eCommerce Blog / How to Get a Resellers Tax ID

How to Get a Reseller Permit/Resale Certificate (Sales Tax ID)


By Wednesday May 1

Hey, would you like to pay tax that you don't actually need to pay?

I'm guessing your answer is a big, fat "Nope." No one does, which is why if you're going to get into the retail business, you need a reseller's permit (also called a resale license, reseller's license, resale certificate or reseller's certificate, sales tax permit or sales tax ID).

If you're a US-based seller, you don't need to pay sales tax out of your own pocket for the products you're reselling to others. Your customers will pay it when they buy the product. You'll collect the money and send it to the state on a routine schedule.

A reseller's license is your flag saying "I sell to others. I can buy wholesale products without paying sales tax because I pass the tax onto my customers." 



How Do I Get a Sales Tax ID/Reseller's License?

Half the trouble with signing up for a sales tax license is finding where to go!

To get started, you need to find your state tax department. For example, someone based in New York 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.

You'll find that when you've made your way to the right website, most of the information and forms you need are just waiting for you. 

That's why I've got this nifty map to help you find your way faster:

Click on your state to find the right sales tax information for you,
and register for your license.

 

 

 

 
Sales Tax Applies
 
No Sales Tax

 

 

Once you get your sales tax ID, the state will start sending you monthly/quarterly statements. In some cases, states will use your federal EIN as your sales tax ID. In some cases, they'll issue you a separate number. 

How to apply for a Reseller’s Permit in 3 easy steps

Applying for a Reseller’s Permit is actually really easy once you have the required information and documents ready, especially with the handy map we’ve created for you (see above). All you need to do is click on your state and you’ll be taken to a page where you can apply for a permit online.

However, I know from experience that filling out government forms can be daunting, especially when you’re just starting out. So let’s go through the process step-by-step.

1. Determine which states you need a Reseller’s Permit for

The first step is figuring out which states you need a Reseller’s Permit for. If you are running a business from home and don’t have any storage facilities or offices in other states, then you only need a Reseller’s Permit for your home state. If you have an office in one state and storage facilities in several other states, you will need to apply for a Reseller’s Permit in each of those states, because you have “nexus” in those locations. Use our map to get the relevant information for each state.

See more about what ‘nexus’ means below.

2. Prepare the necessary documents for your application/s

There’s quite a bit of information you need to provide, so it’s best to get it all ready before you start the process. You’ll need to provide personal identification (social security number, date of birth, driver’s license, or state-issued identification number). You’ll also need to provide documents about your business, such as your bank account information, names and locations of your suppliers, and your anticipated monthly sales figures.

Depending on the state you’re applying in, you may be asked about the structure of your business and its ownership (sole proprietor, general partnership, LLC, nonprofit).

If your business is a corporation or an LLC, you may be asked to provide the incorporation date, corporation number and FEIN number.

And if you’re applying from outside the US (say you live in Germany, but you have a storage facility in California, you

Some states require personal references and other information. You can enquire with your local county clerk’s office to find out exactly what’s required by them. Or click on your state on the map and the website should say what information they need.

3. Complete your application

Using all of the information you’ve collected, you can now apply for your Reseller’s Permit. You can complete the application online or in person. Remember, you will need to apply for a Reseller’s Permit in all of the states where you conduct your business. If you have any questions, I recommend contacting your local county clerk’s office, or the relevant local authority as they have the most up-to-date information.

You may have to pay a small fee to file your application.

Sales Tax: A Brief Overview

Sales tax is a tax levied on all sales of physical goods to consumers within most states. Some states also charge sales tax for certain kinds of services.

Not all states charge sales tax: if you live in Delaware, Oregon, New Hampshire, Montana or Alaska, then sales tax either does not apply or applies only in certain circumstances. For sellers in any other state: yes, you do need to worry about sales tax!

You can find your state's sales tax rate here. It is important that you do this, because taxes vary significantly among the different states. For instance, some have one rate that applies state-wide, while in others, the rate varies between counties and cities.

Determining what state(s) you need to pay tax comes down to where you operate. A base of operations is called a "nexus." If you are dropshipping from home, you'll only be responsible for that state's sale tax because you only have one nexus. If you have a storage warehouse in another state, you have a nexus there, too. If you opt to ship goods via Fulfilled by Amazon, you technically have a nexus in whatever state(s) your goods are warehoused in.  

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

You can learn more about sales tax here

A Bit of Extra Information for You

There are a few other things to consider when looking into the taxes you'll be responsible for as a seller. 

  • Reseller's Permits and Buying Wholesale 

    If you are a US citizen purchasing wholesale goods from a supplier 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's 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.

    The good news is, if you are based in one state but ship to customers in another, you're not obligated to collect sales tax or deal with use tax at all. Just as you're responsible for paying the use tax if you get your supplies from out of state, your consumers are responsible for the use tax when they buy from you. 

    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. As a result, many new businesses get caught in the cross-hairs. Therefore it is wise to make sure that you pay it and keep the appropriate records.

