How To Get a Resale Number

If you are buying products for resale through your business, you should have a resale number, also known as a license, or sales tax identification number.This permit will allow you to collect and pay sales tax in your state.If you have a resale number, you can purchase items from distributors and wholesalers without paying sales tax.

Step 1: Determine if you need a permit.

Most states have sales tax on goods you sell.If your state does not charge sales tax, it will have a Business License that functions in the same way.Regardless of whether or not you pass along the cost to the consumer, you will be responsible for paying sales tax on each transaction.If you sell goods over the internet to a buyer in the same state, you’ll have to collect sales tax.If you sell an item to another person in Arizona, you’ll have to pay sales tax.If you sell less than $4,000,000 a year, you don’t have to pay sales tax to buyers who live in other states.If you live in Virginia and sell to a buyer in Florida, you don’t have to pay sales tax.

Step 2: You can learn how to apply in your state.

The application for resale numbers is handled by different states.You need to apply through the California State Board of Equalization.You need to apply through the Department of the Treasury in New Jersey.If you use the internet to search for resale numbers in your state, you should be able to find the office where your application will be made.It is possible to apply online or in person in most states.

Step 3: The documents are needed for application.

If you have a business partner, they need to be willing to provide information for the application procedure.You’ll be asked to provide your social security number, date of birth, drivers license or state-issued identification number as well as information about your business, such as your bank account information, names and locations of your suppliers, and average anticipated monthly sales figures.If your business is a corporation, you need to provide the following information.You will need to give information about the structure of your business.Additional information may be requested.The requirements vary from state to state.The information should be used to prepare.

Step 4: Pay the required fee.

Most states charge a nominal fee for a resale number.The state department in charge of issuing resale numbers should be paid the set fee for the resale number application.You will need to pay $50 to the South Carolina Department of Revenue.You’ll get your resale number right away if you register online or in person.It may be several weeks before your tax number is issued if you register through the mail.You are free to start doing business immediately.You can charge sales tax if you apply for a resale number.

Step 5: There are benefits to getting a resale number.

If you have a resale number, you won’t have to pay sales tax on items you buy for resale.If you purchase a new desk, you’ll have to pay sales tax.If you provide your resale number, you won’t have to pay sales tax if you buy a warehouse full of desks.If you are going to resell the products you purchase, you need to prove that you have a valid license and Sales Tax ID number.Most states require you to provide your resale number in order to open a commercial checking account.

Step 6: How many locations does your business have?

You must display a resale number for each location if your business operates in more than one location.It is possible to file for a consolidated permit for multiple business locations.Your sales tax permit can be canceled by a retailer or revoked by the Department.If you have more than one individual sales permit, you may be able to file for a consolidated tax return.

Step 7: If your resale number is lost, ask for a replacement.

You can request a replacement copy of your resale certificate if it’s ever lost, damaged, or destroyed.You can speed up your results by providing your business name, original sales tax number, 10-digit phone number and email address.You have to contact the same department from which you applied for the resale number.If your resale number was issued through the state Department of Revenue, you should contact this office for a replacement copy.If you have a request, you can make sales and collect sales tax.You don’t have to wait for your certificate to be restored.

Step 8: Current status should be kept up to date with the state.

Updating your information on your resale number certificate is necessary if you make any significant changes to your business.If you change your legal status, you need to make sure the state is aware.You need to update this information on your resale number application if you change your address.You need to let the state know that you’re no longer in operation if you decide to dismantle the business.If you decide to sell or purchase a business, you need to let the state know.