Seller’s permits, resale certificates, exemption certificates and wholesale licenses: what each document does, who needs one, and how they differ from a business license or an EIN.
Usually, a DBA is not automatically required just because you need a sales tax permit. The important questions are whether your business actually operates under a name different from its legal name and how the state or local jurisdiction treats assumed names.…
Sales tax and use tax usually address opposite sides of the same purchasing situation. Sales tax is typically collected by a seller when making a taxable sale. Use tax can become relevant when taxable property or services are used, stored, or consumed…
No—not necessarily. In the United States, “wholesale license” does not have one uniform legal meaning. Depending on the jurisdiction, the phrase may refer informally to a seller’s permit, a reseller permit, a resale document, or another business authorization. The correct answer depends…
A sales tax ID and an EIN are not the same thing. An EIN is a federal tax identification number issued by the IRS for a business or other entity. A sales tax ID usually means the state-issued account number or registration…
You may need both a business license and a sales tax permit because they address different legal responsibilities. A business license generally concerns permission to operate a business in a particular location or industry, while a sales tax permit concerns state sales-tax…
No. A resale certificate is not the same as a business license. A resale certificate generally documents that a qualifying purchase is being made for resale, so the supplier can support why sales tax was not collected on that transaction. A business…
A blanket resale certificate is a resale certificate that a buyer gives to a seller to cover qualifying recurring purchases for resale. Instead of providing a new certificate for every order, the buyer supplies a certificate that the seller keeps on file.…
Manufacturers may qualify for sales tax exemptions, but manufacturing activity does not create a nationwide exemption. Whether a purchase is exempt depends on the law of the state or locality governing the transaction, the item purchased, its intended use, and the documentation…
An exempt sale is usually proved by a transaction record connected to the exemption documentation required by the state where the sale is taxed. A certificate alone may not be enough. The seller should be able to show what was sold, who…
No. A resale certificate does not automatically let a business buy without sales tax in every state. State rules differ on who may issue a certificate, which document must be used, whether an out-of-state certificate is accepted, and what types of purchases…