  • Collecting Sales Tax on eBay or Your Website

    The process for collecting sales tax will differ depending on where you're selling.

    If you're selling on eBay, for example, you can learn how to collect sales tax on eBay here. The process basically looks like this:

    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 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, if it's required.

    If you're selling on your own online store, or if you're planning to in the future, things can get a little tricky if you're not careful!

    The best thing to do in this case is hire an accountant, or use tax software such as Avalara to keep track of the sales tax you need to collect and pay. 

    If you create your own online shop with SaleHoo Stores, setting up your sales tax collection is automated and easy.

  • Records to Keep

    You need to keep your resale certificate(s) on file as part of your business records. You must be able to match your sales records with the 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 the difference if you come up short.

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

Common Questions on Reseller Licenses Answered!

What is Reseller’s Permit/License?

A reseller's permit or license is the documentation you need to avoid paying tax on items that you’re going to resell to customers. The sales tax for an item only needs to be paid once, and it’s paid by the end customer, not you as the seller. A reseller's permit lets your suppliers know that you are licensed to sell the items on, and that they can sell them to you without collecting the sales tax from you. Many suppliers will require a reseller’s license before they will do business with you.

Note that your reseller’s license will only allow you to avoid paying tax on items you successfully resell. If you are buying items for your business that you won’t be reselling, or you don’t end up reselling the items you’ve bought, you will be responsible for the tax on those items. 

Is a seller’s permit/resale license and EIN/Tax ID the same?

These are not the same thing. A seller’s permit/resale license is the same as a state tax ID, as both are issued by the state for sales tax purposes. An EIN or federal tax ID number, however, is issued by the federal government, not the state. The EIN is used to hire employees and manage employee taxes, and it is also used to file business taxes, while state ID numbers are used to file sales taxes. Here is the difference between an EIN and a state tax ID according to the IRS (you can register for an EIN there too).

To break things down a little further, a seller’s permit and a resale license aren’t quite the same thing either. A seller’s permit, sometimes called a "sales tax" permit or license, allows you to collect sales tax from your customers, while a resale license allows you to buy items you’re going to resell without paying tax for those items yourself. Some states prefer one term or the other, and many states combine the documents into a single license or state tax ID. You’ll find the requirements for your state when you register with them. To find the registration for your state, click on your state in the map further up in the post. 

Who will need a reseller’s permit/license?

If you want to buy products to sell, and you don’t want to pay sales tax on those items, you will need a reseller’s permit/license. For example, if you want to buy wholesale products to sell on eBay or your online store, you’ll need a reseller’s permit/license to avoid paying tax on those items. Suppliers will often require you to present one before they’ll do business with you. 

There are some states that don’t have sales tax, including Alaska, Delaware, Montana, New Hampshire, and Oregon. If you live in these states, or conduct business out of them, you might not need a reseller’s permit or license for these states. How this is managed depends on the state; Oregon, for example, issues a resale certificate for presenting to suppliers, while New Hampshire doesn’t issue licenses at all. You can use the map further up in the post to find the information pages for these states to find out whether you need a license.

What is an EIN?

An Employer Identification Number (EIN), sometimes called a Federal Employer Identification Number (FEIN), is like a personal ID number for a business. Businesses use their EIN to pay employees, and to file business tax returns. Some banks require an EIN before they’ll let you set up a bank account for your business. 

If you are a sole proprietor, you may not need to get an EIN, as you may be able to use your Social Security number instead. However, you might consider getting an EIN anyway, as this stops you from having to provide your Social Security number to others, which ultimately protects you from identity theft. You can register for an EIN here

What are Sales Taxes?

Sales tax is pretty much exactly what it sounds like: a tax applied to the sales of goods and services. The sales tax for an item or service is meant to be paid only once, and it’s meant to be paid by the end customer. When you’re buying items to sell on, you’re not the end customer, which means it’s not up to you to pay the sales tax for that item. That’s where your reseller’s license comes in! The license tells suppliers you’re a seller, and that they don’t need to charge you sales tax.

Generally, if you’re selling goods, you will collect the sales tax for those items from your customers when they buy from you. You’ll then pass that sales tax on to the state government. 

What is a Resale Number?

A resale number is the number attached to your reseller’s permit or license. When you get a reseller’s permit or licence from your state government, it will have your resale number. You can then give this number to suppliers to buy goods for resale without paying the sales tax for those items.

What is a Resale Certificate?

A resale certificate is yet another name for a reseller’s license or permit. This means it has the same function: to allow you to buy items for resale without paying the sales tax for those items yourself. 

You’ll present your resale certificate to suppliers to show that you’re certified to buy their stock without paying tax, because you’ll be charging your customers the sales tax for those items.

How to get a wholesaler’s license?

A wholesale license is yet another name for a reseller’s licence. To get a wholesaler’s license, you’ll apply through the preferred application system of the state you live in or conduct business out of. Most states have an online application system to make it faster and easier for you to apply. 

