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How to get a Resale License (Sales Tax ID)

How to get a Resale License  (Sales Tax ID)

A reseller's permit (or resale license) is required for US-based sellers in order to avoid paying sales tax on items you are going to resell.To get a reseller's license you first have to enroll with your state tax department, which involves getting a Sales Tax ID number (more on this below). 

What is Sales Tax?

Sales tax is charged on all sales of physical goods to buyers within your state. Some states also charge sales tax for some services.Not all states charge sales tax: if you live in Delaware, Oregon, New Hampshire, Montana, Alaska and Hawaii, then sales tax either does not apply or applies only in certain circumstances.

For all other sellers: sales tax applies to you! Sales tax must be collected by sole proprietors, Schedule C businesses and incorporated businesses alike. In general, you do not need to collect sales tax from buyers who live outside your state.

You can find your state's sales tax rate here. It is important that you do this as there are significant variations between states. For instance, some states have one rate that applies state-wide, while in others, the rate varies between counties and cities.

Note: In some states you also need to collect sales tax on shipping and handling.

How do I get a Sales Tax ID and Reseller License?

You apply for a sales tax ID and reseller certificate/license with your state tax department.

For instance, if you are in New York, then you would go to the New York State Department of Taxation and Finance (either online, by phone or in person) and fill in the appropriate form.

Once you get your sales tax ID, the state will start sending you monthly/quarterly statements.

Business Location

The physical location of your business is what matters to the authorities, not where it is incorporated. So, if you are running your business from New York but have incorporated in Delaware, you will be collecting the New York rate of sales tax from New York buyers.

Buying Wholesale and Reseller Permits

If you are a US citizen purchasing wholesale goods from a wholesaler within the US, then you will probably need a resale certificate or license from the state in which your business is located.

A resale certificate or license enables you to purchase goods wholesale without paying sales tax. It also allows you to collect sales tax from your customers, the end consumer.

Without a resale certificate you will have to pay sales tax on the goods you buy wholesale and then also charge sales tax. In this case you can add the sales tax you paid as a deduction on your return, but it is much less complicated to just present your reseller license when you buy.

Most wholesalers will ask to see a sales tax ID or reseller's license before they will sell you the goods. This is because they are legally obliged to check whether you are able to collect sales tax from the end user.

Use Tax

Another thing you may come across is something called 'use tax'.This tax is in place to discourage people from shopping in states with lower taxes than their own.

Use tax means that if you purchase goods in another state, you owe tax equal to the amount you would normally have paid in your own state. It will also apply to you if you buy goods intended for resale and then end up keeping them for your own use.

Obviously you could potentially get away without paying use tax because it works on an honor basis.However, should you be audited, use tax is something auditors like to hone in on and subsequently many new businesses are caught out. Therefore it is wise to make sure that you pay it and keep the appropriate records.

Collecting Sales Tax on eBay or your Website

It's easy to collect sales tax on eBay. When you are setting up your item description, just select the sales tax option. By selecting the state where you business is located, you can ensure that proper tax is calculated for purchasers who also live in your state.

How to Setup Sales Tax on eBay:

  1. Go to My eBay
  2. Click the Preferences link from the left-hand navigation bar
  3. Click Show in the Payments from Buyers section.
  4. In the Use Sales Tax Table section click Edit.
  5. The Sales Tax Table page appears.
  6. Find the state you want to start charging sales tax in (the state where your business is operating) and put in the correct sales tax amount in the Sales Tax Rate field. You can also opt to charge sales tax on shipping and handling too if required.

For your website, there are plenty of tax software that will help you keep track of tax you need to collect and pay such as Avalara and CCH. If you sell on SaleHoo Stores, setting up your sales tax collection is automated and easy. 

Records to Keep

You need to keep your resale certificates or file as part of your business records. You must be able to match your sales records with resale certificates for audit purposes.

Reporting Sales Tax

How often you need to complete Sales and Use Tax reports will depend on your monthly sales turnover and the state you are working from.

It's very important you are sure to collect the correct amount of sales tax as you will be held liable for any owing.

Note: Trading Assistants do not need to collect or remit sales tax.

50 Comments view all Add your comment
Hi. Im planning to sell in ebay and some online selling site.. Some items are my preowned and some are bought from store clearance and i want to sell online.. Do i need to get any license. Im from ny Reply
Site Admin
Hi there!

The reseller license helps exempt you from paying taxes on goods you buy from a wholesaler. Since you're not buying from a wholesaler, I'm not sure you need one. That does not, of course, exempt you from reporting the income you make from eBay and other sites when you file your income taxes. If you plan on scaling up your business, you may need to get one eventually, though.

http://www.nbcnews.com/id/11658852/ns/business-answer_desk/t/do-i-have-pay-tax-stuff-i-sell-ebay/#.U9kZsPldWSo Reply
Hello
I plan to start a small business online reselling items I would purchase from wholesalers but I dondo It know exactly where to start. What exactly need to start? Reply
Site Admin
Hi there, Fiona!

