Brian Vagnoni on 12 Feb 2008 20:09:24 -0800


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Re: [PLUG] The Computer Biz


Yeah I did the fictitious name deal. Brian Vagnoni DBA as V-Systems. Everyone gets my name wrong so something had to be done there. Of course I had to settle with v-system.net as everything else was taken. The hyphen is always a problem telling people on the phone. I've actually gotten correspondence with vhyphensystems go figure.

Of course you have to declare your income via a 1099 too. Most comapnies these days give you one for anything over $600.

Brian Vagnoni



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From: John Von Essen [mailto:john@essenz.com]
To: Philadelphia Linux User's Group Discussion List [mailto:plug@lists.phillylinux.org]
Sent: Tue, 12 Feb 2008 23:01:15 -0500
Subject: Re: [PLUG] The Computer Biz

You forgot an important step. To be a reseller, and work with
TechData/Ingram/etc you need to get a sales and use tax license,
otherwise those vendors wont sell to you. In PA, you file the PA-100
Enterprise Business Form for sales and use tax. You give that license
number to TechData, and your all set. I forget if you can DBA under
your own name with PA-100, if not you file a factitious name request so
as a sole-proprietor you have a real DBA name associated with the sales
and use tax license.


Note: If you want to sell or ship stuff to California, you need to get
a California Use tax license for the CA Board of Equalization. CA is
the only state that does this. Because the big box distributors have
warehouses in CA, if you ship to CA using those warehouses, those
distributors will require a CA use tax license to be on file since you
have nexus with CA when "touching" those warehouses for drop shipment.

Now... actually collecting CA use tax is up to you - i mean they're
3000 miles away... But you have to file the PA sales tax, because if
they catch you.... whoa momma... they will whack you. And they know
about it because Techdata and others will report your tax exemptions to
the state from time to time during their own audits - so they know your
selling stuff.

-john

On Feb 12, 2008, at 10:31 PM, Brian Vagnoni wrote:

> Personally I had wished someone told me about this a long time ago
> when I first started out in the computer biz. I had to find out the
> hard way. Searching the web, and getting burned ...etc
>
> This is for the people who aren't aware of this.
>
> Listen if you have ever resold your services as a computer
> professional you are a reseller and therefore entitled to operate like
> a real business. That means dealing directly with distributors that
> only sell to resellers.
>
> Services I either get or can get include:
>
> Branding or whitebox including laptops (My name on the equipment)
> When I ship from one of like 6 warehouse all over the US from Techdata
> or Ingram Micro to one of my customers the box comes with my company
> name on it not theirs.
> I could get an 800 number with 24/7 support though these people the
> phone being answered with my company name.
> I get current equipment when I go through the website it's all labeled
> new/active, phased out, ...etc so I know exactly what I'm buying.
> I can also call a dedicated sales person and sometimes there is room
> to negotiate.
> I can offer customer leasing options through the distributors.
> I get a net terms no interest account building credit in my business
> name.
> Pay with a company check.
> Manufacturer representative support in most cases; that means a real
> person.
> I get them to customer build systems for me.
> ...more
> Demo or NFR(note for resale) units usually 40% - 100% off (mmm my
> favorite).
> Manufacturer kick backs, Intel gives you free cpus and motherboards as
> well as other equipment based on sales for example.
> You can get a Microsoft Action Pack subscription for like $295/year
> which has most of their relevant products Office - Server - Exchange
> (it's worth it just for that).
>
>
> The only thing I don't like about it is you end up becoming a tax
> collector for the state(sales tax). But you can keep 1% if you send it
> in early or something like that. It's 4x a years so it's not really a
> big deal.
>
> If you are not operating this way it's definitely worth a look. There
> are definite perks involved.
>
> Brian Vagnoni
>
>
>
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>
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