To register for a wholesaler’s license in your state, use the map further up in this post. Simply click on your state to go through to the registration page or info for your state. If you’re not sure about your specific situation, you can try contacting your state’s tax department to ask.

 

 

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Comments (464)


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Steve on 15:11 11 Oct
I operate a business in Connecticut that sells strictly online. I have a Sales and Use Tax Permit that allows me to buy tax exempt goods for resale. So far I have only purchased goods from Connecticut for resale. What would I need to do in order to purchase good from New York for resale on my online store in Connecticut? Can I use the same Permit? Should they accept it or do I need to get something from NY State?
Richelle Monfort on 11:53 24 Oct
Hello Steve,

You might find this article helpful - https://www.tax.ny.gov/pdf/memos/sales/m88_12s.pdf All the best!
Richard on 17:21 13 Oct
I live in WA state, and I am considering starting an online-only dropshipping business, which by definition would have both clients and wholesaler/suppliers from around the country as well as around the world. I have thought of doing it through eBay, through Amazon, and through my own web-based store (i.e. Shopify) with ads on social media (i.e. Facebook, Instagram, etc). None of the "how to get started" sites I've come across so far have mentioned anything about taxes or business licenses. I just randomly stumbled across this site, so I have a couple of questions. 1: Is there a certain point where if you make less than that amount each month (or each year) you do not need to file taxes or have a business license? Or are they all breaking the law, or more specifically teaching others to do so? 2: Can you get away with incorporating the sales tax into the price and not mentioning sales tax at all? For example (I will simplify the math): I have an item I want to sell for $10, and tax would be 10% or $1. Can I just sell it at $11 without mentioning sales tax, and pay the sales tax out of my own income at the end, without any issues? 3: Can I do the same with Shipping & Handling? Basically, I sell the item as $12, say it is tax free and that shipping is free, and then pay the $1 or $2 fees later when I file? 4: Is it possible to get started with the dropshipping business, keeping detailed records, and then only after sales pick up THEN get the reseller's license and/or business license (this would still be before it's time to file taxes for the time during which I got started).
Richelle Monfort on 11:56 24 Oct
Hello Richard,

To ensure that you get the correct answers to your questions as they are very specific and involve computation, I strongly suggest you visit your local county clerk's office or consult an account to explain these to you in detail. Hope this helps a bit :)
loic leroi on 10:16 24 Oct
Hi,

I live in Australia and want to use US drop shippers to sale to US customers. I have a EIN, an amazon account. But I'm still trying to get my head around the sales tax and resellers certificate.. Im not sure how to proceed with those.
Richelle Monfort on 11:08 24 Oct
Hello loic,

Since you are based in Australia, this guide should help https://www.salehoo.com/education/business-setup/registering-a-business-in-australia Cheers :)
Anna Drozhinski on 7:45 14 Nov
Hi
My name is Anna & i live in Israel.
which documents would i need for my drop shipping business?

tnx
Anna

Rakesh Mistry on 14:36 15 Nov
Hi Mellisa,
I am US citizen based Texas. I have applied for my LLC based in texas and also planning to get my Tax ID soon. I am planning to launch my e-commerce dropshipping website home based. My question is.
1. My dropshiipers are located in china and they will send order direclty to usa via epacket delivery. Once customer placed an order on my website i will let my dropshipper know and they will send order to customer directly. what will be tax implication on this. should i charge my customer sales tax?
2. I also dont pay any taxes when i purchase something from dropshipper. as they dont require my tax id. or chinese supplier dont care whether u have tax id or not.
2. Do i need any other licences to conduct business?
3. are sales Tax ID and reseller permit same/?
4. What if I have no income.


Richelle Monfort on 6:39 17 Nov
Hello Rakesh,

The best for you to do is check with your county's Tax office so you can apply the correct tax charges to your customers. It's not always required to get started with most suppliers but there are quite a few benefits in obtaining one. I'd recommend you check out the post below to give you a full understanding:

https://www.salehoo.com/blog/why-suppliers-ask-for-documents
Richard Vale on 23:19 18 Nov
Hi guys,

I'm from Canada
I have an Oregon US address
I plan to sell in Amazon.com (US)
I need EIN and Reseller cert

What about Sales Tax implications based on my above background? I know Oregon doesn't collect Sales Tax. Do I need? Any info/advice are much appreciated. Thanks!
Richelle Monfort on 4:30 20 Nov
Hello Richard,

Although you will be selling in Oregon, it might be best if you check with your tax office in Canada to be sure since you are currently based there. All the best!
Youwillsurvive.org on 0:49 6 Dec
'If you're a US-based seller, you don't need to pay sales tax out of your own pocket for the products you're reselling to others. Your customers will pay it when they buy the product. You'll collect the money and send it to the state on a routine schedule.

A reseller's license is your flag saying "I sell to others. I can buy wholesale products without paying sales tax because I pass the tax onto my customers."

I couldn't get a tax attorney or several other people to have put it this plainly.