I recommend looking over our seller training center: http://www.salehoo.com/education
There are a lot of resources that will walk you through what you need to get started.

You can also visit the forum: http://www.salehoo.com/forum/
You'll find a lot of users there who have already gotten started, and they can give you advice on what steps to take.

Hope this helps! Reply
Hi, I own a nail salon but I would like to put eyelashes on, I want to buy eyelash from a wholesale company because they are cheaper but they need a resale license, how do I get that? But I am not selling them. Just charging for the labor to put them on. We don't usually charge tax on our services. Reply
Site Admin
Hi, Kim!

The reseller license is something you obtain through your state government. The rules and policies vary according to the state you're in, so I can't comment on the specifics, the same with tax requirements. It's a tricky business, no pun intended.

In a sense, I would say you are selling them -- I would certainly hope you factor in the cost of purchasing the materials into your pricing strategy, at least. That said, some wholesalers, rather than a reseller license, may accept a tax ID number as valid proof. You might try looking into that.

Hope this helps! Reply
Hi,
I live in Australia and have an Australian registered business to sell printed apparel and giftware. I am interested in sourcing US made t shirts wholesale and selling these via my website. The wholesaler says I need a Resale Certificate. I have read up on this complex document and feel very confused about whether I need to pay sales taxes or not. I have no business 'presence' in the US except for an agent in NYC. Can you clarify what I should apply for please? Is it worth paying for an accountant/tax agent to assist? Reply
Site Admin
Hi, Janet!

Since you're not a US business, you don't need a reseller's permit. You should, however, be able to provide your ABN to the company as a valid equivalent.

Hope this helps! Reply
Hi, I am helping a friend to stablish an online store that sells used or unused children clothes. She usually buy clothes from garage sell and flea market in cash with no taxes. We don't know if we have to charge taxes or not to her customers in NY and other states. She already register her company as LLP in NY. Can you clarify what type of permits, licenses the company needs? Do we need to get an EIN, sales tax ID and resell permit? Reply
Site Admin
Hi, Patricia!

So a resale permit is designed to allow you to buy merchandise from wholesalers while excluding you from paying sales tax. If you plan on getting any merchandise from wholesalers and other more established suppliers, you'll want to look into getting one.

A tax ID is for tax filings -- you'll need one of those, too.

Sales tax and more broadly tax laws vary according to what state you are in and even sometimes what county/community. In general, though, if you are selling locally, I would expect you would have to charge your customers sales tax, at least in-state.

Here's a link to a couple of NY State publications for LLPs and LCs and sales tax. They should explain things better: http://www.tax.ny.gov/pdf/publications/sales/pub750.pdf
http://www.tax.ny.gov/pdf/publications/multi/pub16.pdf

That said, you might also consider consulting an attorney or an accountant just to make sure you have all your ducks in a row. They're the experts, after all. Reply
Full Member
i have itin number with that I can sell online? Reply
Site Admin
Hi, Francisco!

An ITIN is for federal tax filing purposes only. It is not necessarily a license to do business. It's just a number that you use to complete the required tax filings.

Depending on what sort of online business you run, you'll need a state tax ID and/or a reseller's permit. I can't say with any certainty without knowing more about your situation.

Hope this clarifies things! Reply
Full Member
Hi Guys, I'm already Salehoo member but I reside In Australia just wondering about the sales tax implication that may or may not apply to my situation ,

1. I will be selling my product in the USA Amazon market place using FBA services I have already fill out exemption
for collecting any taxes using Amazon sellers central .

2, I also want to drop-ship products from USA base suppliers Wholesalers , dropshipers etc... on my own personal website how do I gain excess to purchase from these suppliers if I live out side of USA, Do I still need to give or show them resellers certificate and how do I get one if I don't live in USA ,also I already have Australian registered trading name with ABN :( Australian Business Number) which is also registered with ASIC ( Australian Securities and Investment Commission ) do I also have to list my business in the USA as well ?

What steps do I have to do to make myself legal to use USA dropshipers and wholesalers while still residing in Australia I'm just wondering what is required to be legal .

Warm Regards
Peter Reply
Site Admin
Hi, Peter!

Your ABN should suffice to get you access to US based wholesalers and suppliers who would otherwise require a reseller's permit or state tax ID.

If you are based in Australia, I do not know that you need to list your business in the U.S. Technically you're just shipping to the US, you're not based there, and your ABN should exempt you from sales tax. If you do branch out to FBA (fulfilled by Amazon), you might meet the "nexus" threshold for a business, which would require you to register in the state where your merchandise is being warehoused.

