Have Legal Questions? Ask a Lawyer Now.
Thanks for your question.
Since you will be selling online, rather than from a storefront, you will not need a vendors license. You will, however, need to get a resellers permit (or resale license) to avoid paying sales tax on items you are going to resell. to obtain a resellers license, you will first have to enroll with your state tax department, which will entail getting a sales tax ID number. Most wholesalers will ask for your sales tax ID number or resellers license before they sell you their goods, as they are legally obligated to make sure you will be collecting sales taxes from your customers in the end.
Also, as a final note, please make sure you are purchasing these designer items from a legitimate supplier, and be sure to obtain the proper documentation from them, such as certificates of authenticity, in the event that you'd ever have to prove to your customers that your products are authentic, and that you are not selling imitations.
Hope this helps.
My question was not about how to setup a business. I already have a tax id, insurance and LLC in place. My question was for a specific brand such as GAP, Banana Republic and XXXXX XXXXX etc. clothing that are not found in the general department stores but are sold exclusively in their own stores bearing their names. I do not want to be sued for not having a legal agreement from these stores even though the clothings were purchased from a liquidation company that has mixed lot.
Can I legally resell these brands online without having a vendor license(authorized re-seller agreement) with these companies?
Thanks for the clarification. I apologize for the delay in getting back to you. I'm on Eastern Time, and I had already gone to bed when your message came in.
When you said "vendor's license," I thought you were referring to the license you would need to legally sell items at a fixed location. Your local government officials, e.g., county auditor's office, would issue a vendor's license, not the merchants themselves.
At any rate, you do not need to have permission from Ralph Lauren, or GAP, or Banana Republic, or any other name brand manufacturer to purchase their products wholesale and then resell them. So long as you are purchasing the items from an authorized wholesaler (who must have permission from the manufacturer to sell the products) what you are doing is perfectly legitimate, and you need no permissions.
Again, the reason for using an authorized wholesaler is to ensure that the products are legitimate and not knock-offs, since it is necessary for the wholesaler to have first obtained the manufacturer's authorization to sell/resell its products.
Hope this helps.
Thanks, and same to you! And, good luck with your business venture!
Educator, Esq: Follow up question: Is the following
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).