To get a resale permit, register with the tax agency in each state where you have a sales tax obligation, usually through that state’s online portal, and you’ll receive a permit number that lets you collect sales tax from customers and buy inventory from suppliers tax-free. In most states the application is free, takes a single sitting if your paperwork is ready, and is approved within a few business days. The rest comes down to figuring out which states you need to register in and what each one asks for.
Do You Actually Need One
If you sell tangible goods or taxable services to end customers, you need a resale permit in the state where you operate. That holds whether you run a storefront, an online shop, a booth at a farmers market, or a seasonal pop-up. Wholesalers need one too, because the permit is what lets them buy stock tax-free from their own suppliers.
Five states don’t issue standard resale permits because they have no statewide sales tax: Alaska, Delaware, Montana, New Hampshire, and Oregon. If you operate exclusively in one of those, this process doesn’t apply, though some Alaska municipalities impose a local sales tax and have their own rules worth checking.
Online Sellers Crossing State Lines
Physical location isn’t the only trigger. Since the Supreme Court’s 2018 decision in South Dakota v. Wayfair, states can require out-of-state sellers to collect sales tax once they cross an economic activity threshold in the state, even with no physical presence there.1Supreme Court of the United States. South Dakota v. Wayfair, Inc. (No. 17-494) The most common threshold is $100,000 in annual sales into the state, used by roughly 40 of the 45 states with a sales tax. Some states add a transaction count as an alternative trigger, such as 200 or more separate sales. Cross either line and you need to register in that state and start collecting.
Temporary and Seasonal Sellers
Selling at a craft fair, holiday market, or fireworks stand for a few weeks still requires a permit. Most states offer a temporary seller’s permit covering a limited window, often 90 days or less at a single location. If you already hold a permanent permit in that state, you typically register for a sub-permit for each temporary location rather than applying separately. A short selling period doesn’t exempt anyone.
What to Have Ready Before You Apply
Every state’s form asks for roughly the same core information, and gathering it upfront is the single biggest thing you can do to keep the application moving:
- Legal business name, any DBA name, and your physical and mailing addresses
- Federal Employer Identification Number (EIN), or your Social Security Number if you’re a sole proprietor with no employees
- Entity type: sole proprietorship, partnership, LLC, or corporation
- Names, addresses, and Social Security Numbers for all owners, partners, or corporate officers
- A description of what you sell and how; some states ask for a North American Industry Classification System (NAICS) code
- The date you plan to begin making taxable sales
Missing a single field, especially an officer’s SSN, is the most common reason applications stall.
How to Submit the Application
Nearly every state with a sales tax offers online registration through its department of revenue or tax agency website, and online is almost always the fastest route. A few states still accept paper applications or in-person registration, but those take weeks instead of days.
The typical process: create an account on the state tax portal, fill out the application, upload any supporting documents, review, and submit. Some states approve applications instantly. Others take a few business days to verify your information.
Fees and Security Deposits
Registration is free in many states, but not all. Some charge a one-time application fee, and a handful require a security deposit or surety bond, particularly if you or a listed owner has a history of late tax payments. Deposits range from modest amounts to several hundred dollars depending on the state and your tax history, and they’re often refunded once you’ve shown a track record of timely filings. Budget for anywhere between $0 and a few hundred dollars, and confirm your state’s specifics before applying.
After You’re Approved
You’ll receive your permit number along with instructions for displaying the permit. Many states require you to post it in a visible location at your place of business. Online-only sellers may need to keep the number accessible for customers or suppliers who ask. The approval notice will also tell you your assigned filing frequency and how to log into the state’s online filing system.
If You Sell Into More Than One State
You need a permit in every state where you have a tax obligation. Registering individually in a dozen states is tedious, which is what the Streamlined Sales Tax Registration System was built to solve.
The Streamlined Sales Tax Governing Board runs a free portal that lets you sign up for sales tax permits in all 24 participating member states at once, or just the ones you need.2Streamlined Sales Tax Governing Board. Sales Tax Registration SSTRS Member states include most of the Midwest and a chunk of the Mountain and South-Central states, with Tennessee as an associate member.3Streamlined Sales Tax Governing Board. State Detail SSTRS registration itself is free, though individual states may charge their own fees if you’re legally required to register there.
For states outside the system, including large markets like California, Texas, New York, and Florida, you’ll register directly through each state’s tax agency. That’s where most of the administrative work piles up for multistate sellers.
Permit vs. Certificate: Don’t Confuse Them
A resale permit and a resale certificate are not the same thing, and the terms get mixed up constantly. The permit is the license your state issues that authorizes you to collect and remit sales tax. The certificate is a form you hand to a supplier when buying goods for resale, telling them not to charge you sales tax on that purchase. You can’t issue a valid resale certificate without first holding a permit, because the certificate requires your permit number on it. The permit is your credential; the certificate is how you prove it to a vendor.
Using the certificate to buy things for personal use or internal business use is one of the fastest ways to trigger an audit. If you buy something tax-free and then keep it or use it in operations, you owe use tax on its cost.
What You’re Signing Up For
Getting the permit is the easy part. Staying compliant is where businesses trip up.
Collecting and Filing
You charge the correct sales tax rate on every taxable sale and remit the collected tax to the state on the schedule it assigns you: monthly, quarterly, or annual, with higher-volume sellers filing more often. File by the deadline even in periods when you had zero sales. Skipping a return because you owe nothing is a common and avoidable way to pick up penalties.
Record Keeping
Keep detailed records of every sale, the tax collected on each, and any tax-exempt sales supported by resale certificates from your buyers. Most states require you to hold these records for at least three to four years after filing the related return. If you’re audited and can’t document an exemption you allowed, you owe the tax yourself plus interest.
Use Tax on What You Pull From Inventory
When you buy inventory tax-free using your resale certificate and then take items for personal use or internal purposes, you owe use tax on the cost. This covers everyday situations: the office supply retailer who prints invoices on paper from stock, the coffee shop whose employees drink from cups bought for customers, the clothing store owner who takes home a jacket. The use tax rate matches the sales tax rate, and you report it on your regular sales tax return. Auditors look for this specifically, because it leaves an obvious paper trail of purchases without corresponding sales.
Penalties for Operating Without One
Selling without a permit when you’re required to have one exposes you to back taxes on everything you should have been collecting, plus interest and late-filing penalties. Late-filing penalties commonly run between 5% and 25% of the tax owed, with minimum flat fees even on small balances. The longer the gap, the worse it gets, because interest compounds on both the unpaid tax and the penalty.