I hope this helps a little. If you're still not sure I suggest talking to a tax expert, one who has knowledge and experience dealing in your sort of situations. Reply
I'm about to start with my store, I have everything required, I'm going to be retailing my product to different shops, the only thing I'm confused is how to file my state tax return every month, I'm in Louisiana and we use here LaTap online to do it, but I don't know where I got to put my sales and taxes to report and pay them, For example if I sale to one single person one item for $7.00 and I charged 4% of taxes how I file that, or in another scenario if I sell 100 items of my product for resale to one of my customers and he have the resale certificate and dont have to pay me taxes, how and where a I put that in the sales return in LaTap, yes they have a document with some little instructions, but very confusing. Reply
Site Admin
Hi, Javier!

Every state's tax laws are different, so it's a very tricky area.

I did find this on the LA state government FAQs for sales tax:

I am a wholesaler, selling only to other dealers for resale. Do I have to collect and remit state sales tax?
No, you do not have to collect state sales tax when a dealer purchases items for resale and provides you with a valid Louisiana resale exemption certificate. These resale exemption certificates can be verified atwww.revenue.louisiana.gov. Click the “Resale Certificate” link to reach the Resale Certificate Validation page. Instructions are included on this page on how to determine the validity of the resale certificate.

http://www.revenue.louisiana.gov/sections/faq/default.aspx?type=gen&cat=SLS#faq-101

Some more links that might help:
http://www.revenue.louisiana.gov/sections/business/sales.aspx
http://www.rev.state.la.us/forms/publications/1001(01_02).pdf

I hope this clarifies! However, if you are still not sure you might consider contacting a tax professional who can help you with the issue. Reply
Full Member
Hello,

I am a seller living in the UK but just starting out selling on Amazon USA, and I am very confused about the whole system of taxes and what applies to me and what doesn't etc.

For example, because I'm using Fulfilled by Amazon, all my products will get shipped to different warehouses in different states - do I need to sign up to be taxed in each one of these? Reply
Site Admin
Hi there, Ayse!

Basically, storing your inventory in Amazon's warehouses gives you a nexus in those -- so yes, you are obligated to pay sales tax in the states where those warehouses are located. Tax laws can be tricky because they vary according to state (and if you're selling from a physical storefront sometimes even locally).

Here's some info that might help:
http://blog.taxjar.com/fba-sales-tax-nexus/

I recommend locating a good tax professional who can help ensure you're abiding by state laws and maybe help minimize the cost to you. Reply
Hi, I plan to start a business and I'm unsure on something.
I plan to buy locally (based in California but may purchase goods within the states) and sell/ship internationally. Would a basic resale license be sufficient or do I need something else?
Reply
Site Admin
Hi, Daniel!

A resale license and a tax ID should be fine. you'll have to deal with customs, but it's usually on the buyer to pay any fees or duties associated with that. Reply
Free Member
I am currently on disability and receive social security benefits. I live in Arkansas. How will this effect my benefits?

Thank you! Reply
Site Admin
Hi, Melany!

It looks like an online business like this would be considered "self employment," and you would be obligated to report any income over $400 in your tax filings. Per: http://www.ssa.gov/retire2/selfemp.htm

"If your net earnings are $400 or more in any year, you must report your earnings on Schedule SE for Social Security purposes, in addition to the other tax forms you must file."

Basically, self employment would decrease the amount of benefits you received, though the exact amount depends on how much you make selling online. Here are a couple more links that address the topic.

http://www.ssa.gov/pubs/EN-05-10095.pdf
http://www.ssa.gov/pubs/EN-05-10069.pdf

Hope this helps! Reply
HI,
my friend and I want to sell accessories and maybe hair out of our stylist hair Salon. We plan renting out a booth and doing it part time. The plan is to buy wholesale and resell of course. What licenses would we need in order to do that? Reply
Site Admin
Hi there, Tia-Mimi!

You would need a sales tax ID, so you can buy products without having to pay sales tax. You should also look into your state and local laws regarding your business taxes.

Hope this helps! Reply
Hi, i have a company in Canada and i am going to start an online business, processing wireless payments from carriers in USA. To become a dealer, the Master Dealer in Miami is asking me for the Resale Tax Certificate, can i get that certificate in Canada? Reply
Site Admin
Hi, Carlos!

the resale tax certificate is issued by US states. You won't be able to apply for one unless you incorporate in a U.S. state. in most cases, proof of your Canadian business license should be more than sufficient. Reply
Hello,

I want to start selling clothes and accessories on ebay. I would buy them from a wholesale company based outside the US. What do I have to do and need to start selling them on ebay? I am from New York and have no experience with this stuff. I just want to start something different. Reply
Site Admin
Hi, Jeff!

First of all, definitely look into the tax laws for New York. Above a certain threshold you must report that income to the state and it becomes taxable. Get yourself a sales tax ID.

