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What's the difference between a "Resale license" and a State Tax ID number?
I live in Texas and am launching an official eBay business and am trying to get my head around all of the licenses, permits, and ID numbers I have to have.
I've applied for and EIN from www.irs.gov and a Sales Tax ID number with my state. I have the EIN and am waiting to receive the sales tax ID number.
My question is, is my state tax ID number what they refer to as a "resale license"? If not, where do I get a resale license in Texas? Do I need a business permit to operate? I don't have a storefront; I just list auctions from my apartment and will store my inventory in a spare closet. Any help would be greatly appreciated.
2 Answers
- 1 decade agoFavorite Answer
Your Sales and Use tax number is utilitized for what you are calling a resale license. The form is really called a Sales and Use Tax Resale Certificate. You issue these to the vendor for goods purchased for resale- this allows the vendor to not charge sales tax to your company. you can go to the Texas website and download the form. Business Licenses are obtained from local (city) government and you do need one.
- Anonymous5 years ago
Well, those answers are close. They are all correct in the matter of a Federal ID Number. However, they are wrong in the matter of a Sales Tax Resale Number. NO...it is not used as a number to identify you/corporation to the state to collect sales tax. Many people think that having a Sales Tax number is the same as a having a Sales Tax Resale Number....but, it isn't. A Resale Number means that your are buying it for resale only and you don't have to pay sales tax...but you will have to collect it when you sell the item. I hope this helps.
