Money, sales tax and addresses · A term for founders abroad
What is a resale certificate?
A form a registered seller gives a supplier to buy goods for resale without paying sales tax, based on its sales tax registration in a state.
Checked against the IRS's instructions and the states' own rules. Reviewed by Saais Patel, compliance reviewer.
Term 83 of 105 in the glossary, filed under R.Every term, A to Z
Resale certificate, for a founder abroad.
A retailer buying stock to resell doesn't pay sales tax on it, because the tax is collected from the final customer. The retailer shows that with a resale certificate tied to its sales tax registration in a state.
A US LLC buying from US wholesalers usually needs one, which means registering for sales tax in a state first, even before it reaches any threshold. We register you in one state for $149 plus the state's fee.
Read next · guide · 3 minSales tax for non-resident sellers: nexus, marketplaces, and when you actually registerWhat founders ask next.
- Can I get a resale certificate without registering for sales tax?
- No. The certificate rests on a state sales tax registration.
- Do I need a resale certificate to sell on Amazon?
- Not to sell. You need one when a US wholesaler asks for it before selling you stock tax-free.
03 · See also
- Money, sales tax and addressesNexusThe link with a state that obliges a seller to collect its sales tax, created by a presence there or by sales above the state's threshold.Read the term
- Money, sales tax and addressesMarketplace facilitatorA marketplace such as Amazon or Etsy that state law makes responsible for collecting sales tax on its sellers' sales.Read the term
- Money, sales tax and addressesSales tax permitA state registration that lets a seller collect its sales tax and buy stock for resale tax-free; needed once there's nexus, and not a business licence.Read the term
- Money, sales tax and addressesEconomic nexusSales into a state above its threshold, usually $100,000 a year, which makes a seller elsewhere collect that state's sales tax with no presence there.Read the term
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