by 
The Curious Bag
-
Most states require the procurement of a Sales Tax ID number anytime a business collects sales tax for a purchase. Even home-based businesses may be required to obtain various licenses and forms; check with the Small Business Administration for the requirements of your specific business.
Who Needs a Sales Tax ID
Both brick and mortar retailers and online retailers, including those who sell items on auction websites, are required to collect sales tax. Other types of businesses required to have sales tax numbers include those who sell services, lease property or those who sell other wholesale items.
Requirements
Unless your business is a sole proprietorship, you may be required to obtain an Employer Identification Number (EIN) prior to applying for a Sales Tax ID number.
How to Apply
Obtaining a sales tax number is relatively simple and easy. Contact your state taxing authority website for details and associated costs.
Benefits
One of the benefits of obtaining a business license is the ability to purchase items for resale without having to pay sales tax. Most legitimate resale companies require a sales tax number before selling product to you at wholesale prices.
Other Names
Depending on your home state, the Sales Tax ID number may go by other names, such as a resale certificate, resale permit or resale number.
Source:
RELATED QUESTIONS
Copyright 2023, Wired Ivy, LLC