Business reseller license

There are other activities that may qualify a selling operation as being engaged in business in California. Due to the various rules that apply, you should contact our Customer Service Center to determine if you must obtain a permit. In general, retail sales of tangible personal property in California are subject to sales tax. Examples of tangible personal property include such items as furniture, giftware, toys, antiques, clothing, and so forth.

In addition, some service and labor costs are taxable if they result in the creation of tangible personal property. For example, if you make a ring for a specific customer, you are creating tangible personal property. Therefore, the total amount you charge for the ring including the charge for labor would be taxable.

This would also be the case if the customer provided the materials for making the ring. However, labor costs for making repairs resetting a diamond, for example are not taxable since they do not result in the creation of tangible personal property.

You are only repairing or reconditioning existing property. Likewise, labor charges to install or apply property which has been sold is not ordinarily subject to sales tax note : the labor charge should be stated separately on the bill. There are many rules governing what is taxable. You are encouraged to contact our Customer Service Center. The system guides you through the process and will assist you with the types of permits you may need for your business. You will be asked to furnish the required information when registering for a permit.

If you have a business partner, or if the business is managed by corporate officers or limited liability company managers, members or officers, those persons will also be asked to furnish some of the required information.

The reseller must collect the sales tax from its customers and send it to the state. The state may require that sales tax is remitted monthly, quarterly, or annually. The sales tax laws vary by state, and each state has its own sales tax rates.

In some states, local sales taxes must be collected, too. However, realize that Alaska and Oregon do allow local municipalities within their states to charge sales tax. Whether a business has nexus sufficient physical presence in a state determines if it must collect sales or use tax on the products it sells.

It may be confusing to identify if a reseller has nexus because different states have different rules on what constitutes sufficient physical presence. Note that other situations or circumstances might qualify a business as having nexus. As I mentioned earlier, different states have different criteria. When a business is considered to have nexus in a state, it will be expected to collect sales tax for that state. Other information might also appear on a reseller permit.

The documents issued are slightly different in each state. When a business purchases from a wholesaler, that company will request to see the resale license as proof that the goods being bought are for resale.

Some states have a tax exemption certificate that the reseller must complete and submit to the wholesale vendor when purchasing goods. A retailer needs a sales tax ID for every state where it needs to collect sales tax.

Some states will issue a resale certificate when applying for a sales tax ID, while others require a separate application. In states outside of where a business is registered, the reseller will need to have Foreign Qualification.

Entrepreneurs can help ensure they cover all the bases by consulting a tax advisor and attorney before applying for reseller certificates. Applying for state sales tax IDs and reseller licenses , submitting foreign qualification forms, and tracking renewal dates can demand a lot of time as you wrangle all the details and complete the necessary paperwork. We will take care of ensuring your applications are completed correctly and submitted efficiently so that you can get down to the business of building your business.

Go to the Print Annual Resale Certificates webpage and follow the instructions. Signatures are no longer required. When you present your Annual Resale Certificate to make tax-exempt purchases, you are certifying that the items or services purchased will be resold or rented. Question: If I buy from a vendor on a regular basis, do I have to present a copy of my Annual Resale Certificate each time I make a purchase?

However, some businesses have internal procedures requiring you to present your certificate each time you make a purchase for resale. If you are registered to remit use tax you will not receive an Annual Resale Certificate because you cannot make tax-exempt purchases for resale. Question: Do I need to circle one of the bulleted options on the Annual Resale Certificate to validate the certificate?

The business representative who presents the Annual Resale Certificate when buying items for resale does not need to show the purpose of the transaction. The bullets listed on the certificate simply provide examples of valid types of resale transactions.

Question: Does the address on the Annual Resale Certificate have to match the address of the customer buying the merchandise? The address on the certificate does not need to match the location address of the purchaser. However, the certificate must have the proper business name and the certificate must be current.

Question: When an on-account customer a customer with an open credit account is required to pay by cash or credit card ceases to be an on-account customer for a short time during a year and then resumes being an on-account customer, does the selling dealer a wholesaler need to get another copy of the Annual Resale Certificate? The initial copy of the certificate is sufficient.

The selling dealer can continue to sell to this customer tax-exempt for resale on either a charge account or cash on delivery basis. Question: Are vendors who sell items that are tax-exempt required to get an Annual Resale Certificate from their purchasers?

A vendor does not have to get a certificate from the purchaser for sales of items specifically exempt by law. However, the invoice should identify the exempt items. Question: If an item is tax exempt because of its usage e. If the item is tax exempt under a specific exemption based on its usage and is not for resale, the purchaser should give the seller an exemption certificate.

Question: What documentation is required to exempt sales when the purchaser is an out-of-state dealer who does not have a Florida Annual Resale Certificate for Sales Tax? Please refer to Rule 12A Important Information Privacy Notice - Disclaimer.