TELL ME WHAT IT IS, WHAT IT DOES AND DO I NEED IT. No ONE except this article said this!!!!

Thank you!
Richelle Monfort on 6:09 16 Jan
Hi there,

Having sales tax nexus in one or more states means that state requires you to register for a sales tax permit with the tax department for that state (generally called the State’s “Department of Revenue”). Once you receive your sales tax permit, you’ll need to collect sales taxes on from all of your customers in those states when taxable sales are made. You will also be required to remit and file these "collected taxes from your customers"

You can read more about online selling tax concerns here: https://www.taxjar.com/guides/intro-to-sales-tax

Hope this helps!
Aaron Warren on 2:36 6 Dec
Hello,
My name is Aaron Warren, i have been researching about starting an online drop shipping store on shopify, i live in canada but will be selling to usa. The one thing that i would like some help with would be taxes, as in i am a Canadian so im guessing i would pay my income tax two Canada. but do i need to pay sale tax to usa? and would i just need two apply for a ENI and a Business Number
Richelle Monfort on 6:02 16 Jan
Hello Aaron,

Since I'm not tax expert myself, I think you will find this article helpful in getting your questions answered - https://sellics.com/u-s-sales-tax-explained-for-both-u-s-and-non-u-s-sellers

All the best!
Kingsley Egeke on 16:50 15 Jan
l really appreciate your point on this resallers tax, what of those of us who are not US resident and we do sell on ebay, amazon and other how do we register or get tax ID?
Richelle Monfort on 6:05 16 Jan
Hello Kingsley,

If you live outside the U.S. and have no sales tax nexus in the U.S. – In this case you won’t have to worry about registering for a sales tax permit and collecting taxes. You might still make sales to customers in the U.S., but if you do not have sales tax nexus in any U.S. states then you do not have to collect U.S. sales tax.
You can read more about tax nexus here https://sellics.com/u-s-sales-tax-explained-for-both-u-s-and-non-u-s-sellers

Also, might be best if you refer your concerns to an account.

Hope this helps!

Ciggu on 13:45 17 Jan
Hi, I am based in Illinois and I sell ecig online. My understanding is that IL doesn't require license just to sell ecig but the usa wholesalers want me to present retailer license. What kind of license do I need since I guess there is no license requirement to sell ecig? And do I need to collect tax from customer? I sell only ecig.
Richelle Monfort on 8:15 18 Jan
Hello Ciggu,

You will have to check with your local country clerk if you need specific permits or documentations to sell ecigarettes.

All the best!
ibrahim awel on 16:51 29 Jan
hi i live in sweden and i want to get seller iD but i dont know how to get it in the united states.
Richelle Monfort on 7:09 31 Jan
Hello Ibrahim,

A Sales Tax ID is for resellers based in the US. You can provide the equivalent in your country which is your VAT ID. Hope this helps!
Wilfred Obi on 19:22 1 Feb
Thank you for this insight. I am setting up my online store with Shopify and would like to obtain a reseller certificate so i can deal with other suppliers within the US. However, i am currently married to a US citizen and we both live in the state of Montana. Can i obtain the certificate even as i am not yet a citizen of US?
Richelle Monfort on 6:39 7 Feb
Hi Wilfred,

Sorry but it might best if you consult your local county/city clerk or accountant about this matter. I'm sure they will be able to guide you accordingly.

Cheers!
Kathy on 18:54 11 Feb
Hello I currently reside in New Jersey I have a resell certificate. But I am planning to order from China do I need a resell certificate. Being that I’m working on starting my own toy line and purchase through China.
Richelle Monfort on 6:06 12 Feb
Hello Kathy,

This guide might be helpful https://www.salehoo.com/education/importing-shipping/all-about-importing-from-china in your plans to import from China.

Cheers!
Kathy on 18:56 11 Feb
I would like to know is it necessary to have to register a logo to start your own toy line? I want to order in China but currently I don’t have the funds to hire a lawyer to help me register a logo.
Eric on 4:23 13 Feb
Hi, I'm Eric from Singapore.
I have some tax questions, would appreciate if you can provide some advice.
My business revolves around buying from US wholesalers and selling them on Amazon.com

I have 2 options right now:

Option 1: Form an LLC in the US.

A lot of the US wholesalers require a reseller permit or a business license in order to do business, and I understand that I can get a business license if I were to form an LLC in say, Wyoming.

1) Will I be required to pay US income taxes on this LLC? If I have to pay US taxes, will I still be required to pay taxes in Singapore for my income from Amazon?

2) Do I have to pay sales tax? I engage prep distribution centers in Michigan and North Carolina to prep my products before shipping to Amazon.


Option 2: Use my existing Singapore-incorporated company
1) If I decide against setting up an LLC in the US, can I use my Singapore-incorporated company when dealing with US wholesalers? Will this affect my chances of opening up a wholesale account with them as I do not have a reseller permit? I can show them my business license from Singapore though.

2) Will I be required to pay US income taxes?

