Please Note: These licenses will only cover state and state-collected tax jurisdictions. If you are in a home-rule home rule city, contact that city for their license requirements.
Find out which cities are home-rule. For businesses that make retail sales in Colorado: if your business makes both retail sales and wholesale sales, then the Retail Sales Tax License allows you to do both.
You have one business location where you will make retail and wholesale sales. You have more than one business location where you will make retail and wholesale sales. The sales tax license enables the business to collect sales tax when they resell the items. For a temporary location other than your regular business location and valid for one event only where there are three or more vendors. This is a two-year license which is free to all standard sales tax license holders.
If you are filing taxes after the event and do not have a license, you may use Revenue Online to get the Single Event License and file the return. 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. 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:. 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.
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. 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. A reseller is a person or entity that purchases products for resale rather than consumption. Both retailers and wholesalers are considered resellers, as they resell goods, either to end consumers in the case of retailers, or for retailers to purchase in the case of wholesalers.
A reseller will buy goods, then add a mark up to the sale price in order make a profit, and then resell the product at the higher price to the end consumer. 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. These are not the same thing. 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.
Some states prefer one term or the other, and many states combine the documents into a single license or state tax ID. To find the registration for your state, click on your state in the map further up in the post. 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. 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. Businesses use their EIN to pay employees, and to file business tax returns. 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. 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.
You can then give this number to suppliers to buy goods for resale without paying the sales tax for those items. This means it has the same function: to allow you to buy items for resale without paying the sales tax for those items yourself.
Most states have an online application system to make it faster and easier for you to apply. Simply click on your state to go through to the registration page or info for your state. Click on your state to find the right sales tax information for you, and register for your license. Find this useful? Spread the love: Share it.
Related posts you may be interested in Comments Sign me up to become a free member of SaleHoo. Add Comment Already a member? Login to comment. 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. No ONE except this article said this!!!! Thank you!
Aaron Warren on 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. Kingsley Egeke on 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?
You might still make sales to customers in the U. Hope this helps! 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 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! Wilfred Obi on 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? I'm sure they will be able to guide you accordingly. But I am planning to order from China do I need a resell certificate. Delphi on 18 Aug Where did you find the "reseller's permit" for New Jersey? Is it called something else? Kathy on 11 Feb I would like to know is it necessary to have to register a logo to start your own toy line?
I have some tax questions, would appreciate if you can provide some advice. Burkina Faso. Cape Verde. Central African Republic. Democratic Republic of the Congo. Equatorial Guinea. Ivory Coast. Libyan Arab Jamahiriya. Saint Helena. Sao Tome and Principe. Saudi Arabia. Sierra Leone. South Africa. South Sudan. United Arab Emirates. United Republic of Tanzania. Western Sahara. New Hampshire. New Jersey. New Mexico. New York. North Carolina. North Dakota. Rhode Island. South Carolina.
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Returns Communications. Returns Excise. Returns Sales and Use Tax. VAT Reporting. VAT solutions. Clear all See results. Sales tax permits: A state-by-state guide.
Gail Cole Nov 4, Updated November ; originally posted March Who needs a sales tax permit? How do you get a sales tax permit?
How much do sales tax permits cost ? Licenses must be renewed annually effective January 1, A separate city license fee may be required.
The certificate may be in any form, but a blank resale certificate is available online. The certificate may be in any form so long as it contains:. For more information, please see Sales for Resale Publication
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