How to get a Resellers License: State by State
By Team KBB
Understanding Resellers Licenses
Resellers licenses can be a complex and confusing topic. If you are interested in selling any products or services, it is important to have a clear understanding of what reseller licenses are and how they work. Essentially, a reseller license allows an individual or business to purchase goods at wholesale prices and then sell them to customers at retail prices. However, there are many nuances to this process that can make it challenging to navigate without proper knowledge and guidance. In this blog post, we'll explore the ins and outs of reseller licenses, including their benefits, limitations, and potential pitfalls to help you make informed decisions about how to use them effectively in your own business endeavors.
The Benefits of Getting a Resellers License
If you're looking to start your business or expand an existing one, getting a reseller's license can be a game-changer. This can result in substantial profits for your business, as well as other benefits like increased flexibility and access to exclusive products. Whether you're selling physical products or digital services, having a reseller's license can give you a competitive edge in the market while helping you increase your revenue streams.
How Long Does It Take to Get a Resellers License
The time it takes to get a reseller's license can vary depending on the state or country you are in. In some states, the process can be completed within a few weeks, while in others it may take several months. The application process typically involves filling out forms, providing information about your business and paying any necessary fees. It's best to check with your local government agency responsible for issuing reselling licenses to find out specific requirements and processing times for your area.
State by State Requirements for Getting a Resellers License
State | Fee | Notes |
---|---|---|
Alabama | $0 | It’s free to register for an Alabama sales tax permit, but other business registration fees may apply. Licenses must be renewed annually effective January 1, 2021. |
Alaska | N/A | There’s no state sales tax in Alaska, but some jurisdictions impose a local sales tax and fees may apply. Remote sellers can register through the Alaska Remote Seller Sales Tax Commission. |
Arizona | $12 | The cost to register or renew an Arizona transaction privilege tax (TPT) license is currently $12 per business location. A separate city license fee may be required. TPT licenses are valid for one calendar year and must be renewed annually by January 1. |
Arkansas | $50 | The cost to register for an Arkansas sales tax permit is currently $50. |
California | $0 | It’s free to register for a California seller’s permit but a security deposit may be required to cover any unpaid taxes that may be owed if, at a later date, the business closes. The amount of the security will be determined at the time you apply. |
Colorado | $16 | The cost to register for a two-year Colorado sales tax license is currently $16 (prorated depending on the date of issuance), plus a one-time $50 deposit. The deposit is automatically refunded to the business after $50 in state sales tax has been remitted to the department. Additional fees may apply in self-collected jurisdictions. There’s no charge or deposit for a retailer’s use tax license. Licenses are valid for a two-year period and expire at the end of each odd-numbered year. All active Colorado sales tax licenses expire on December 31 of odd-numbered years (the next expiration date is December 31, 2023) and will need to be renewed. |
Connecticut | $100 | The cost to register for a Connecticut sales and use tax permit is currently $100. The permit expires every two years and is automatically renewed and mailed to you at no cost by the Connecticut Department of Revenue Services, as long as your account is active and in good standing. |
Delaware | N/A | There’s no state sales tax in Delaware. Other registration requirements may apply. |
Florida | $0 | It’s free to register as a Florida business. |
Georgia | $0 | It’s free to register for a Georgia sales and use tax number. There’s no need to renew it because it remains in effect as long as the business entity exists with no change in ownership or structure. |
Hawaii | $20 | The cost to register for a Hawaii general excise tax (GET) license is currently $20. |
Idaho | $0 | It’s free to obtain a sales tax permit in Idaho. |
Illinois | $0 | There’s no fee to register a business in Illinois, but there are license fees for some businesses with tax responsibilities. |
Indiana | $25 | The cost to register for an Indiana Registered Retail Merchant Certificate (RRMC) is $25. It’s valid for two years and updates automatically (for businesses in good standing) with no additional charge for renewal. If a business does not pay its tax liability, the RRMC will expire. |
Iowa | $0 | It’s free to register for an Iowa sales tax permit. |
Kansas | $0 | It’s free to register as a business in Kansas. |
Kentucky | $0 | It’s free to register for a Kentucky sales and use tax permit. |
Louisiana | $0 | It’s free to register for a Louisiana sales tax certificate. However, local governments may impose additional requirements and fees. |
Maine | $0 | It’s free to register for a Maine retailer certificate. |
