Question 1

What is a resale certificate?

Accepted Answer

A resale certificate is a document that allows registered retailers to buy items for resale without paying sales tax on those items. You'll need to present some form of a resale certificate document to a supplier should you want to buy items for resale without paying sales tax on those items.

Question 2

What can I buy with a resale certificate?

Accepted Answer

You can use a resale certificate to purchase taxable items (tangible personal property and taxable services) that you intend to resell, tangible personal property that you buy to lease or rent to your customer, taxable services performed on tangible personal property in your resale inventory, and tangible personal property used in performing a taxable service when you transfer care, custody and control to your customer.

Question 3

Can I register for multiple states?

Accepted Answer

Yes, you can register for a resale certificate in more than one state. To use a resale certificate, you must first be registered to collect sales tax with at least one state. Most states allow vendors to accept out-of-state resale certificates, but some states (Alabama, California, Florida, Hawaii, Illinois, Louisiana, Maryland, Massachusetts, Washington, and Washington D.C.) require you to register with their state specifically.

Question 4

Do I need to present my certificate for each purchase?

Accepted Answer

No. However, some businesses have internal procedures requiring you to present your certificate each time you make a purchase for resale. It's always good practice to have your certificate readily available.

Question 5

Do I need a Federal EIN to register?

Accepted Answer

Any entity other than a sole proprietor will need an EIN (Employer Identification Number) to register for a tax number. Sole proprietors can use their Social Security Number.

Question 6

How do I apply for a Federal EIN?

Accepted Answer

To obtain a Federal EIN, visit www.irs.gov to apply online or download IRS Form SS-4, Application for Employer Identification Number. You can also contact the IRS by phone at 1-800-829-4933.

Question 7

Is there a fee for a resale certificate?

Accepted Answer

Yes, our company charges a service fee to help you gather all your information, review it, and make sure it is submitted without any errors. This helps you receive your certificate without any issues or delays.

Question 8

How long does it take to get my certificate?

Accepted Answer

We will process your application within 24-48 hours after all validations are done. You should receive a hard copy of your certificate via mail within 2-3 weeks. Each state's processing times may differ.

Question 9

What information do I need to apply?

Accepted Answer

You'll need your SSN or FEIN, driver's license number, owner and partner information, business name, business address, and details about the type of products or services you plan to sell.

Question 10

Does the address on the certificate need to match my location?

Accepted Answer

No. 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.

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