Beyond that, I recommend checking out our seller training center. It has all sorts of resources to walk you through how to sell on eBay and make a profit.
http://www.salehoo.com/education

And when you're ready to find suppliers, I definitely recommend checking out our directory of wholesalers and other suppliers. You have more then 8,000 of them to choose from and they're all pre-screened so you know you can trust them.

Hope this helps! Reply
Free Member
Hello,
We formed a LLC in Delaware and we are interested in operating in the state of New York, with the purpose of reselling the product to our clients. What kind of form do we need to fill and what kind of foreign certificate or resale certificate do we need.
Thanks Reply
Site Admin
Hi there!

I actually found a really good blog post that explains exactly what you need to do:
https://blog.delawareinc.com/doing-business-in-new-york/

Hope this helps! Reply
Hi there. I am currently working for a wholesale company and am collecting resale certificates from companies who purchase from us to resell. However, we havea canadian customer who is located in canada who buys from us and resells to customers in the usa but having us ship what he buys to his customers in the usa.

Should we be collecting a resale certificate from him? If so, does he need to provide as with tax id numbers for the states he ships to in the USA? Reply
Site Admin
Hi, Bianca!

In short: you can ask your Canadian client to provide the Canadian equivalent of a resale certificate. Since he's not based in the US, he is not eligible for a resale certificate in any state.

The only states you need to worry about sales tax in are the ones where you have a "nexus" -- basically a base of operations. It can be a warehouse or an office. And even then, you only need to worry about your direct sales to consumers. If you only sell to resellers with permits, then you shouldn't have to deal with sales tax at all. However...I definitely recommend consulting a tax professional to be absolutely sure. Reply
Hello

I live in Florida and I was starting my own t-shirt line in 2011 I registered my business as a corporation and even got an ein number for it when I got a bank account but never persued it. Now instead of creating my own t-shirt line i want to move into a diferent direction I want to buy wholesale clothes and jewelry and sell them online. And keep my same business name that was for my t-shirt line. So my question is how do i go about doing this because I found reliable wholesalers but they ask for a "resellers number" before i can see the prices of the items for wholesale. So How do I go about getting a resellers number? I google it but i get different results and one place said in the state of florida you need a business license to purchase wholesale. So if i get a resellers license i cant purchase wholesale stuf in less i get a business license since im in florida? Im so confused..... Please help. Thank you Reply
Site Admin
Hi, Nicole!

It sounds like your business is already registered with the state of Florida, which is good. However, your business license isn't the same as the reseller number you're asking for. In the state of Florida, it's called an annual resale certificate, and it's a license that exempts you from having to pay sales tax on goods that you are going to sell directly to consumers. You'll get a number, and a certificate, that's registered with the state as proof that you are a legitimate reseller. That's what your wholesaler wants.

Here's a link that can get you started:
http://dor.myflorida.com/dor/taxes/annual_resale_certificate_sut.html Reply
Full Member
Hi I have a question. I am in NY and I am in the process of starting a website to sell women clothing. I have a business license and a sales tax ID but two of my wholesalers require a seller's permit. Can my sales tax ID be considered a seller's permit and if not how do I get one? I have already tried to apply for one on licensecenter.ny.gov but I could not find anything up there for a seller's permit or a resale certificate. Reply
Site Admin
Hi, Juanita!

Here's a few links I found in my research. I think these web pages explain things better than I ever could, but basically your sales tax ID will not work for resellers -- at least, from what I can see. I've never been to NY and I don't know the laws all that well:

http://www.tax.ny.gov/pubs_and_bulls/tg_bulletins/st/exemption_certificates_for_sales_tax.htm
http://nystax.custhelp.com/app/answers/detail/a_id/978/~/what-is-a-resale-certificate-and-who-can-use-one%3F
http://www.tax.ny.gov/pdf/current_forms/st/st120_fill_in.pdf
http://www.tax.ny.gov/pubs_and_bulls/tg_bulletins/st/how_to_register_for_nys_sales_tax.htm

If you're still stuck I highly recommend talking to a tax expert who should be able to help you sort the matter out.

Hope this helps!
Reply
Free Member
Hello,
I live in New York but recently registered my online clothing store in North Carolina. I used my sister's address in North Carolina when i registered the business. Now i have my EIN/FEIN numbers, i also recently got my Tax Payer ID number which i noticed is the same with the EIN number. Would this be my resale number or i have to get that seperate? Because most wholesalers require the re sellers number. Thank you.
Queen Reply
Site Admin
Hi there!

