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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 i want to start my own online business in the US and sell products in the US so is this what i would have to have a seller's permit and if i buy products i would have to get a resellers license and a sales tax.id is that right? Reply
Site Admin
Hello Darrell,

If you are based in the US, yes you will need a reseller's license 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 and get your sales tax ID.
Hope this helps. Reply
tryn 2 figure out which license I need. Reply
Site Admin
Hello Tumika,

You need a sales tax ID which is also called a Retail or Reseller's License, State Sales Tax Id, Tax Id, Resale Number, Resale Certificate, or Vendor's License.

All of these names are referring to one thing: A certificate issued for a small fee by your state (if you live in Canada or the US) that says you are registered to collect sales tax. You can usually get one from your State's website - just Google 'Your State + sales tax'.

For example, this is where New Yorkers can apply for their Certificate of Authority to Collect Sales Tax http://www.nys-opal.com/ A seller's permit is required for retailers who buy or sell tangible, taxable items. It is required to buy wholesale and sell retail or sell wholesale.

Cheers! Reply
Starting an interior design business. Have an EIN, but need reseller certificate in state of Illinois. Who do i put down on the form for "Identify the Seller" (me?) and "Identify the Purchaser" (me?) I plan on reselling furniture to my clients that I purchase directly from the manufacturers.
Thank you!
Reply
Site Admin
Hello Andy,

I think you would be the seller in your application, but I'm not too sure on who you should indicate as the purchaser since it could mean (1)purchaser, the one who will buy from you or (2)purchaser, the person in-charge of buying stock for your business. I suggest getting in touch with your state's revenue department as they will be more qualified to address your questions. Alternately you can also try searching for the answer thru this page - https://idor.custhelp.com/app/home

Sorry I was not of much help here. All the best! Reply
Hello ... I live in Mexico and i want to resale bags and jewelry to the final costumer here... I want to buy from wholesalers in USA but can i do that? Because i saw i need a Sales Tax ID ... Can you help me? Thanks !! Reply
Site Admin
Hello Hanna,

You can secure the equivalent in your country, Mexico, which is the VAT. A VAT ID should suffice the need to provide a sales tax ID because you are based outside the US.

Hope this helps! Reply
Hi hanna castro what kind of products you sell? email me Reply
hi... i live in australia and i want to purchase dresses and other items from bali,indonesia and philippines. My question is how to get license to buy stuff from overseas to sale in
australia? Reply
Site Admin
Hello Nancy,

As per the Australian Customs and Border Protection Service, http://www.customs.gov.au/site/page4368.asp#4

"There is no requirement for companies or individuals to hold an import licence. However, depending on the nature of the commodity, and regardless of value, owners may need to obtain permits to facilitate clearance of goods. Some, not all, of the goods require permits"

So best if you check with them to be sure. Hope this helps :) Reply
Hello,
I'm an Israeli Citizen who's planning to resell baby gear products on ebay after purchasing them from USA suppliers.
As a non US resident- how do I get a seller permit/ resale certificate, given the fact that it's issued by the state I live in- which, in my case, none of them. What alternatives do I have?

Thank you in advance! Reply
Hi, I do not own my own retail business, but I am a vendor who rents a space in a consignment shop. Most of the items I sell are things I pick up from tag sales, flea markets etc. BUT, I would like to buy a few new products from a whole sale distributor to resell at my booth and make a profit. I do not collect any sales tax myself, the consignment shop owner takes care of that. Do I need a reseller license to buy whole sale products even though I personally will not be collecting sales tax on the items that are bought by the consumer? Reply
Hi! I'm looking into starting my own company selling candles and body butters. I'm just wondering how do I get started? What do I need to be legal? Thanks for any and all help! Reply
Site Admin
Hi Adele,

The reseller license will be required by US based suppliers from US based resellers, so that they can pass on the goods to them at wholesale pricing with assurance that these resellers will collect sales tax from buyers as mandated by law. I don't see this applicable to you, seeing you have already sourced your items and that you are not based in the USA.

Hi Suzanne,

I suggest you clarify this with the supplier that you plan to source products from, as they are in the best position to advice what to require from you. :)

Cheers!
Reply
Hello, Irene

First, thank you for your response!
Second, it's important to mention that I'm intended to resell the goods to US citizens only.
In addition, my intention is not only purchasing the products from the US suppliers at wholesale pricing but also tax free- and for that purpose I'll propably need a resale lisence to guarantee that I won't resell their goods for my own personal use- Won't I ?
So, my question is- what alternatives, as a non US resident , do I have for resale lisence?

