Who must obtain a seller’s permit?
You must obtain a seller’s permit if you are engaged in business in your state, and intend to sell or lease tangible personal property that would ordinarily be subject to sales tax if sold at retail. The requirement to obtain a seller’s permit applies to individuals as well as all businesses; corporations, partnerships, and limited liability companies. Both wholesalers and retailers must apply for a permit. You are required to have a seller’s permit and prominently display it at your place of business.
What is a Seller’s Permit & Resale Certificate?
A seller’s permit is a state registered and issued license number for your business that allows you to make sales in your state. Once you have a registered seller’s permit license and number, you may issue resale certificates to your suppliers to buy items you will sell in your business operations. Issuing a resale certificate (documenting your seller’s permit number) allows you to buy these items without paying tax to the seller. Your business will be able to sell items at the wholesale or retail level without paying certain amounts for tax to your suppliers.
Making sales of merchandise, goods or other items in your state without first getting a seller’s permit violates the law and subjects you to fines and penalties.
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Seller’s Permit vs Resale Certificate:
Many people use the terms seller’s permit and resale certificate interchangeably, however they refer to different things. This permit is also known/called a wholesale license, a resale license and a sales permit depending on the state your business is located.
A seller’s permit is a state registered license number which allows you to make sales in your state. Once you as an individual, for your company, has an assigned seller’s permit, you may then issue resale certificates (documenting your seller’s permit number) to your suppliers to buy items you will sell in your business operations.
A seller’s permit is not a buying permit. You will still have to pay tax on all the items you use rather than sell in your business (such as office supplies).