Depending on the state you do business in, a resale certificate is needed to purchase goods and avoid double taxation by charging the sales tax once to your end customer. If you have a resale certificate, you will not need to pay sales tax when you purchase from a wholesale company such as a distributor.
That’s a good question! A resale certificate can also be referred to as a sales tax permit, resale license, reseller certificate, resale permit, sellers permit, tax certificate and possibly more variations. The concept of what this document provides is what should be important. The reason why you will want to obtain this document is to purchase goods at wholesale without paying a tax.
No, it is not. The purpose of a business license is not the purpose of what a resale license is. Remember, a resale certificate or license is to prove you can purchase wholesale goods and not pay sales tax. Sales tax will however need to be charged to your end customer.
No, it is not. An EIN is your federal identification number. The resale certificate is an entirely different document. Remember, a resale certificate is obtained so you don't pay tax with your wholesale supplier.
No, it is not. Your articles of incorporation are specific to the entity you have formed (corporation). The resale certificate is an entirely different document. Remember, a resale certificate is obtained so you don't pay tax with your wholesale supplier.
This depends on the wholesale company you are purchasing from. Most likely, the answer will be yes. Companies cannot (and should not) sell goods without charging a sales tax unless it is specific to resale. As a sole proprietor, you may still be asked for a resale license from your vendors.
Yes, the information we have carefully compiled is free to use and should be a very helpful guide for many for years to come.
Please visit our homepage at ResaleCertificates.com and click on the state you do business in. You will be shown what the steps are for obtaining a resale certificate in your state.