Business license for materials

It's been mentioned in several topics I've reviewed that having a business license can reduce the cost of materials quite a bit. What type of license is needed? I live in VA if that has any bearing. Any information is appreciated.

 

Each vendor has a different policy. In general, they ask for references that you run a legitimate business. Also, you need to provide a retail or wholesale license. Usually the discount depends on the amount you buy. The first year you get the minimum and will increase depending on your purchase volume.

 

I'm ignorant when it comes to this sort of thing .. would an LLC qualify? thanks for the info.

 

An LLC would go a long way towards proving you are legitimate to a wholesaler. Along with an EIN tax number. Even if you are in a municipal area, unless you have a retail store front, "business liscenses" (and other ways The Man takes his share) are either not required, or... how are they going to know you are "a business"? For a "boat repair/building" shop, its to your tax and fee advantage to locate outside of an incorporated city or town.

The biggest thing will be if you talk and (more importantly) order like a real business. If your "business address" is your house's garage and all you ask for in your first order is a few bits and a 5 gal bucket of epoxy, they are likely to tell you to take a hike. So.... having a retail store to sell all the "extra" merh. you need to buy to get your discount is the usual way to go. Many (many) moons ago, that is how I found myself the co-owner of a hobby store. lol.

 

Makes sense. I've selected the supplier for the core, glass, and resin and briefly spoke to a salesman. I do intend to purchase a small amount of the supplies at first to make sure I can succesfully produce a good laminate. I don't mind taking the hit on the small order as long as they will work with me on the large one. Thanks so much for the information.

 

It can also help if you register your business name with the state. This has several benefits. It prevents others in VA from using you business name and then any one can check with the state to see if you are legitimate business. see Virginia SCC - Office of the Clerk - Business Lookup via Clerk's Information System http://www.scc.virginia.gov/clk/bussrch.aspx

 

What is it you're working on and what's the total amount of product you plan to buy?

While you may get a small discount, the reporting and paperwork to keep up with the local regulatory agencies (everybody wants their cut of the taxes) may be more of a headache than it's worth.

 

Good points, you would want to be talking substantial $, and I am guessing if that is the case, a good discount should be able to be negotiated, anyway.

 

Sometimes wholesalers don't care about if you're a business or not. It seems some will put your order on an established account or some sort of 'slush' account. If they give a 30% discount to commercial accounts, they make some money. If they sell to you at a 30% discount, they make some money. Same thing.

What laminate schedule did you decide to use?

 

Not really. Its bad business. A legitimate business is going to buy an order of magnitude more inventory than to individual cheap skates looking for a deal. Yeah I know they do it, esp. when its easy to sell on, and hard to compete with, online sales, and that is why lots of boat shops and boat supply distributors have gone out of business too.

 

In the end though, it is done. Why is it bad business? A small sale at 30% discount is better than a no sale at full price. All those guys behind the counter don't care, those guys in loading could care less. There are issues with tax etc, but they work it out somehow. Truth and honesty aren't what makes the world spin.

Anyway, before the OP puts in his order for materials, he should go see my inputs into his 'Layup schedule help thread' Layup schedule help https://www.boatdesign.net/threads/layup-schedule-help.59099/

 

They care when they get their pay and hours cut, or when they are laid off because the business went under. Or rather they don't care, which is the whole problem. No one cares until its a problem, then they find someone else to blame. "China", "WalMart", "Wall St." wa wa wa as they go to their minimum wage service industry jobs or the welfare line.

 

I don't understand what you're trying to say. Are you saying the op is a cheap skate because he wants to save some money? Are you saying that paying the same or getting the same discount as a 'legitimate business' turns one into a cheap skate? Where do these pay cuts, this laid off, business goes out of business, welfare stuff all come from?

 

Web search: "Tragedy of the Commons". Everyone pursues their own best self-interests. Finding the "best-deal" (ie: being a cheap=skate), even though in the long run its not health for an economy (at least locally, multi-national corporations and overseas suppliers do great).

Do you ever wonder what happened to all the small "mom and pop" specialty businesses? Are you old enough to remember them? Or are you only familiar with the big box corporate chain stores we have today? How about how Amazon and AliExpress are slowly but surely making the big boxes extinct?

 

Death by a thousand cuts... what Wall St. skims is a rounding error on a healthy economy. But when the little decisions individuals make in their self-interests add up, it can capsize the whole thing and every one loses. Almost happened in '08. Only saved because they stole from your great grandkid's future.