Waiting for your reply, thank you in advance,

Adele Reply
First of all, I'm starting an online business. I can't buy any of my products without a resellers permit or tax id. I live in NY now however, in September I will move to Florida. SO what do I do first. I'm overwhelmed, with all of this information. Reply
Site Admin
@Adele Yes, wholesale pricing is for resale, and not for your personal consumption, hence the supplier will want to see your reseller license. :) If you are not a US resident but is in USA to resell, then you will need to comply with the state rules on tax collection, and will need to secure that license based on which state you are in. If you are not a US resident, not based in the USA, then you will just tell that to the supplier and they will state what alternative document they will require from you. Sorry I cannot state what document that will be. :)
@Tiffany I suggest that you talk to the supplier directly, as it will really depend on their policy. :) Reply
Full Member
Hmm! That document is also what I need to know for buying from SelectNutrion, United Nutrition ... They need Reseller ID, FedID, Social Security ID and blah blah ... But I'm not in US. I tried to deal with lower distributor but that make my ROI decrease to zero with international shipping fee :) ... Anyway, thanks Irene. Reply
Site Admin
@Kimberley Here's the page for you http://www.salehoo.com/education/business-setup :)
Cheers!
Reply
My friend just opened a consignment shop. Do I need to obtain some type of license if I want become a vendor within her shop? Hope I am asking this correct! Reply
Site Admin
Hello Donna,

It may depend on your friend's business policy. If her business requires their resellers to have a resellers license then yes you will need to get one. Best you ask your friend so you can comply as required.

All the best! Reply
Hi guys I have a couple question so I am in the beginning of opening an online business for clothing. Where do I go for the DBA ?? And I live in TX but I will move to FL in June my business is not running yet. I did order my merchandise but it probably be april-may before everything will start. I was wondering can I get a tax ID, reseller license in FL if i still reside in TX?? Do I need a FL address first? Besides DBA and tax ID is there anything else i legally need ??? When i looked up Tax id the webside said tax id would cost me $130.00? I thought Tax ID # reseller license and DBA is free??? Is Tax id and reseller license the same thing??? Thank you so much in advance. Reply
Site Admin
Hello Jasmin,

It's difficult to say for sure. I suggest getting in touch with Florida Department of Revenue - http://dor.myflorida.com/dor/taxes/gta_contact.html as they will be able to provide you with the right answer to your questions.

All the best!

Reply
SEEKING info please.
Hi, I opened up an LLC in Florida and I offer artwork services. I purchase canvases and design them upon custom request. I have an EIN number but as I wanted to shop wholesale I was asked for my resale license. Is the EIN number the same as a resale certificate #? Thank you kindly for your info. Reply
Site Admin
Hello Linda,

The EIN number is generally issued by the Feds (IRS) and the sales tax ID number is issued by your state department of revenue.

EIN number you acquired from the IRS. This is essentially a "social security number" for a business. When you file your taxes, you will use this EIN number as your business' ID number.

The sales tax ID also know as a resale ID/reseller ID is issued by your corresponding state's department of revenue service. When paying sales tax collected (either monthly, quarterly or annually depending on volume), you do so via a separate form than you would when filing your state and federal income taxes.

So in short they are not one and the same :) Hope this helps!
Reply
Hi Irene
I plan on having a online shoe/accessories boutique but before I get my website I want to just sell the wholesale items to family and friends. So do I still need to obtain a Tax ID or Resellers ID? Reply
Site Admin
Hello Caylah,

If its more like leisure selling and not something to intend to gain a stable income from then you should be fine even with no sales tax ID.

You may want to check with your local country clerk as to what is the ceiling amount that will make you require a sales tax ID.

