When starting your own business, it is very important to do it right, by getting all of the drop ship legalities together FIRST! By drop ship legalities we are referring to your tax id number/resale license (or sellers permit depending on the state). If you skip this very important step and try to begin selling first, you will find many pot holes in the road along the way. Starting with this way first not only makes it legitimate, but it also makes it more "real" for you, and opens up a lot more doors.

*** NOTE: A true drop shipper will not work with any company that does not have a t.i.d. number.

By drop ship legalities, we are referring to really only 1 main legal process you need to go through while setting up your business. And that again is getting a tax id number. In order to get this you must decide if you are going to be a sole proprietorship, incorporation, a limited liability corporation, etc. Once you know this, and you have your address (yes it must be a physical address not a P.O. Box) you can fill out your states online form, and get the number (usually) within minutes! It really is quite simple.

Although getting a tax id is really the only step you need to take, consider turning your business into a corporation. This makes you not only appear more legitimate, but also protects you and your assets in the event something were to happen. When you have LLC (for example) behind your name, you are giving potential customers the satisfaction of knowing they are buying from a business, and not some guy working out of his basement (although you just may be!). Sometimes, appearances ARE all that matter.

The importance of this step cannot be overlooked, as ALL of the "true" drop shippers require this because they have to report to their state with their tax information. When a drop ship company is dealing with a reseller (that's you), they do not charge tax on the products, they leave that up to you to do, and for you to pay Uncle Sam. Companies that do not require your legal information are probably not legitimate wholesale drop shippers.

Michael Garvin is the creator of http://www.DropShip-Resource.com, as well as several other affiliate marketing and retail sites. Having spent well over 3 years researching and experimenting with both fields, Michael has made a healthy supplemental income. DropShip-Resource.com provides invaluable information for anyone interested in having their own, legitimate online business selling drop shipped products and/or wholesale products. Please visit his site to learn more.

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