*Required for all business IF:
- You BUY (any) product *perk is when you buy it’s tax-free with a seller’s permit*
- And then SELL it to someone else (*perk here is you charge the customer whatever it is you have to pay the state in taxes*)
Services are not required to retain a seller’s permit. For example, Bare Pearls doesn’t need one because we’re not actually selling products on our website. We’re selling services.
A seller’s permit is a state license that allows you to sell items at the wholesale or retail level and to issue resale certificates to suppliers. Issuing a resale certificate allows you to buy items you will sell in your business operations without paying tax to your suppliers.
It allows sellers to purchase merchandise tax-free and then legally resell to customers within the state, thus granting the opportunity to do business there.
Typically, these certificates apply to the sale of tangible goods, such as toys, equipment, tools, and supplies, the majority of which sellers purchase wholesale. When a customer purchases an item, you collect sales tax on it.
Most looking to sell merchandise will require a seller’s permit, also commonly referred to as a reseller permit. Note that this applies not to those who offer services such as consulting or accounting, but instead to individuals or companies that intend to buy and sell goods.