What you need is a resale certificate:
https://www.sateng.com/resale/nc.pdf Reply
Thank you for this informative post. I just want to share a good source for tax forms and tutorials - PDFfiller.com. It has a ton of Tax Forms and business templates. It helps me fill out a needed form neatly and gives me the option to esign. Reply
Site Admin
Hi, Jill --

Thanks for the great resource! Reply
Free Member
Hello I am a distributor for a weight loss company. I live in Texas but I am looking to set up a booth at a Flea Market in Florida but they are asking for a license of some sort. I'm pretty confused on to what kind of license I need to file for. Can you please help? Reply
Site Admin
Hey there --

Sounds like they want you register for a Florida business license:

From this site: http://www.stateofflorida.com/Portal/DesktopDefault.aspx?tabid=8

Thinking about starting a business or need information on how to start a business? Here are the steps to forming a new business in Florida!

You will need to think up a name for your new company. A good name should be unique, yet tells what kind of business you are doing.
Make a choice on what type of company you want to form. Do you want to:
File a DBA (fictitious name) to create a sole proprietorship or partnership?
Incorporate as a corporation or LLC (Limited Liability Company)?
Whatever you choose, you need to register your company with the state, county and obtain a bank account for the company. You are required to do these steps even if you have an online business or an at home business. For example, if you are doing booth sales regularly at a flea market or selling beauty products in an at home party setting you will need to take these steps.

You might also need a resale certificate -- I am not entirely certain on that since you're based in Texas and I assume you've made arrangements with the company you distribute for.

Hope this helps. Reply
Free Member
I am Mexican and live in Mexico. How would it work with me? Thanks! Reply
Site Admin
that depends on what you're doing exactly! Since you're based in Mexico you're not obligated to pay sales tax here in the US. I don't know what the Mexican government would require you to pay -- so you'd have to look into that. Talking to an accountant is always a good idea.

Basically the biggest thing you have to worry about stateside is if you have a "nexus" -- a base of operations. It could be an office or it could be some sort of warehouse. If you're dropshipping and the manufacturer is handling fulfillment, this isn't an issue at all. Then you would be required to pay sales tax to the state where your nexus is.

Hope that helps!
Reply
Hi, I've applied for a TX state sales tax id online and I got my sale tax number from the form they emailed that said they just needed my signature to process it. So I signed it and faxed it in but that was just a few days ago so I haven't actually received my permit in the mail yet. I have the sales tax id number though from the email so am I okay to complete a Sales and Use Tax Resale Certificate with a wholesale vendor to order some things for my business or I do I need to wait until I physically get the permit in the mail? Reply
Site Admin
Honestly, Susan, I am not sure. If there is any sort of approval still required, I would hold off. You might try contacting the supplier and explain the situation and ask them what they would prefer. Reply
Free Member
Hi There,

I am going to start my own company in fashion in San Francisco. I need to buy fabrics in wholesale prices within US to make my designs. I am not a citizen but i have a green card so ill be consider resident. I havent registered my company yet. do i need to register my company before i get the resell license? do i need to get resell license and sale tax ID? if yes could you send me he link so i can get the license permit.
Thank you
Reply
Site Admin
His, Mas --

Yes, you're going to have to fill out all the paperwork and register the business before you can get reseller's license. I think this link should help:

http://www.boe.ca.gov/info/reg.htm Reply
I am starting an online business selling products from dropshippers. I currently have my EIN and am in the process of getting a resale permit. I am sole proprietor of this business. I've read that online retail stores do not have to collect sales tax. So when filling out the business tax application with the department of revenue, I am confused as to which sales type? Sales tax or withholding tax? Reply
Site Admin
Nicole --

You need a sales tax application. Withholding tax is more for employee wages and a few other things -- nothing that involves dropshipping. You don't have to collect sales tax on sales in states where you don't have a base of operations (called a "nexus") -- but you should expect to pay sales tax in your own state. How much you pay depends on how much business you do.

If you're unsure the best option is to talk to an accountant.

Hope this helps! Reply
I live in Louisville and want to start making and selling some small container gardens and terrariums to sell at arts and crafts fairs, farmers markets and small local shops. I am going to have a website and put some of my merchandise on there also if someone would like to purchase.

I am employed full time and this will be a limited business that I will do on the side.

I have been trying to find out what I need to do get the proper licensing to do this. I have not had much luck so far.

I will be doing this myself and friend may be making some pieces and joining me down the road. Should I register as an LLC? Not sure which one?

Do I need a sales tax number ?

Do I need a resale license and will that also give me a wholesale license?
Reply
Site Admin
Hi, Donna!

You need to register the business with the state. Here's some resources that should help:
http://revenue.ky.gov/business/register.htm

Basically you need a resale certificate, which is tied into the sales & use tax account you'll set up. then you can purchase from wholesalers without having to pay sales tax.
http://revenue.ky.gov/forms/cursalefrm.htm

If you're not sure about the best legal structure for your business, I recommend talking to a CPA or attorney who can help you with deciding the best course of action.

