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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 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!
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!
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
What if the buyer is in a duty-free country which has no taxes, such as Bermuda, the Caymans, and Saudi Arabia? Would a business licensce suffice?

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!
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!
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
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.




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:


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:

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:

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
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://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
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
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

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.


Some more links that might help:

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

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:

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?
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.


Hope this helps! Reply
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

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.

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
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:

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

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:


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!
Free Member
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
Full 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!
Free Member
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
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?
Site Admin
Hi, Donna!

You need to register the business with the state. Here's some resources that should help:

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.

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

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

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

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
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:

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
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
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