All the best!
Reply
It is so great to find all this information! I have been googling forever! I have a specific question. I am a US citizen who has been working in India for the last couple years. I am now moving to Canada for grad school. I have encountered some really unique products in India and want to set up an online shop to sell them. I don't think I can start a business in Canada because I'm not a Canadian citizen. Do I need to set up an official business in order to get the reseller permit? If yes, is it possible to set up the business in the US, even though all operations, shipping, etc. will be from Canada? Thanks so much for your help! Reply
Site Admin
Hello Kiki,

Sorry but your situation may be too complicated for what my knowledge. I thin k it would be best that you check with Canada's Trade Information Line at (613) 944-4000. Their fax number is (613) 996-9709. The Canadian government provides more information at this web site - http://www.international.gc.ca/trade-agreements-accords-commerciaux/index.aspx?lang=eng

You also have the North American Free Trade Agreement (NAFTA) to consider. This agreement helps facilitates the cross border movement of business persons who are citizens of member countries.

Hope this helps you move forward towards the right direction :) Reply
Hi,
I have a customer that has locations across the United States. Their headquarters and my company are in California. We use 3rd party vendors to perform services for their locations outside of California. We have one agreement that is billed to their headquarters where we charge them applicable California sales taxes. Should vendors in other states charge me sales taxes when they service to my customer outside of California? And if they do, should they accept my California Seller's Permit to remove those sales taxes? Reply
Site Admin
Hello Chris,

This is what I gathered to help address your question:

"Online sellers are usually required to collect tax on sales made to customers in their own state. This applies if you have an Etsy shop, sell on Ebay, have your own website or sell on another online venue. If you live in Minnesota, you must collect taxes from online sales to customers who also live in Minnesota. As of now, you aren’t required to collect sales tax from buyers who live in a different state than you for online sales. "

I think you might find the other basic info from this link http://outright.com/blog/the-simple-but-sweet-guide-to-charging-sales-tax/ helpful :)

Hope this helps! Reply
Hi! I am interesting opening a business overseas opening a vitamin store plus jewerlies and cosmetics. I don't know what to do to get all documents required and which licences i need? thank you Reply
Site Admin
Hello Djene,

The licenses and documentation you need will depend directly on your current location. So can try checking with your local county clerk or with a certified accountant.

Sorry could not be of much help without knowing your location. Cheers! Reply
Free Member
Morning!

My sister has an S Company, has had it for many years, and would like to get a re-sellers license, does she need to get a Tax ID or can she get it without it?

Reply
I'm a little confused...

I have a Canadian corporation and a US EIN number.

I have an E-Commerce business but I'm trying to expand and I found a manufacturer I'd like to work with.

They require a resale certificate. Whereas my other manufacturers only required my EIN number.

I also do not live in Canada. I live abroad for most parts of the year, if that impacts anything.

I don't really know where to go from here. Reply
Site Admin
Hello Drew,

It might be best that you check with Canada's Trade Information Line at (613) 944-4000. Their fax number is (613) 996-9709. The Canadian government provides more information at this web site - http://www.international.gc.ca/trade-agreements-accords-commerciaux/index.aspx?lang=eng

You also have the North American Free Trade Agreement (NAFTA) to consider. This agreement helps facilitates the cross border movement of business persons who are citizens of member countries.

Hope this helps you move forward towards the right direction :) Reply
hi good morning. i am a Nigerian bt i buy things from the us and ship down to sell in my country. pls is it possible for me to get a resellers permit cos i come accross alot of whole sale sites and they require that. pls reply thanks Reply
Site Admin
Hello Osamede,

Not sure you can get a resellers ID since you are not based in the US. But you can provide suppliers requiring a resellers ID the equivalent from your country, like VAT registration in the EU or the UK, or your ABN or GST registration in Australia and New Zealand.

Hope this helps!
Reply
what are the steps to get a Reseller's ID or permit.?
I am to drop ship so I can sell stuff from home.
I can register a business name but for a physical address I can only get a PO BOX since I do not have a physical store. Would this be enough to get a Reseller's ID? Reply
Site Admin
Hello Guillermo,

The specific steps will depend on your current location. So the best thing you can do is get i n touch with your local county clerk or a local accountant in your area and they should be able to point you towards the right direction.

Hope this helps!
Reply
Pls can I get a resellers permit. I am not a citizen of usa and doesnt live there aswell bt wil love to purchase clothing in wholesale bt this has been a challenge. Thank you. Reply
Site Admin
Hello Osam,

You cannot get a resellers permit as you are not based in the US. What you can do it provide your US based suppliers the equivalent from your country, like ABN for Australians and VAT for EU residents.

Cheers! Reply
Hi,

I am currently in the middle to getting my ecommerce electronics store up, I have a eid and im currently filling out form st120 but I dont quite understand what to fill out as far as seller and/or purchaser in order to obtain my certificate.

