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Question on companies registered in the US...

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fashun_diva
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Joined: 12/31/1969

Hi,

Here in Singapore, all companies must be registered under a central government body and are issued business registration numbers. There is an online database where one can search for a company either via its registration number or its company name.

Question: Is there a similar system in place in the US?

The reason I ask is because I need a method for checking that the retailer orders I get are from legitimate retailers (and not customers pretending to be retailers so as to get retailer discounts).

Any input is appreciated!

Anonymous
Question on companies registered in the US...

All companies who have registered have an EID (Employer Identification Number) issued at time of registering.

As in checking on them you can see if they are a "S' corporation or "C" corporation or an LLC (Limited Liability Corporation) by asking the state they registered in and looking at public records for the EID or their corporate tax numbers. You can also look on the secretary of state for which state they incorporated to see their business registration which gives contact info, address, place and origin of business, nature of business and share count and distribution of outstanding shares. This is all public information open for anyone.

Just my opinion and not an expert

OrlandoPat
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Joined: 10/16/2008
It's easier than that...

Every retailer in the US has a resale number. It is common practice for manufacturers to ask for the resale number because it stops them from having to pay sales tax. Why? If I sell you a game for you to sell to someone else, I don't have to collect the sales tax. You do.

So, just add it to your order process. Require the customer to furnish you with a resale # in order to get retailer pricing.

- Patrick Matthews
Live Oak Games
www.liveoakgames.com

FastLearner
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Joined: 12/31/1969
Question on companies registered in the US...

A sole proprietorship does not necessarily require a registered EID -- the owner's social security number is used instead. Since a LOT of retailers will be sole proprietorships, the EID might not be useful.

The resale number, though, should work great.

-- Matthew

jwalduck
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Joined: 09/06/2011
Question on companies registered in the US...

Is there a way to verify a resale number?

Verseboy
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Joined: 12/31/1969
Re: It's easier than that...

OrlandoPat wrote:
Every retailer in the US has a resale number. It is common practice for manufacturers to ask for the resale number because it stops them from having to pay sales tax. Why? If I sell you a game for you to sell to someone else, I don't have to collect the sales tax. You do.

It's not hard to get a resale license, though. I publish quilt books in my real life. I run into this from time to time. Someone might have a business where they do machine quilting for people. They don't sell fabric or books, but they might call me to place an order for 1 copy of each of our books at wholesale.

How might I deal with it? I could raise my minimums to weed out most of the fakers. For a variety of reasons I don't want to do that. Sometimes, when my antennae are raised, I'll make them fill out a form to establish an account. I'll ask for 3 other companies they buy from. That way I can test them by seeing how many hoops they're willing to jump through to get my books. When I'm really cranky, I check the references. Most of the time my time is too valuable to do that on a small order.

In the absence of proof of illegitimacy, I just fill the order and move on to the next thing. It bothers me when people ask for things they don't deserve, but in the grand scheme of things it's a minor problem.

A resale number by itself isn't a foolproof statement that this a legitimate retailer. Asking for the number, though, is a good place to start. Once you have the number, you can decide if you want to delve further or just fill the order. I usually just fill the order in my business.

And if you want the best quilt books (at retail!)...

Steve
http://www.judymartin.com

FastLearner
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Joined: 12/31/1969
Question on companies registered in the US...

Excellent point, Steve. It just means they were willing to jump through a few hoops to get it, and (at least in this state), file quarterly even if they sold nothing. It's no guarantee.

Distributors do actually do something for their money. :)

-- Matthew

fashun_diva
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Joined: 12/31/1969
Question on companies registered in the US...

The input you've all provided has been invaluable... Thanks!

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