A wholesale distributor is an intermediary in the process of selling goods, between the producer and the consumer. It can works in a store or in a warehouse, depending on the products it is focused on. Besides, in the age of the Internet, many entrepreneurs build virtual stores.
How to become a wholesale distributor
To open a wholesale business, education in marketing and business will be useful. You will need to choose the type of products you want to work with such as wholesale bar supplies food and drink, find out about wholesale practices and rates from manufacturers, compare them, consider overhead and shipping costs, and determine which products have the most great profit potential.
Make a detailed plan for your business, get the start-up capital you need, consult an attorney and make your business a legal entity.
Once you do this, you can apply for a federal Employer Identification Number, which allows you to hire employees. Next, you need to get a Sales Tax Permit. In some states, you might not need any additional license, but in other states, you may be required a specific permit, depending on the goods you are dealing with. You may need to establish one or more tax IDs.