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

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.

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.

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.

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. 

Although reseller permit can vary a bit from location to location, most of these licenses will include basic information about the business such as the name and address of the reseller, their license number, business type, location issuing the permit or license, and the basic scope of what the reseller can purchase with their permit. Of course, there may be other information on the permit, which can vary from location to location. 

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.

Before you start using your resale certificate, you’ll have to double check to make sure that you are registered to collect sales tax with at least on location (whether it’s a state, province, or any other location). The reason for this is that this will serve as proof that you are truly a business and not just an individual trying to resell items. This also proves that you are eligible to buy items tax free. Note that a resale certificate isn’t a specific document. Actually, it could be a letter, note, pre-printed form, or purchase order. But what differentiates a resale license from any other document stating similar information? To qualify as a resale license that can be used for dealing with businesses, each document needs to contain the purchaser’s name and address, the type of business you’re running, the description of the products and goods that you are purchasing for resale, the purchaser’s signature and title with date, and of course, the purchaser’s seller’s permit number.

Your seller's permit number can be found on your seller's permit. Once you apply for and receive your permit, you'll be able to locate your seller's permit number any time you should need it.

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. 

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. 

Depending on the country you are based in, we recommend contacting an accountant or lawyer to clarify your sales tax obligations for selling outside of your country, as the required tax charges vary significantly between countries. 

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.

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.

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.