Hope this helps! Reply
Free Member
I'm getting a contractors lisecne ... I make window treatments ,cornice boards and such I have an EIN would a contractors lisecne give me a sales tax ID?? Reply
Site Admin
Hi, Millie --

I think that's going to depend on your state. For example, Iowa contractors aren't exempt from sales tax. I would do some research (try something like "do contractors pay sales tax + your state") and if all else fails, speak to your accountant.

Hope that helps! Reply
Free Member
Hi,

We are a Canadian based online retailer and sell only to the US. We have no presence in the US yet we will purchase our products from US based wholesalers. It's very confusing but would we require a Resale Tax ID or Reseller License?

Thanks Reply
Site Admin
hi, Roger!

Businesses in the US are registered in individual states rather than at the national level, so the laws vary by location, which can be confusing. However, since you're based in Canada, you don't actually need a sales tax ID -- you should be able to provide proof of your business' registration in Canada as an equivalent. Reply
Hey,

We're a manufacturing company registered in Canada. We have a lot of US customers and have a 3PL warehouse in California to serve them. Are we able to apply for a resellers if we're not registered in the US? Or do we need a EIN in order to apply? Reply
Site Admin
Honestly, I am not sure. I know that from a tax standpoint, havign the warehouse means you have a "nexus" but if you're registered in Canada, you should be able to provide proof of your registration there as an equivalent for suppliers. You should probably speak with the suppliers directly and ask what they need. An accountant can usually help, too. Reply
Hello,

I have a different case and I hope somebody can help. I plan to purchase products form wholesalers here in the US, and undoubtedly they will require a Resell Permit to avoid charging my Sales Tax, however the products I will purchase will be exported to outside of the US and resell overseas. Is there a specific Permit that I can get for such in order to be able to purchase Tax exempt products? Reply
Site Admin
Hi, Karar --

It's going to depend on what state you're in. If you have an export license it shouldn't be a problem. It might also depend on where you have the items delivered to -- an export agent, another country, or another location in the U.S. Reply
Free Member
Hello,
I live in NY state and would like to start selling online. I would not be actually shipping anything from NY state. I would be taking orders, placing those orders with a supplier/factory and having the items drop shipped directly from the supplier. Do I need a sales tax authorization number or anything to do this? One of the places I would like to go through for drop shipping (jds marketing: jdsmarketing.net) asks for "State Resale Tax ID" to sign up for the drop ship/distributor program, but I am not sure exactly what this is and if I even need it? Reply
Site Admin
You'll need to register your business in NY and that will give you the resale tax ID. You typically don't have to collect sales tax on purchases from customers in another state, though. The tax ID proves to suppliers that you're a legitimate business.

This link should help:
http://www.tax.ny.gov/pubs_and_bulls/tg_bulletins/st/how_to_register_for_nys_sales_tax.htm

If you're unsure, you can always speak to an accountant. That's really the safest way to get your questions answered. Hope that helps! Reply
Free Member
Hello.
I am planing to open a shop on Etsy. I want to buy the products online but wholesaler require a resale tax ID number. can i get i get a resale tax id number only or do i have to register my business too? i also don't understand that you have to pay tax monthly/ quarterly, can you please explain? if i don't make enough money will the IRS tax me? I live in California do i have to tax customers form all states? Thank You. Reply
Site Admin
Hi, noy!

To get the resale tax ID, you will have to register your business in California.

Taxes will depend on California state requirements. Every state is different -- but typically you have to pay sales tax based on your sales. Some prefer it monthly, others prefer it quarterly. But you usually only need to collect sales tax in states where you have a nexus, or base of operations.

I recommend talking to an accountant. He or she can help you with registering and figuring out how often you need to pay taxes. Reply
Free Member
i am currently setting up my a e interior design business
i would love to set up a dropship situation with an American Wholesale business
However my business is registared in the UK
I am not able to get a resale licences
please advice me as to what to do Reply
Site Admin
Hi, Alica!

Typically, suppliers will accept your UK license as equivalent proof. Reply
Hello, I am setting up an online store through an app poshmark. com (similar to ebay but they specialize in women's items only), and I currently sell my clothing only. If I wanted to expand what I sell by getting a resellers permit, would i have to worry about paying taxes at the end of the year on any profits from selling items that aren't mine? they don't charge sales tax so i wouldn't be collecting any sales tax. Thanks! Reply
Site Admin
Hi, Laura --

That depends on where your business is registered. Typically, you have to pay sales tax on items sold in any state where you have a nexus (a base of operations, whether it's an office or a warehouse you own). Some states don't charge any sales tax, so you're in the clear if you're located there.

If you're shipping out of state, you don't necessarily have to collect sales tax. But it's always best to speak to an accountant, as they're the final authority.

