Thread: Who is considered a vendor?

Hello everyone, I was just wondering who is considered a vendor and who isn't. At what level of salesman(woman)ship do we have to reach to be considered vendors? Does a person have to have a business to be considered a vendor? I'm thinking of starting a small business of my own and have actually started proceedings so clarification would help me out a lot. Thank you!

I don't think there is anything official. If you show up at a few events and sell stuff, I would just call you a vendor! Anyone who does that often enough would have to "have a business", so I am not sure what you mean by the question entirely.

i think having a resale number is part of the criteria here in the u.s.a.
but some events may permit people to sell without one. i don't know how that works.

of course, on line sales is a totally different animal

If you want to vend at an event, you rent a table and poof, you're a vendor for that event.

Do you mean who is considered a vendor on Bhuz? People who are selling with the intention of making a profit are supposed to pay for advertising instead of using the swap meet.

If you mean who does the government consider a vendor? Anyone who sold something for profit, even if it was just a couple of hip scarves in class, is a business as far as they're concerned. They want you to pay sales tax & income tax on anything you sell, so selling something makes you a business in their eyes.

Personally, I have found that the ability to purchase wholesale is not possible unless you have a business license. In Virginia, I had to fill out some paperwork and pay a one time fee. I also registered my name with the state as a "doing business as". I also have a tax ID which means I pay taxes on all purchases made in Virginia. I also file my federal business taxes but - since I am a sole proprietor - it just ties into my individual federal taxes.

I know - sounds like a lot. I could not have done this alone. I worked with a county small business development center. They answered all my questions, gave me a checklist, and helped me with all the paperwork: Small Business Administration - SBA_TEMP_PROGRAMOFFICE

Now - what defines a "business". I have found that some people actually get a little ticked off that I charge tax. I often joke and say, "sorry ladies, I am a legit and honest business".

On another note, I have also been asked to prove my "business status" (show my business license) for vending at events.

Personally - I think it is worth the extra work to become legit. I started out as a "not legit" business and I just ran into too many roadblocks when it came to purchasing wholesale. Also, I found the many benefits of being legit - tracking mileage, tax write-offs for business purchases, etc. Just made sense for me.

My advice, at least speak with the Small Business Administration in your area. They often hold events as well on "starting a business". This will help you decide where you want to go. Also - all SBA activities are free.

Good Luck!

Ravena

Some of this varies by state, too. I didn't need a business license in IL. I only needed a DBA (fictitious name statement) if the name of my business didn't have my own name in it. (when I was in graphic design, I was Lauren Haas Graphics & Design and I didn't need one). You need a state sales tax ID if you're selling goods rather than services, so you don't need one to teach but you do to sell.

But again, as far as the government is concerned, if you're selling stuff, you're a business. If you don't report your income for taxes or pay sales tax, you're breaking the law. So just the act of selling stuff makes you a 'vendor' in their eyes.

Hmm. Lots of good info...I guess I should have asked 'how much is too much?' If it's not a problem with volume, I'll keep selling goodies! Thank you everyone!

I agree with Ravena, about becoming legit..and then hire yourself a good accountant to take care of things for you.

Legally you should report earnings/profit but I don't know at what level the IRS would consider you a business as opposed to hobby or selling an occasional item on ebay.

My comment would be to sign up with paypal or another merchant service. I was at a farmers market the other day, a young painter was there with her work and I would have bought $200 worth of her work had she taken credit cards but she was cash only. She lost the sale and the people next to me as well who were interested but only had cash.

Personally I struggle with the terms vendor or supplier because I hand dye everything that goes to my store..I hate to say I 'supply' veils because then it's thought I may have a big inventory when in truth most items are made daily or on demand. To me a vendor or supplier is more like someone who can maintain a stock and have a decent size surplus available..