3) Will I be required to pay US sales taxes?

Thank you very much and I look forward to your reply! :)
Richelle Monfort on 6:59 14 Feb
Hi Eric,

As much as I want to help you, I'm afraid I have to strongly suggest that you seek professional advice from an accountant so that you will be given the correct answer to your queries.

All the best!
KATHY JOSEPH on 17:16 17 Feb
My LLC IS FOUNDED IN WYOMING BUT..... I LIVE IN FLORIDA. IT IS ALL INTERNET BASED. DO I NEED A SALES TAX ID FOR WYOMING AND FLORIDA OR JUST WYOMING?
Richelle Monfort on 4:07 26 Feb
Hello Kathy,

If your company is conducting business in any other states than the state where you incorporated (or formed an LLC), then you need to register your business in those new states. This is often called “foreign qualification.”

Hope this helps!
Bill on 15:12 19 Feb
Hi,

We are based in the UK and have a Ltd company in the UK. We want to purchase from wholesalers in the US and sell on various eCommerce platforms in the US. Can we obtain a re sellers license in Oregon and sell out of a third parties warehouse in Michigan?
Can Salehoo assist with the paper work.

Regards

Bill
Richelle Monfort on 4:05 26 Feb
Hello Bill,

Only US based resellers can obtain sa US sales tax. Should the supplier ask one from you, you may inform them that you are based in the UK and provide your VAT number instead.

Sorry SaleHoo does not facilitate or assist in getting sales tax IDs or business licenses. I recommend consulting your local accountant, they should be able to assist you accordingly.

All the best!
Eliza on 22:10 7 Mar
Hi,

my company is based in Mexico and i want a resale cert, but i am not sure if i have to register my company and my tax ID in some government website ?

I want to buy from Texas but products cross the border, I in fact have proof that this is for re sale, but what should i do, or whom i have to do the paperwork done?

Richelle Monfort on 2:40 16 Mar
Hello Eliza,

You might want to check with your local account since your products will cross borders. Sorry I do not have enough training to give you an answer to your question.

All the best!
Autum on 16:25 16 Mar
Hello I design stationery from digital scrapbook kits at the moment only for family and friends for personal use. If I want to sell online either print to order or as a downloadable file, do I need to purchase a resale certificate or license? I live in Delaware also if that helps.
Richelle Monfort on 0:55 4 Apr
Hello Autum,

There is no sales tax in Delaware so no need to get one :)

All the best!
Andy on 19:33 21 Mar
I am a non us resident living outside the US. I have an llc formed in wyoming but have no nexus in the US. But i need a resellers certificate. How do i get one with no nexus as wyoming wont issue one with no nexus.
Richelle Monfort on 23:26 4 Apr
Hello Andy,

You will have to check with an accountant as to how you can go about getting a tax ID. As far as I know only US residents can get US tax IDs, since you are a non US resident it would be best to seek professional help.

All the best!
Helene Goodworth on 13:04 28 Mar
Hello!

I am a dressmaker and would like to buy my fabrics from a wholesaler. I think this means I need a reseller license. I have applied for one in my state (TN) but I don't have an LLC yet. Do I need to register my business before I can apply for my reseller license?

Thanks in advance!
Richelle Monfort on 23:25 4 Apr
Hello Helene,

If you are buying wholesale, or selling items you need a resellers ID. You will need a business license because you are a business end, and you need an EIN and a DBA to open a bank account.

Hope this helps!
margaret mathura on 12:10 4 Apr
I am in Canada. What tax ID I would need to sellinthe US and Canada from my Amazon sellers account?
Richelle Monfort on 0:43 5 Apr
Hello Margaret,

This Amazon forum thread should help with your concerns - https://sellercentral.amazon.com/forums/t/reseller-license-for-canadian-selling-in-u-s/388489/3

All the best!
Amos Ahchong on 23:56 5 Apr
Do I need that if I'm in New Zealand but purchasing goods from overseas?
Kasey on 8:21 21 Apr
Hi!

I currently work at a hotel and a mini golf business in Ocean City MD, but i live in Delaware. To provide better service to our customers I've often thought about reselling inexpensive items such as custom playing cards, flavored Icy pops, and any other little types of snacks or games that might be appropriate. Assuming that my employers would be okay with me doing such a thing on their property and time, what would you recommend my best coarse of action be?
James Saunders on 12:14 7 May
Hi,

Here are some challenge questions :-)

I'm a US Citizen from Florida, but my physical address is in Europe. I'm planning to start two online stores that will sell mostly in USA and secondary in Europe and other countries(as a later plan).

I have not applied yet for my EIN but starting with my SSN and a virtual address in Oregon and when I get a few sales I plan to start an LLC in Delaware then register for an EIN and DBAs.

One of the two online stores will sell Print on Demand Products and one of the suppliers of this online store is located in the USA and the others in China. The second store will sell other products from USA factories/suppliers as a dropshipping. (both stores are going to be drop shipping directly to customers).