Hope that helps! Reply
I have a small business in Jamaica. I live in Jamaica but want to buy wholesale items in the US. What do I need in order to purchase these items?. I am not aware of what I need to present to these stores that I want to purchase items from.
Also if I have family members in the US can they purchase these items for me even thought they do not have a sale tax id. Reply
Site Admin
Hi, Sam --

Typically, you would register your business in Jamaica and provide your business number as proof. That would get your the tax exemption. While your family could possibly buy the products for you, they would not be able to get the tax exemption without some sort of proof of registration.

The other option would be to incorporate your business in the states, but you'd have to set up everything properly, which means talking to a lawyer and/or an accountant. You'd also be obligated to collect sales tax in whatever state you incorporate in, as well.

Hope that helps! Ultimately, if you're not sure, I strongly suggest talking to an expert. Reply
Free Member
Hi, I live in Louisville and I will be making, and buying jewelry and accessories. I have an EIN number in addition will I need a resellers and sales tax id? Reply
Site Admin
hi, Janice -- yes, you'll need to get a reseller's certificate to collect sales tax on goods sold in-state.

Resources that might help:
http://revenue.ky.gov/business/salesanduse.htm Reply
Hi, I live in NYC and I was wondering if you could tell me more about the process of recovering taxes paid to wholesalers - I didn't have my reseller license on me. Are only taxes on purchases made within the last year eligible to be included as deductions? Is it possible to go back to the wholesaler directly to recover those taxes paid? Reply
Site Admin
Hi, John!

Those are great questions -- I think your best course of action is to talk to an accountant or other tax expert. Tax law is pretty complicated stuff, and varies by state and local communities.

I found a couple links that may be of some help, as well:
http://www.tax.ny.gov/pubs_and_bulls/tg_bulletins/st/how_to_apply_for_a_refund_of_sales_and_use_tax.htm
http://www.tax.ny.gov/pdf/publications/sales/pub843.pdf Reply
Full Member
Hi, I live in Mexico, I´m registered in the tax department, I pay my taxes, but i want to sell on Ebay, do i need a reseller license sales tax id ?

Another question is... If I want to sell on Ebay how can i ship directly the product to the buyer, because the payment is made by paypal, and this company send the pack to the registered adress on the account. Reply
Site Admin
Hi, Alfonso --

To sell on eBay, you don't need a resale certificate. That's just for dealing with suppliers in the US. It'll exempt you from paying sales tax when you purchase from wholesalers. However, you have to be located in the states to get one. Instead, when you purchase from wholesalers, you should be able to provide proof of business registration in Mexico.

For suppliers, you want to look specifically for dropshippers. They will send your products to your customers directly. I recommend this guide: http://www.salehoo.com/dropship Reply
We are a wholesale comapny. I was wondering if we have to have a copy of our out of state customers resale tax certificate or just from our in state customers? Reply
Site Admin
Hi, Kim!

Unfortunately, I can't say with certainty. Every state has different tax laws -- and some don't have sales tax at all. Your best bet is to contact an accountant or other tax expert in your state. Reply
Free Member
I am a US citizen living abroad but have family in Florida and use their address for mail from banks, credit cards, brokerage etc. I also if allowed will use it as my registered address at online retailers that I frequented before I moved abroad. Ebay forced me to update to my current address due to concerns of a foreign ip address signing in but haven't given me any issues since. My question is this, I want to drop-ship, sell on ebay, supply the product from a wholesaler in California. I have a SS, I also have a tax id # for an LLC I was thinking of letting go defunct due to that consulting gig is done. Should I apply for a new tax id? Am I considered to be based abroad, Florida, nowhere? Should I renew the LLC which is registered in Florida? Reply
Site Admin
Hi, Robert --

Those are some tricky questions. The biggest issue will be sales tax/VAT. Technically, since you're the one running the business, wherever you are located is your nexus, your base of operations, and that will obligate you to follow local laws for tax -- even if you're abroad. If am not sure you are able to use the Florida address as your registered address unless you actually conduct some operations from there.

Your best bet is to talk to an accountant or other legal/tax expert to clarify these questions. Laws vary so widely from state to state and country to country that it can be difficult hunting down the information on your own. Reply
Free Member
how do I recover my resale # Reply
Site Admin
Hi, Alphonso!

I would contact the state to get the number. Reply
Hi SaleHoo Team,

I'm from the Philippines and I'm planning to avail your dropshipping program.
However I understand that for legal purposes, I need to open up a US Bank account like LLC for me to avail an EIN.
For that, it sounds pretty simple because a lot incorporation are offering it online nowadays.
I just dont know how to avail my Reseller's Permit (Sales Tax) if I'm from outside the US.

Can I get done online too just like EIN? Is it free?

If you could give me some links on how to avail it then it would be very helpful.

Thanks and more power to SaleHoo :) Reply
Site Admin
Hi, Michelle --

I think you should contact Support with your questions. They should be able to answer your questions. Good luck!

http://www.salehoo.com/support Reply
Hello, I live in New Hampshire, no sales tax here, but I want to start buying from wholesalers to add inventory to my ebay store, they all seem to require a tax id, how can I get one? Please help! Reply
Site Admin
Hi, Michelle!

