The basic steps for applying for a reseller permit include: Obtain the application from the appropriate state department. Organize the information and documents you need to complete the application. Submit the fee for obtaining your reseller certificate.
Find out if and when you need to renew your reseller permit. How to Simplify the Process Applying for state sales tax IDs and reseller licenses , submitting foreign qualification forms, and tracking renewal dates can demand a lot of time as you wrangle all the details and complete the necessary paperwork.
About the Author: Nellie Akalp. Nellie Akalp is an entrepreneur, small business expert, speaker, and mother of four amazing kids. Akalp is nationally recognized as one of the most prominent experts on small business legal matters, contributing frequently to outlets like Entrepreneur, Forbes, Huffington Post, Mashable, and Fox Small Business. A passionate entrepreneur herself, Akalp is committed to helping others take the reigns and dive into small business ownership.
Through her public speaking, media appearances, and frequent blogging, she has developed a strong following within the small business community and has been honored as a Small Business Influencer Champion three years in a row. Related Posts. Hiring Family Members in a Small Business. How to Reinstate a Revoked c 3 Status.
Filing an Intent to Use Trademark Application. Incorporate Now. Get Started. Ranell, we would recommend getting clarification on your specific needs from a tax professional. Sorry we can't be more helpful! Typically, it does not matter if your business is full or part time. If you are unsure if you need a resale certificate, we recommend checking with an attorney or contacting the Delaware Division of Revenue if you have a Delaware company. Do businesses that intend to rent the items they buy wholesale qualify for the resale certificate?
Emma, for this question we recommend you consult the state's Tax and Revenue department to see what their rules are. Your accountant may also be able to advise you. Disclaimer: Harvard Business Services, Inc. We cannot render legal or financial advice and your use of this site is subject to additional terms and conditions.
English en espanol. Form a Company Now! Blog Menu. Subscribe to Blog. What's the Difference? All Blogs About Corporations. All The Delaware Advantage Blogs. Contributors Profiles. What Is a Resale Certificate? The California Board of Equalization issues temporary seller's permits to out-of-state and part-time sellers. This enables them to sell taxable goods to the public at events such as the Comic Con International, the annual huge comic book convention held in San Diego. The holder of a temporary resale license must report on sales and turn the tax collected over to the state.
What Is a Resale License? By Steven Lafler. State by State Each state with a sales tax issues its own resale licenses through a state sales tax agency. This is generally paid at the time you file your state income tax return. This may be a separate filing if your state does not have an income tax. For example, if you have a North Carolina resale certificate but try to buy an item tax-free in Maryland, your Maryland vendor will be unable to accept your North Carolina-issued resale certificate.
To buy an item tax-free from a vendor in Maryland or any of the other states on the above list, you will be required to register for a sales tax permit in that state. Note that if you hold a sales tax permit from a state, not only can you buy items tax-free from vendors in that state, but you are also required to charge sales tax to your own buyers in that state.
As an online seller, sooner or later you will potentially run into another reseller or purchaser who would like to buy from you. Here are a few pro tips for accepting a resale certificate from a buyer without finding yourself in sales tax hot water. I hope this post has helped explain when and how to use and accept resale certificates in your online business.
Subscribe to our bi-weekly newsletter to get the latest thought leadership content delivered right to your inbox — from blogs and resource articles, to podcast episodes, webinars and more. Jennifer Dunn is Chief of Content at TaxJar, a service that makes sales tax reporting and filing simple for more than 7, online sellers. Try a day free trial of TaxJar today and eliminate sales tax compliance headaches from your life. Your email address will not be published.
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