Thanks. Reply
Site Admin
Hello John,

It would be hard to provide you the right answer right now as I am not thoroughly familiar with the forms you mentioned.Plus each state may vary in the type of form or info required per form. I suggest getting in touch with you local clerk or account as they are better equip with the knowledge on how to fill these in correctly.

All the best!
Reply
I've been reading through the Q & A's here, but still need some assistance. I have my NY Certificate of Authority. It seems like I still need to submit the form ST-120 for a Resale Certificate in order to purchase items wholesale. I found that form easily enough, but no where in the instructions or other online sites can I figure out where to send the completed form. Is the form used to generate a Resale Certificate from the state, or is the form alone what I send to the given seller I wish to purchase wholesale from? Thank you. Reply
Site Admin
Hello Kimberly,

Based on this https://ph.answers.yahoo.com/question/index?qid=20071106084055AAorfdO - Yes, the form is what you need to provide wholesalers when purchasing wholesale.

Hope this helps!
Reply
Free Member
Hey there! I'm wanting to start my own boutique online. I started filling out my TPT for Arizona, and it asked when my sales started! I haven't sold anything yet.. that's why I'm trying to get the license so I can buy clothes from wholesale sellers. It's a required question, so now I feel discouraged to start up my business because I don't know what to put! Thanks for any feedback in advanced :) Reply
Site Admin
Hello Shanell,

Don't be discouraged by this hurdle. Since I have not personally filed a TPT for Arizona please check with both the Arizona Department of Revenue and the licensing office(s) of the city(ies) in which you will be based and/or operate.

You might also find this resource helpful - http://www.azdor.gov/Business/TransactionPrivilegeTax.aspx

All the best! Reply
Free Member
Hi Im 16 years old and I want to get into the whole "buy wholesale sell retail" business most of the online/offline wholesalers require you to show them your Tax ID# or Resale Permit, how do I go about that? and Am I able to get one at my age? Reply
Site Admin
Hello Samuel,

Sorry but you will need your parent's help with this as you are not yet of legal age to conduct business on your own.

All the best!

Richelle Reply
Free Member
I am 31 a person a business motivated a persona, wantl resale business by buying and selling and also interested in selling suppliers products but don't know how to start, companies to contact and how to get my own website. Need help how to start. Reply
Site Admin
Hi there!

I recommend you head over to the SaleHoo forum to talk to a few of our members: http://www.salehoo.com/forum/
They can give you advice on how to get started.

You can also check out our Training Center for free lessons on a variety of topics -- getting websites, getting started, finding suppliers, etc: http://www.salehoo.com/education

If you subscribe to SaleHoo you also get access to our supplier database -- that's 8,000 suppliers that you can use to start drop shipping. SaleHoo Stores makes it easy for you to set up your own e-commerce site, too. Reply
Hello,
I am purchasing items from major retail stores and reselling them on eBay to customers in US and overseas. I live in NYC. Do I need to apply for Resale License? Thank you! Reply
Site Admin
Hi Anna,

If you are doing this or at least treating it as a legitimate business, I think it would be best that you do get a resale license. Better safe then sorry :)

All the best! Reply
Hello! I am in the process of opening a wholesale business in Texas. I am purchasing inventory from Mexico and will be wholesaling to a certain type of businesses here. I've been told by the factory that produces the items that as long as the merchandise is paid with a wire transfer from the US that I will avoid paying the IVA (mexican tax) on them. They currently ship all over the world. I will have to pay DHL, Fed Ex etc for shipping . They take care of everything in Customs. I have a DBA and I know that my customers will have to have a resell certificate but Do I need another kind of permit to wholesale that I need . I will not be selling anything on the internet. Reply
Site Admin
Hi, Leticia!

The fact that your supplier is asking you to wire money is a red flag to me -- tax issue aside, you're also forgoing some buyer protections that come with paying by PayPal or credit card. We've talked about this in a couple of our articles, and there are other sources online that talk about it, too.

http://www.salehoo.com/blog/how-to-avoid-online-shopping-scams

http://www.salehoo.com/education/scam-prevention/problems-dealing-with-chinese-suppliers

http://atg.wa.gov/wirescams.aspx#.U5oHMPldWSo

As for your question, this link may help: http://www.window.state.tx.us/taxinfo/sales/new_business.html Reply
Free Member
Hello, I'm starting a business on Amazon and I'm a sole proprietor and live in Florida. I have registered a fictious name for my business with the state of Florida. If I'm selling only on Amazon do I need to collect taxes? Do they collect the tax for me? Should I have an EIN number? Reply
Site Admin
Hi there, Robert!