Maryland | $0 | It’s free to register for a Maryland sales and use tax license. |
Massachusetts | $0 | It’s free to register for a Massachusetts Sales and Use Tax Registration Certificate, which is required for each business location. |
Michigan | $0 | It’s free to register for a Michigan sales tax license. |
Minnesota | $0 | It’s free to register for a Tax ID Number in Minnesota. |
Mississippi | $0 | It’s free to register for a Mississippi sales tax permit or registration license, which doesn’t expire or require renewal provided the holder continues in the same business at the same location (a separate permit is required for each location). However, a business with no permanent place of business in the state may be required to post a Sales Tax Bond or Surety Tax Cash Bond. |
Missouri | Variable | It’s free to register for a Missouri sales tax license. However, a business making retail sales in Missouri must post a bond equal to two times the average monthly sales and use tax. |
Montana | N/A | There’s no state sales tax in Montana. Other registration requirements may apply. |
Nebraska | $0 | It’s free to register for a Nebraska sales tax permit. A separate permit is required for each business location unless you apply through the Streamlined Sales and Use Tax Agreement. |
Nevada | $15+ | The cost to register for a Nevada sales and use tax permit is currently $15 for each location. In addition, businesses must remit a security deposit as follows: Monthly filers must remit three times the estimated tax due per month; quarterly filers must remit twice the estimated average tax due per quarter; annual filers must remit four times the estimated tax due annually. If the calculated tax for a business is less than $1,000, no deposit is required. Businesses may apply for a security deposit waiver after three full years of perfect reporting. |
New Hampshire | N/A | There’s no state sales tax in New Hampshire. Other registration requirements may apply. |
New Jersey | $0 | It’s free to register for a New Jersey Certificate of Authority. |
New Mexico | $0 | It’s free to register for a New Mexico Business Tax Identification Number. |
New York | $0 | It’s free to register for a New York sales tax Certificate of Authority. |
North Dakota | $0 | It’s free to register for a North Dakota sales and use tax permit, and a permit remains active until the taxpayer cancels it. However, a bond may be required; taxpayers who file accurately and on time for two years may request a bond refund. |
Ohio | $0 or $25 | The cost for in-state vendors to register for an Ohio vendor’s license is currently $25, and a separate license is required for each fixed place of business. The license is free for out-of-state sellers who make taxable retail sales in the state. |
Oklahoma | $20 | The cost to register for an Oklahoma sales tax permit is currently $20, with additional locations costing $10 each. The license must be renewed every three years by the date the permit was issued. This video provides more details. |
Oregon | N/A | There’s no state sales tax in Oregon. Other registration requirements may apply; see the Oregon Department of Revenue. |
Pennsylvania | $0 | It’s free to register for a Pennsylvania sales tax license, which must be renewed every five years. |
Rhode Island | $10 | The cost to register for or renew a Rhode Island retail sales tax license is currently $10. A renewal fee is assessed each year. However, the fees to apply for or renew a sales tax permit have been eliminated for periods after July 1, 2022. |
South Carolina | $50 | The cost to register for a South Carolina retail license is currently $50. A separate retail license is required for each location. The license is valid for as long as the same retailer operates the business at that location (unless revoked by the Department of Revenue). Separate local business licenses may also be required. |
South Dakota | $0 | It’s free to register for a South Dakota sales tax license. |
Tennessee | $0 | It’s free to register for sales and use tax in Tennessee. However, most businesses also need a business license, which costs $15 and is issued from a county clerk’s office. |
Texas | $0 | It’s free to register for a Texas sales tax permit. However, businesses may be required to post a security bond. |
Utah | $0 | It’s free to register for a Utah sales and use tax license. |
Vermont | $0 | It’s free to register for a Vermont sales and use tax license. |
Virginia | $0 | It’s free to register for a Virginia sales tax certificate. |
Washington | Variable | The cost to obtain a business license in Washington varies from $0 to $90. |
West Virginia | $30 | For most businesses, the cost to register as a business in West Virginia is currently $30. Transient vendors must post a security deposit (bond, cash, certified check, or irrevocable letter of credit) in the amount of $500. |
Wisconsin | $20 | There's a $20 fee to obtain the first Wisconsin seller's permit. There's no charge for additional tax permits, and no charge for a consumer's use tax certificate. |
Wyoming | $60 | The cost to register for a Wyoming sales and use tax license is currently $60. |
SOURCE: https://www.avalara.com/blog/en/north-america/2019/03/sales-tax-permits-a-state-by-state-guide.html
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