Software resellers purchase software at wholesale prices and resell it at retail for a profit. Unfortunately, becoming a software reseller isn't as simple as just buying and selling. You must obtain a reseller's license or certificate from your state and decide which company you want to do business with.
Items you will need
- Employment Identification Number
- Resale certificate or license
File for an an Employer Identification Number (EIN) from the Internal Revenue Service (IRS) if you do not wish to use your Social Security number for your business.
Visit your state government's website to find out whether you need to apply for a reseller license or certificate. Complete and submit the appropriate form if necessary. For example, New Jersey residents must obtain a reseller's certificate by submitting "Sales Tax Form ST-3 Resale Certificate." You will need to include software as the type of merchandise you are buying and describe how you plan to resell the software, such as in a store or from a website.
Research software companies that sell at wholesale to resellers. Look for companies that sell the type of software you want to resell, and compare them to find the company that will offer you the best discount. Some companies that offer this service include PC Tools, WM Software and Soft Reseller.
Submit your reseller's certificate or license to the company you chose to buy the software from so that you don't have to pay sales tax. Purchase the software you need to get started.
Sell the software from your store, or on your website. Collect sales tax from the individuals who purchase the software, since they are considered the end users. You are not required to collect sales tax from buyers outside of your state.
Submit the collected sales tax quarterly to your state's department of revenue. You will need to register for a sales tax ID number with your state if you do not already have one. Usually the sales tax ID number is your Social Security number, unless you choose to use the Employment Identification Number.
Make good customer service a criterion in choosing which software company to do business with.
If you are new to the small business world, contact the Small Business Administration for fast answers.
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