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How many resale certificates do I need?

 

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Subject Author Date
How many resale certificates do I need? danbudan 02-02-2008
Posted by danbudan on February 2, 2008, 12:59 am
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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
http://www.bargainmargin.com/

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Posted by Paul Thomas, CPA on February 2, 2008, 10:05 am
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> 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?




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.




--
Paul A. Thomas, CPA
Athens, Georgia

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

Posted by Stuart Bronstein on February 2, 2008, 11:42 am
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>> 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?
>
> 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.

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

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

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