that name. So you can call it the Threshing Company if you want. Getting the fictitious name is relatively painless, but it does cost around $5-$50 depending on where you live.

Here are the exact steps you'll need to take to get a resale permit:

1. Head over to your area's County Clerk-Recorder's office and file for a fictitious name. The cost varies, but it costs $30 here in Alameda county. The form should be labeled something like "Fictitious Business Name Statement". The form will ask who this business is conducted by. Choose "individual" for this. You can also opt to choose partnership, corporation, etc. if you want to make it a real business.

2. Most counties will also require that you publish the name of your new business in a newspaper. Any newspaper will do. Local papers or university publications are usually cheapest and fastest. You will need to send proof of publication back to the county clerk's office.

3. Take the receipt of your fictitious name statement to your area's State Board of Equalization Office and file for a resale permit. You shouldn't have to wait till Step 2 is done before doing this. If you are lazy, you can probably download your state's application form from the web. (Check yahoo.com and search for state board of equalization) This step is free, but in rare occasions if you have a bad credit rating they might require you put down a deposit on sales tax. The California Board of Equalization web site is at http://www.boe.ca.gov.

4. Technically, you are supposed to also file for a business license too. But if you are just buying parts for yourself and friends, you might be able to get away without one. If you plan on reselling the parts and making a real business out of it, you should get a business license.