This is what I found: http://revenue.nh.gov/assistance/resale-exempt-certs.htm

It appears that you just need to let them know you're in NH, which doesn't collect sales tax. Reply
Where can I go to get started buying wholesale and selling retail on Internet and in a store in an Y State ? This article was somewhat helpful .thank you . Reply
Site Admin
Hi, Theresa!

You'll need to find a wholesale supplier and set up an online store. If you're wanting to sell in a brick and mortar location, you'll have to get premises and all the trappings that come with a brick and mortar location -- and of course you'll need a solid plan for how you want to run your business.

To find wholesalers, I recommend signing up for our directory -- you get access to more than 8,000 suppliers. You can also create an online store with SaleHoo stores, but there are other options as well, including Amazon and eBay, of course!

http://www.salehoo.com/directory
http://www.salehoo.com/stores

Good luck! Reply
Full Member
I am located in New York and I want to sell goods with my partner in Africa who has buyers, (both large and small orders), For some items, I would purchase them from an outlet store, lets say in NY or NJ, order other items online, and order it to my shipping forwarding company that is based in Delaware that would forward it to Africa. When I make that order from online or in store, although I am physically in NY/NJ they don't charge tax because the place it is going is in Delaware where there is no Sales Tax. How would I go about taxes with these items? Do I need a resale license? I don't have an LLC yet but plan on setting one up this month where it makes the most sense. If my buyer needs to pay taxes on these, where can I find out how much they would be.

Thanks Reply
Site Admin
This is tricky.

If you're selling things actually in the States, you need to worry about collecting sales tax and paying it to the state. But it doesn't sound like that's the case -- you're selling in Africa, which means you're subject to both customs and whatever tax laws are in place in the countries where you sell.

That said, since you're in New York, you should register your business there (you technically have a nexus there, since it's where you live and operation) to get your sales tax exemption.

If you're stuck or unsure of what to do, I recommend talking to either an authority on experts or an accountant/attorney versed in this kind of tax law. That's really the best way to make sure you're in compliance and doing everything correctly.

Hope that helps! Here are a couple other links that might be of assistance:

http://www.tax.ny.gov/pubs_and_bulls/tg_bulletins/st/exemption_certificates_for_sales_tax.htm
http://www.salestaxsupport.com/sales-tax-information/question/sales-tax-exemptions-on-export-sales/ Reply
Hi,

I am located in miami florida and am going to start an online dropshipping business with different companies that I have found on salehoo. I just applied for an EIN and received it through http://www.irs.gov/. I am wondering if I need to get any other things done, such as applying for any other tax documents or things of that nature, in order to be legally eligible to do the business.


Thanks Reply
Site Admin
Hi, Nancy --

You'll also need to register your business in Florida: http://www.stateofflorida.com/corporations.aspx
And plan on paying sales tax! It's definitely a good idea to talk to an accountant to make sure you're all squared away there.

Hope this helps! Reply
I'm a military spouse living overseas (Okinawa, Japan) and would like to purchase wholesale fabric both to sell & sell products made from the fabric. What do I need to do? Reply
Site Admin
Hi, Lacey --

I'm honestly not fully sure. I recommend talking to a legal/tax expert about it. If you're living on a base, you're technically still living and working on U.S. soil, so you should be able to set up your business and register it in the states, then use that registration to purchase wholesale fabric without having to pay sales tax. However, I'm not sure of the exact process for you.

Hope that helps! Reply
Hello

I have a business in Delaware, how do I get a resale tax certificate?

Regards Reply
Site Admin
Hi, Ryan -

Delaware does not charge a sales tax, so there's no need for a resale tax certificate. Instead, you should be able to provide proof of your business's registration in Delaware to wholesalers and they should accept that.

http://revenue.delaware.gov/services/Business_Tax/Exemptions.shtml

Hope that helps! Reply
Free Member
Hello, I followed your post and Q&A. They are informative. I have question about opening resale permit. I am on H1b working visa. Planning to apply resell certificate to resell online(ebay,amazon) buying from wholesalers. Am I eligible to apply for resale certificate? I am on the process of my Green Card(GC). What kind of entity I can form. Do I need to have some GC holder should be partnered? Please advise. Reply
Site Admin
Hi, Siva --

It looks like you would not be eligible to apply for a resale certificate since you would not be able to work the company you created with an H1-B visa. The most it appears you can do is be a passive investor -- put money in and let someone else make the operational decisions.

I don't know how obtaining your green card would change that. I highly suggest talking to an expert in taxes and immigration to find out when you'd be eligible to create your business and what your limitations are.

Hope that helps! Reply
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