So my questions are:

A). Are the USA dropshipping suppliers be considered as my Nexus? (shipping is going to be from their based address but it is not MY warehouse but a different business from mine such as Amazon FBA)

B). To sell online only (via dropshipping) in the USA, for both stores, will I need a wholesale license or seller's license from all states in the US that I will be selling online too? Or from the states that the droppshiping suppliers are from? (my personal physical address is not in the USA).

C). Will I have to pay taxes to the state of Florida since I was born there or just income tax (federal tax) since my physical address is not in the US and not in Florida? And if I sell to Florida from my online stores will I have to pay state tax because I'm from that state?(I mean is Florida technically a Nexus for me)?

D). Do I need wholesale license or seller's license from Florida because I'm from that state? (I mean is Florida technically a Nexus for me)?

E). And if I start selling to Europe from the LLC company in Delaware do I need to get a VAT for that LLC for selling in Europe?

F). Does your reply to the above questions apply to the Delaware LLC I plan to create as well, or to me personally (if I do business as a sole proprietor)?

My physical address is in Europe for over 20 years.

Any feedback is appreciated even if it doesn't cover all my questions. Thanks in advance

Regards
James



Richelle Monfort on 5:33 10 May
Hi James,

Because this is a delicate matter I suggest you consult with a professional so you will be given correct advise. Our training does not give us enough knowledge to answer your questions.

All the best!
Barbara Scott on 16:11 10 May
I am a Canadian wanting to buy wholesale products from US suppliers and sell on Amazon.com. Can you tell me what license and approvals I need please?
Richelle Monfort on 4:12 14 May
Hello Barbara,

It would be best that you check with your local account to be sure that you are guided accordingly.

All the best!
Neka on 11:45 30 May
Hi ,
I am trying to get started with my online boutique. I wanted to know which licenses or permit I would need to start out with. I also am starting off as a Dropshipping business. I already have applied for my EIN number and have my business name that i want. What is actually a good place to register my business name? I have already gotten my website starting off with Spotify
Richelle Monfort on 1:01 31 May
Hello Neka,

It's not always required to get started with most suppliers but there are quite a few benefits of obtaining one. I'd recommend you check out these two posts we wrote on the topic to give you a full understanding:

* https://www.salehoo.com/blog/why-suppliers-ask-for-documents
* https://www.salehoo.com/blog/how-to-get-a-reseller-license-sales-tax-id

Also this may help with your business registration concerns: https://www.sba.gov/business-guide/launch-your-business/choose-your-business-name

All the best!
Cid on 4:26 7 Jun
Hi,
I want to start a dropshiping business, so I have doubt about the seeker ID.
I would like to know if this reseller ID is it just for who live's in US?
Thank you
Richelle Monfort on 3:39 8 Jun
Hi Cid,

It's not always required to get started with most suppliers but there are quite a few benefits of obtaining one. I'd recommend you check out these two posts we wrote on the topic to give you a full understanding:

* https://www.salehoo.com/blog/why-suppliers-ask-for-documents
* https://www.salehoo.com/blog/how-to-get-a-reseller-license-sales-tax-id

If you live outside the US you may be asked to provide the equivalent like VAT ID (for UK and EU) or ABN (Australia).

Hope this helps!
Lola on 12:33 11 Jun
Hi.
I am from a foreign conuntry but want to dropship products in the US from US manufactures. Do I need to register a company in the US and get a resellers certificate in order for the manufacturers to agree to work with me?
Richelle Monfort on 5:47 12 Jun
Hello Lola,

No there is no need to register your business in the US. But you may be asked to provide the equivalent of a sales tax ID from your country.

All the best!
Ashley Y on 17:23 11 Jun
Hello. I'm located in Pennsylvania and am looking to sell bows on Etsy as a hobby. I expect to make less than $600 a year. Do I still need to get a sales tax permit?
Richelle Monfort on 5:48 12 Jun
Hello Ashley,

It would be best that you check with your local country clerk or accountant to be sure you're on the right path.

All the best!
BSYL on 19:08 2 Jul
Hello there!

I am located in Ontario, Canada - but am currently trying to start an online boutique - purchasing wholesale from US / UK / AUS.

I got my Business Number, but I know most wholesale sites would ask for your reseller's permit.

I wanted to double check - that's just the TAX ID, correct?

In Ontario that would be the 15 digit # with "RT" right?

If so, this was the form I was going to fill out.

Thanks in advance!

https://www.canada.ca/content/dam/cra-arc/formspubs/pbg/rc1/rc1-17e.pdf
Richelle Monfort on 3:03 3 Jul
Hi BSYL,

Please refer to this guide https://www.salehoo.com/education/business-setup/register-a-business-in-canada

Hope this helps!
Laura on 0:04 28 Jul
Hello,

I am a dual citizen (US and Canada) and I live in Alberta, Canada. I will be purchasing products from US wholesale suppliers and manufacturers ONLY and selling on Amazon.com. Now, I have no idea whether I should form an LLC in the US somewhere or register my business in Canada to do this.

