How to Get a Seller's Permit 1-2-3
Do You Need a Seller's Permit/Resale License?
Are you starting a retail business? Are you purchasing items for resale in a state where sales tax is
collected? You will need to get a seller's permit number.
To apply for a seller's permit (or resale tax number), go through yout state's Department of Revenue or
local State Board of Equalization. Your application will then be reviewed before you can be approved for a
permit.
As a retailer, you are responsible for paying the sales tax on items you sell. Tax regulations vary by
business type, and the tax process may seem complicated. Information sheets are available from your local State
Board of Equalization or Department of Taxation or Revenue (depending on your state), and they explain these
regulations.
Sellers need to keep records of sales made and taxes associated with those sales. They generally need to
report sales tax to the state quarterly. When they submit the report to the state, they also send a check for
the amount of sales tax owed for that period.
Resale Certificate
Different from a seller's permit, a resale certificate is used when you purchase goods for resale from
suppliers or manufacturers. These are non-taxable sales, and therefore retailers need to maintain a resale
certificate on file to validate the tax-free transactions.
Federal Tax ID Number
If you need to do certain business tasks such as opening a business bank account, hiring employees, forming
a corporation, etc., you will need to get a federal tax id number.
You get a Federal Tax ID Number, or Employer ID Number (EIN), from the IRS. You can apply through their
website, by phone, fax or mail. How to Apply for
a Federal Tax ID Number If you need more information on state revenue or taxation procedures and
policies ,see the listing of state revenue websites.
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