I’m planning to resell clothing items in California. What’s the process to get a resale certificate there?
Answer by: Abdullah Al Naim
5 months ago
I’m planning to resell clothing items in California. What’s the process to get a resale certificate there?
Obtaining a resale certificate varies by state, as each has its own requirements and processes. A resale certificate allows businesses to purchase goods for resale without paying sales tax at the time of purchase. Here\’s an example of how the process works in **California**, along with general guidance for other states.
In California, you must register with the California Department of Tax and Fee Administration (CDTFA) to obtain a seller’s permit.
Once registered, your seller’s permit number doubles as your resale certificate when making tax-exempt purchases.
Present your seller’s permit or resale certificate to suppliers when purchasing inventory for resale.
Register for a sales tax permit through the New York State Department of Taxation and Finance. Use the New York resale certificate (Form ST-120) for tax-free purchases.
Learn more: New York Resale Certificate for U.S. Business
Most states require businesses to register with their tax authority and provide a sales tax permit or similar identification to obtain a resale certificate. States like Florida and Maryland may have additional steps or fees involved.
Navigating different state requirements can be challenging, especially if your business operates in multiple states. Business Globalizer simplifies the process, ensuring you obtain your resale certificate quickly and accurately.
With Business Globalizer, managing resale certificates across states becomes effortless, helping your business save time and money while ensuring compliance.
