How many resale certificates do I need?

Question

Hi EveryoneI am starting an INTERNET-ONLY home based business that sellsnutritional supplements. The business is incorporated and located inNorth Carolina. I will keep the products in Amazon fulfillment centerthat is located in Nevada. I will buy the products from wholesalersthat might be located anywhere in the US. People who buy my productsfrom my website can be resident of any state. I have some questionsrelated to this:Do I have to pay sales tax to every state or just the state of NorthCarolina?Do I have to get a resale certificate from every state or from thestate of NC only?is the there any place online where i can to apply for a resalecertificate from any state?ThanksDan

Paul Thomas, CPA · Accepted Answer

"danbudan"  wroteIt 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.

Stuart Bronstein · Answer

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

How many resale certificates do I need?

Join the Discussion

Didn't find your answer?