Do I Need a Resale Certificate?

If you're setting up a new business (or already in business) and selling products and not sure whether you need a resale certificate, you need to watch this video.
Here, I break down what a resale certificate and how it will save you from paying sales tax on your inventory, how it's different from a seller's permit, how to get a resale permit, and more.
Guide to getting a resale certificate in each state - startup101.com...

[@nilsagotay894]

Thank you so, so, so, so much. you are the only person on the whole you tube that answered my one simple question! I was wondering where do i send the resellers certificate after i fill it out. Thank you so so much!!! I have my certificate of authority for my state and understood these were different like you said, but I couldn't find anyone to answer this one simple question, but finally. I hope who ever needs to hear this watches this video too.

[@_StartUp101]

Glad you found this video and that I could help! Greg

[@fabioverdianidesigns]

You are so clear!!

[@_StartUp101]

Thank you!

[@amywyle9181]

Your videos have helped so much ... Thankful for you. ❤

[@_StartUp101]

Awesome! I appreciate that!

[@best4you2024]

Thank you

[@ARome-nh7lu]

Hi I just got my sellers permit in California. Can I go into a major retailer and just provide my seller ID Number or do I have to print out a California Resale Template, put in the retailer name for each template and walk around with 10+ papers because I don't know what store I'm going to shop at. Thanks

[@_StartUp101]

Most retailers want the form, but others will just need your number. You will only need it for your first purchase, but after that, they will have it on file. To make things a little easier, you could just fill out your information and leave it up to the retailer to enter their info. Thanks! Greg

[@safetyelectrical1764]

hi I just wanted to ask one question . I have a sales Tax permit for Wywoming . How can I get a resale certifictate now .

[@_StartUp101]

In Wyoming this is referred to a Sales Tax Certificate of Exemption. Here is more info on the process - startup101.com/wyoming-certificate-of-exemption/ Thanks! Greg

[@user-qc4rz3fk9h]

Hi There, Great informative video, thanks a lot for sharing, I have a couple questions regarding the resale certificate. Can you get a resale certificate from a packaging wholesaler like Uline if you will use the boxes for shipping the products you sell online in the US? Technically you are adding the cost of the boxes in the sale price and obtaining sales tax out of them but not sure if that qualifies for resale. lastly, there are two sections you are required to choose for NJ resale certificate form NJ State provided which are as follows "The services described above are being purchased (check the box that applies): a) By seller who will either collect tax or will resell services. b) To be performed on personal property held for sale. . This is a little confusing, in the case of buying boxes to ship your products are we supposed to select option "a"? Thanks in Advance

[@_StartUp101]

Most states, including New Jersey, allow for tax-exempt purchases of packing materials. Here is some more information from the NJ Division of Taxation that may be helpful - www.nj.gov/treasury/taxation/pdf/pubs/sales/su6.pdf (page 13&14). From their example, you would use a different form to purchase packaging materials ST-4 (exempt use certificate vs ST-3 (resale certificate). Hope that helps! Greg

[@abdulhayat645]

first of all thank you for uploading such an amazing and informative video, I have a question Do i need a reseller certificate to buy electronics items from the wholesale supplier and exporting it overseas.?

[@_StartUp101]

As a US company buying from a US wholesaler, regardless of whether you're selling locally or exporting, the resale certificate will let you purchase your inventory without paying sales tax. Taxes and fees on exporting aren't always straightforward, but a resale certificate is a good thing to have when purchasing inventory domestically. Hope that cleared things up. Thanks for stopping by! Greg

[@charmed2284]

Do I need a resale certificate when buying for major retailers? I run a gift basket business and plan to use a combo of wholesale/retail. For small things I go to Target, World Market or Home Goods etc for little odds and ends , even those these places aren't known for wholesale no talk about how to register. Is it needed for places like that? Would that mean I need a resellers certificate for Target, World Market and every separate major retailer I use?

[@_StartUp101]

Awesome question! No, you don't have to get a resale certificate, but I generally recommend getting one; unless the dollar savings are so small, it isn't worth the effort. There are a lot of people who buy stuff from retailers to resell, sometimes to add to finish off a product like you are, and others who buy on clearance to resell. There is no guarantee the retailer will take it, but most will. The first time, they will get your information and enter it in the system. After that, every time you go to checkout, you will say the sale is tax-exempt, and it's done. If you aren't able to purchase tax-free for whatever reason, keep track so you can deduct the sales taxes you paid so sales tax isn't being paid twice (once on the purchase of inventory and then again when you charge the customer) Hope this helps, but if you have more questions, please let me know! Greg

[@user-bu1wy7rl3v]

hi, im still confused... so im planning on starting a POD business with ETSY and Printify. Printify in their tax section is asking if i want to apply for a resale certificate. I live in TN is there any harm is applying for this or is there something im missing?

[@_StartUp101]

Great question - and it's not a straightforward as you may think. So, Etsy collects the sales tax due from the customer when they buy something. Even though Etsy collects the sales tax, since you are physically operating in Tennessee, you will need to get a sales tax permit from the Tennessee Department of Revenue (see more here - startup101.com/how-to-register-for-a-sales-tax-permit-in-tennessee/) Then, after getting the sales tax permit, you can get the resale certificate. This lets you buy the inventory from Printify without paying the sales tax. So, yes, you should get the resale certificate (and sales tax permit). This way, Printify doesn't charge you sales tax, and Etsy collects the sales tax from the person buying your products. This simplifies your tax reporting and you don't have to wait for the state to reimburse the sales taxes you would have otherwise paid to Printify. Hope this answers your question, but if not, let me know. Thanks! Greg