I am a corporation, I have a federal tax id, I want to resell products, do I need a resale license?
Posted on August 30, 2008 by admin
rikdi2 asked:
what is the difference between a federal id number, a resale license/number and a business license?
what is the difference between a federal id number, a resale license/number and a business license?
Its all just Government red tape
And amke work for some stooge
look @ for a great product to resell or buy the patent for it @ and make and sell it yourself
If you have a state sales tax permit, you can buy things tax exempt for resale.
This is a sales tax issue and, as such, a state issue. It has nothing to do with your federal ID number. Go to your state’s department of revenue website and apply.
he purpose of a “resale license”, as you call it, is two fold. First it allows you to purchase items from wholesalers or retailers and avoid paying sales tax on the purchase. Secondly it is used by the state as a means of reporting your sales and the sales tax that you should be collecting. But for the second you would have no way to submit sales tax collected from your customers. The “federal ID number” also serves a number of purposes. The two most common are, first to identify the business and secondly as a means to report employee taxes (SS & Medicare) if you have employees. You could not operate a business as a corporation and sell products to the publick without both.