If you're starting or growing a custom apparel business, you've probably heard someone say:

“Do you have a reseller license?”

But what is it—and why should you care?

Why would you want one?

Simple: it can help you buy products at wholesale pricing and avoid paying tax on qualifying products you're purchasing specifically for resale.

Think about it.

If you're buying shirts one at a time at retail prices, decorating them, and trying to resell them, you're already making your job harder.

As your business grows, you'll want access to wholesale suppliers where you can purchase things like:

Blank shirts • Hoodies • Hats • Bags • Apparel

Suppliers such as SanMar may require business and resale documentation before giving you access to certain wholesale purchasing options.

Lower product cost = more room for profit.

And that's what we're trying to do here. 

What does a reseller license actually do?

Let's say you buy a blank shirt for your business.

You put a Pineapple DTF transfer on it and sell the finished shirt to your customer.

You're buying that shirt to resell it, rather than buying it for yourself.

In Arizona, qualifying purchases for resale can be made using the proper resale documentation. The state uses a Transaction Privilege Tax (TPT) license, and Arizona Form 5000A is the resale certificate provided to qualifying vendors.

How do I get one in Arizona?

It's pretty straightforward:

1. Get your EIN
If your business needs one, you can get an EIN directly from the IRS.

2. Apply for an Arizona TPT License
Apply through AZTaxes.gov. Arizona says the state TPT license fee is currently $12 per location, although additional city fees can apply.

3. Get your TPT number

This is the number suppliers may ask you for when setting up your wholesale account.

4. Complete Arizona Form 5000A

This is Arizona's Resale Certificate. You provide it to qualifying suppliers when purchasing products for resale. You don't send the certificate to ADOR—the vendor retains it.

5. Start setting up wholesale accounts

Now you can start looking at suppliers and purchasing qualifying inventory for resale.

Why I thinks this matters

You don't need to be a huge company to start thinking like a business.

If you're buying a blank shirt for $6 when you could eventually be buying comparable inventory wholesale for $3–$4, that difference adds up fast.

Sell 10 shirts? Maybe it doesn't feel huge.

Sell 1,000 shirts?

Now we're talking real money.

Getting properly set up can give you access to better suppliers, better pricing, larger quantities, and ultimately better margins as your business grows.

That's the point.

Don't just figure out how to make shirts. Learn how to build a business around them. 

Who do you buy your supplies, apparel from? 

Pineapple Note: We're sharing this to help point you in the right direction—not as tax or legal advice. Requirements vary by state and business. Always verify your requirements with your state's tax authority or a qualified professional.