The purpose of a resale certificate is to allow you to buy goods through your business without paying local sales tax. When doing this, it’s your responsibility to collect the tax from the customer when you sell the item.
Obtaining a resale certificate will benefit your business a lot so make sure you devote time and put in a little bit of effort in applying for yours. Here are the steps and some tips you can use:
Research on how to apply in your state
Ordinances and laws on different states differ from each other. This means that the requirements, the department that processes it and the method of application is not the same. An initial internet search can save you a lot of time, and at the same time, application forms could also be downloaded from their online websites.
Gather documents and requirements
Now that you know the process and requirements needed to get your own resale number and certificate, allot enough time to acquire the requirements. If you have a business partner, your partner will also need to be willing and ready to provide information as required for the application procedure. Expect that identification documents will surely be asked for, as well as other information about your business. These requirements also vary from state to state, so step number one is very important.
Complete and submit
Now that all the requirements are settled, proceed to the designated office in your state that processes resale / tax certificates. They may ask you to follow more sets of instructions upon your submission. The authorized persons will check and authenticate your documents as well.
If you opted to mail your documents to avoid the hassle of going to the offices, make sure that all documents are correct, updated and authentic to avoid problems upon checking.
Pay any required fee
Most states charge a nominal fee for a resale number, if they charge a fee at all. If there is a set fee for the resale number application, you should pay it to the state department in charge of issuing resale numbers.
Wait for your resale certificate
If you register online or in-person, you’ll receive your resale number right away. But if you register through the mail, it may be several weeks before your tax number is issued. However, you are free to start doing business right away. As long as you’ve applied for your resale number, you can start to charge sales tax.