Here's a couple articles that might help. As I understand it, Amazon won't collect sales tax for you, and doesn't require you to charge it to your buyers, either. If you go with Fulfilled by Amazon services, it looks like tax is added on by default:

http://www.dailyfinance.com/2014/04/29/amazons-sales-tax-move-changed-everything-and-nothing/
http://www.slate.com/blogs/moneybox/2014/05/01/amazon_and_sales_tax_the_online_retailer_began_collecting_sales_tax_in_florida.html

I'm not too certain on the tax question and the online sources are a bit spotty. Generally, if this is going to be your primary source of income it's a very good idea to plan on paying taxes. Local laws, not just state and federal ones, can affect how you operate the business too.

I suggest you contact an accountant to help you on the matter if you're going to be doing bigger business. Tax law changes all the time and it's not always well publicized. An good accountant is the best way to be sure you're not going to get in trouble or overlook something and wind up having to pay a hefty sum in April.

As for the EIN -- they're often interchangeable with social security numbers. But if you don't want to use your SSN for everything, the EIN is a good idea.

Here's a couple more links to help you:
http://www.entrepreneur.com/article/205578
http://info.legalzoom.com/register-sole-proprietorship-state-florida-22843.html
http://dor.myflorida.com/dor/taxes/sales_tax.html

Hope this helps! Reply
I am Canadian living in Canada. I have registered business so I have Canadian Tax ID and Canadian Business Registration Number. I plan to by from US wholesale suppliers and sell on Amazon US. According to my research in order for me to do business with US based suppliers, I'll need to get an ITIN (Individual Taxpayer Identification Number) and if I am going to buy from US wholesale suppliers on a regular basis, it's better to set up a US based company to do buying through that will give me a US Tax ID which is required by wholesalers? Do I also need to apply for resale certificate as well if I also sell in the US? In short, what are the initial requirements for me to start being able to buying from US Wholesale suppliers and selling on Amazon US?

Erica Reply
Site Admin
Erica, I can't find much information on the topic. from what I can tell, an ITIN works like an SSN, which is often substitute for an EIN. So that should suffice for most of your business needs. Businesses in the U.S. are incorporated at the state level rather than at a federal level, so you'll have to pick a location to incorporate in, and probably make some US contacts.

Here are a few links that might help:
http://www.sba.gov/community/blogs/community-blogs/business-law-advisor/starting-business-us-foreign-national
http://www.mnp.ca/en/media-centre/press/2012/4/2/selling-into-the-us-be-aware-of-americas-taxing-state-of-mind
http://www.tradecommissioner.gc.ca/eng/exporting-to-united-states.jsp
http://www.irs.gov/Individuals/International-Taxpayers/Taxpayer-Identification-Numbers-(TIN)
http://www.irs.gov/Individuals/Individual-Taxpayer-Identification-Number-(ITIN)

Beyond that, you really can't go wrong contacting a lawyer or tax expert who specializes in these sorts of matters.

Hope this helps! Reply
Free Member
Hello ,
I live In USA , I would like to purchased some clothes and accessories here and USA and ship them to be sold in South America, Colombia. How can I get access to the wholesale websites when they ask about the Reseller permit. But the thing is I will buy it here but ship to South America. What should I do .Thank You
Reply
Site Admin
Hi, Marisol --

You're still reselling, ultimately, so you'll still need the permit. Your business will be based here in the US, whichever state you are in, which means you'll need to pay the applicable taxes. Exact laws and regulations will depend on the state you reside in.

Here are some links that might help you though:
http://www.export.gov/fta/Colombia/index.asp
http://dhlguide.co.uk/export-to-colombia/
http://www.mbda.gov/node/1548
http://bogota.usembassy.gov/business/doing-business-in-columbia.html Reply
Free Member
Can I get a new Sales Tax Certificate for a new location even if I have an outstanding balance at my old location Reply
Site Admin
Honestly, I can't say without knowing more. State and local tax laws vary and the amount of cooperation between different agencies may differ by location. You are, however, better off paying the taxes as soon as you are able. Reply
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
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