How many resale certificates do I need?

- D
- danbudan
  
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posted
16 years ago

Sat, Feb 2, 2008 5:59 AM

Hi Everyone

I am starting an INTERNET-ONLY home based business that sells nutritional supplements. The business is incorporated and located in North Carolina. I will keep the products in Amazon fulfillment center that is located in Nevada. I will buy the products from wholesalers that might be located anywhere in the US. People who buy my products from my website can be resident of any state. I have some questions related to this:

Do I have to pay sales tax to every state or just the state of North Carolina? Do I have to get a resale certificate from every state or from the state of NC only? is the there any place online where i can to apply for a resale certificate from any state?

Thanks

Dan

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- Paul Thomas, CPA
  
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posted
16 years ago

Sat, Feb 2, 2008 3:05 PM

"danbudan" wrote

It sounds like you'll have nexus in NC and NV. So sales (and income) tax would be due to those states.

As far as I know, there's not a "one-stop" to register in any/all states and local jurisdictions.

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- Stuart Bronstein
  
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posted
16 years ago

Sat, Feb 2, 2008 4:42 PM

Right. Normally a company is only required to register/pay taxes in a location where they have some assets (store, warehouse, bank accounts, etc.) or personnel (including sales personnel but not necessarily independent sales representatives).

You need to be careful of one thing, though. Some states have agreements that people in their states will collect sales taxes for people in the other signatory states. OP should check the laws of both NC and Nevada to determine if either of them is a party to such a compact, and if so which other states are involved.

Stu