If I register in Canada, what is the Canadian equivalent of a US tax ID and resellers certificate? I need these things in order to open wholesale accounts in the US.

Thank you!
Richelle Monfort on 3:49 5 Sep
Hello Laura,



Sorry I'm not very familiar with Canadian sale tax, but this guide might help https://www.salehoo.com/education/business-setup/register-a-business-in-canada

Cheers!
Eddie on 16:35 2 Aug
Here is a question I cannot seem to find an answer to.

In NY, if I have a legal LLC named "xyz LLC" but I have a DBA called "ABC" does my reseller certificate say "ABC"? I want it to, but when I go to use the NY Resale Cert online tool it says that my legal name is "xyz LLC"...i guess said another way can I apply for a resale cert just showing my DBA name?

Thank you
Ed
Richelle Monfort on 3:57 5 Sep
Hello Eddie,

I think it would be best that you consult with your local account for help so you will be guided accordingly.

Cheers!
Amos Ahchong on 6:16 30 Aug
HI Do I need this and tax ID, as I'm in New Zealand? Thank you
Richelle Monfort on 3:55 5 Sep
Hello Amos,

You provide the supplier with the equivalent - New Zealand also has a tax on consumption called Goods and Services Tax (GST). It's a flat rate tax, currently 15%, that is added to almost all purchases. However, you don't pay GST on residential rents and financial services. Businesses can recover the GST they pay as an input cost.

Hope this helps!
Grendelyn on 21:50 11 Sep
Hi if iam not a US citizen and i want to get a resellers certificate because my supplier is from US. Is it possible?
Rhea Bontol on 6:24 12 Oct
If you're not a US citizen and is also not paying sales tax in the US, then no, you cannot apply for a US sales tax ID. Now if your supplier requires you to have one, you can apply for a sales tax ID in your own country. It's also referred to as a reseller's license, VAT number, GST, or an ABN.
Lucy Maynard on 15:15 24 Oct
I have a new ecommerce shopify store and i want to dropship to the uk and usa.The wholesalers all want reseller licences which i dont have and a VAT number but im not vat registered yet?
Rhea Bontol on 6:30 29 Oct
You can sometimes purchase from a supplier without a sales tax ID yet and if you do so, do note that you will be charged with sales tax as if you're the end user itself.

Having a sales tax ID allows you to purchase goods in volume at wholesale rates, sales-tax free. Unfortunately, large suppliers would require reseller's of having one for tax audit reasons.
Jaikishin Aswani on 20:26 12 Nov
Hello
I live in Panama Rep of Panama and would like to sell by dropshipping in the US
We do not need to pay sales on foreign sales here in Panama.
So how do I explain this to the wholesalers in the US ?
Thanks
Rhea Bontol on 5:58 13 Nov
Most international sellers (outside USA) usually are not required by suppliers to submit a sales tax ID. If the supplier would insist, you can submit the sales tax ID equivalent in Panama. However, please note you can always inform the supplier on your case to check if there are other requirements you can submit in lieu of the sales tax ID. Some suppliers will allow this while others strictly need the requirements esp for bulk purchases so it's best to discuss these directly with the supplier.

In addition, please note that if your business has a physical presence to where you're selling from, like a brick and mortar store or an office or warehouse, then you must collect the applicable state and local sales tax from your international customers. If you do not have a presence in a particular state, you are not required to collect sales taxes for international customers.
Ami on 21:35 28 Nov
The best explanation I've come across so far. Thanks!
Rhea Bontol on 6:06 30 Nov
Glad you found this blog useful! Just remember that different countries may have different tax rules so it's also best to refer to your local trade industry for more info, specially when you plan to do trading internationally.
Krystal on 0:56 29 Jan
Hello,

I reside in California and trying to dropship from China. Do I need a reseller license in this case?

Thanks!
Krystal
Rhea Bontol on 4:33 29 Jan
A reseller's license is issued by your local government that says your required to collect sales tax from your customers in the same state where you operate your business. This means you are required to collect sales tax from customers in California which you'll then remit come tax season. So even if your suppliers are located in China or just in the US, a reseller's license is needed once you continue to make sales, as this is required from your government.
Ernest frame on 13:01 12 Feb
Legally, Do I have to have a separate resellers license for different online stores or can I use the same one for all?
For example: use one issued for an electronic store to purchase goods for a clothing site.
linda on 10:17 14 Feb
Hello,

I am trying to list the first item on Amazon in the category beauty health, but they require I provide one of the following documents :
1-Upload FDA Registration (screenshot from FDA website)
2-Good Manufacturing Practice (GMP) certificate
3-Certificate of Analysis (COA)
4-510(K) Premarket Notification

What are the measures I need to take ? I am the reseller, I shipp beauty and health products from Europe. The supplier doesn’t have the certificate of Analyses bec they sell for individuals only and this doc. is in posetion of the manifecturer, I dont have a FDA registretion as I am a reseller, neather do I have a GMP or 510(k) Premarket Notification.
I would appreciate your help on the topic.

