How to Get a Resale Number

You should have a reseller's permit, also known as a resale number or sales tax identification number, if you have a business through which you are purchasing products for resale. A resale number will allow you to purchase items from wholesalers and distributors without paying sales tax. You are usually required to collect sales tax when you sell the item to buyers within your state, depending on the location of your business and of your customers. That sales tax is paid to the state Department of Revenue. The following guide will help you set up your resale number.

Steps

1
Determine if you need a resale permit.
You need a resale permit if you are selling goods and will be collecting sales tax.
Many wholesale and distribution companies will require a copy of your reseller's license or your Sales Tax ID number to make sure you are a legitimate business that will be reselling the products you purchase.

2
Establish your business entity.
Choose your business type (sole proprietorship, partnership, LLC, corporation) and submit the appropriate paperwork to the Secretary of the State or Register of Deeds in your locality. The type of business you choose and the state you live in will determine the paperwork that is required.
You may also need additional business licenses in your state. Find information on specific state business license requirements at the Small Business Administration website at http://www.sba.gov/content/search-business-licenses-and-permits.

3
Apply for an Employer Identification Number (EIN) through the IRS.
The EIN will be necessary to apply for your reseller's permit, and is used to identify your business for tax purposes.
An application for an EIN is available at the IRS website at http://www.irs.gov/businesses/small/article/0,,id=98350,00.html.

4
Apply for your reseller's license through your state Department of Revenue.
Most states will have an online application or form on their Department of Revenue website.
You should be ready to supply the following identifying information: Your Federal EIN or Social Security number (depending on the type of business entity), Business Name, Trade Name (doing business as), physical address, mailing address, phone number, email address and a responsible person's personal information (name, address, phone, SSN).
Additional information regarding your business and sales will usually be required, such as the date when sales will begin; whether sales will be retail, wholesale or both; a description of the business; the types of items and services that will be sold, and an estimate of the monthly sales tax that will be collected.
The information required on the application may vary by state.