Whether you are starting a new business or expanding your current one, obtaining a resale number is essential if you want to purchase goods for your business without paying sales taxes. A resale number, also known as a seller’s permit or reseller’s license, lets businesses avoid paying sales taxes on items they purchase with the intent to resell to customers. In this article, we will outline eight steps to help you obtain your resale number.

1. Determine the need for a resale number:

Before you start the process of obtaining a resale number, make sure your business requires one. If you intend to buy items at wholesale prices and resell them to the public, then this is a necessary step.

2. Research your state’s requirements:

Each state has its own rules and regulations regarding resale numbers and permits. Visit your state’s Department of Revenue or taxation agency website to learn more about their specific requirements and determine if any additional steps are needed.

3. Register your business:

If you haven’t already, make sure your business is registered with the Secretary of State as an LLC, corporation, or another legal entity. This step may be a prerequisite for acquiring a resale number in some states.

4. Gather required documentation:

In order to apply for a resale number, be prepared to provide personal and business information, such as:

– Contact information

– Business name and address

– Employer Identification Number (EIN) or Social Security Number (SSN)

– Estimated monthly sales tax figures

5. Complete the application:

Once you have gathered the necessary information and documents, visit your state’s Department of Revenue or taxation agency website to access the application form. Fill out the form carefully and accurately; mistakes can lead to delays in processing your request.

6. Submit the application:

After completing the application form, submit it along with any required documents to the appropriate agency. This can usually be accomplished online. In some cases, you may need to submit a physical copy via mail or in-person.

7. Wait for approval:

Processing times vary depending on the state, but expect to wait several weeks for your application to be approved. During this time, keep track of your submission information, so you can follow up if necessary.

8. Display your resale number:

Once approved, display your resale number visibly in your store or office, so customers and suppliers know you are authorized to purchase items tax-free for resale purposes. Your resale number should also appear on any documentation related to wholesale purchases.
With these eight steps, acquiring a resale number for your business can be a relatively straightforward process. Make sure to stay informed about your state’s requirements and update your resale number as needed if any changes occur within your business operations.