Thanks in advance for your answer!
Rhea Bontol on 3:36 15 Feb
Hi Linda! Note that before you can legally sell items online, you need to have an approval direct from the manufacturer/s or from their authorized distributors. Try contacting the manufacturer with regards to these requirements. Their hotline number is usually provided at the back portion of their products. Otherwise, if you're purchasing from an authorized supplier, they should still be able to provide you with the same information.
Eileen on 22:27 26 Feb
I just signed up for & received a NY State Certificate of Authority so I can get my resale certificate to avoid paying tax when buying wholesale. I was asked what my certificate of authority number is, but I don't see one on the certificate. Or, I see so many numbers. How do I know what my certificate of authority number is? Is it the employee identification number that is on the certificate?
Rhea Bontol on 6:19 1 Mar
Certificate of Authority gives you the right to collect sales tax and must be displayed at all times on your place of business (for physical stores). You may refer to your state government's website for more information about this: https://www.tax.ny.gov/pubs_and_bulls/tg_bulletins/st/how_to_register_for_nys_sales_tax.htm
Victor Gomez on 1:09 27 Feb
Hi. I am in Perú but I am selling in Amazon US/CA. I am not paying any taxes since I am not an american citizen and not living there either. What can I do when I was asked this permit or license?

Regards,
Víctor.
Rhea Bontol on 6:20 1 Mar
Hi Victor! If asked for a reseller's ID, you can present one that you've acquired in Peru. In some countries, it's referred to as sales tax ID, GST, ABN, or VAT number.
Yevhenii on 16:37 14 Mar
Hello. I live in Ukraine. Registered on Amazon. Maybe in the future I want to open an online store in the United States. On Amazon I am going to trade on the FSA system. Do I need a reseller's permit or license? How to get this document while not in the US?
Rhea Bontol on 6:29 19 Mar
Hi Yevhenii! You don't need to get a sales tax ID in the US as you are not residing there. You can however, apply for a VAT number in Ukraine. VAT number is equivalent to a sales tax ID which you can acquire at your revenue department in Ukraine. In most cases, you can find out how to obtain one on your government's website.
Johan Ferdinand on 13:36 20 Mar
Hi, already have TAX ID (EIN) its the same the reseller ID? I need it or im fine just with the EIN?
Rhea Bontol on 6:36 22 Mar
The sales tax ID number is also known as the federal tax identification number, reseller's license or certificate, VAT, GST, or ABN. A sales tax ID gives you permission to tax your buyers from tangible goods purchased from you. This lets you avoid problems with tax audits in the future. As for EIN, it's also a federal number that can take place of a social security number for your business.
Kelly Bobbin on 3:44 31 Mar
Hi Great article a little confused though, I am located in AUS I have an ABN and I am looking to drop ship globally I have wholesale suppliers of Brand Name items. Do I require a re-sale license to sell and distribute in and out of the US or Does my ABN cover me
Rhea Bontol on 6:08 1 Apr
Your ABN serves as your sales tax ID so if your required by a supplier to present one, ABN is fine to do.
Jessie on 17:06 1 Apr
Hi,
I was just wondering how I can register a resale certificate. I live in Canada.
Rhea Bontol on 6:31 2 Apr
Hi Jessie! This article is dedicated for Canadian sellers: https://www.salehoo.com/education/business-setup/register-a-business-in-canada - hope this helps!
Thomas De Leon on 2:53 7 May 2019
Hi,

I am located in the Dominican Republic, however, I already have an LLC on Delaware, I have my EIN, and I have a business bank account on Florida. I currently want to buy from US Suppliers to sell on Amazon.

My question is...

1. Do I need a seller license even though I am not from the US? I understand I do, so I can pass on my taxes to the final customer, but I want to be sure. Also, I have heard that if your business is in Delaware you won't need a license. However, all the suppliers ask for one even to apply to work with them. So how does that work?

2. My business is registered in Delaware, but my bank account and mailing address are in Florida. When a supplier asks for an address, is it fine to put my Florida Address even though my business LLC is in Delaware?

Thanks
Natalia on 17:48 10 May 2019
Hi there!

So I'm a US citizen but am studying in Canada. I was wanting to start drop shipping to both US and Canada. Would I need to get a reseller's permit in the states and in Canada?
Rhea Bontol on 5:06 13 May 2019
Hi Natalia! You can apply for a sales tax ID in the US as that's your country of residence.
BIANCA PIÑA CRUZ on 14:30 19 Jun 2019

Hello!!

I'm from Mexico and I'm just starting to set up an online store (shopify) but I have thousands of doubts since I want to sell in E.U.A and my questions are should I process those reseller licenses for each state that buy my products ??
Should I process those licenses when I am already selling or before I start, should I already have them? Does Salehoo have any guide or support for this topic with online advisors? to help me to assemble all my store well from the beginning ??

 

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