A Sales Tax Permit is also one of the important items in the formation of your online business and getting legal. This is issued by the state where you reside and allows you to collect taxes on the sale of merchandise within your state.
It’s what most wholesalers will require in order to set up an account. Obviously, that’s going to be a critical step in the process so you won’t be able to skip this one. In fact, if a wholesaler doesn’t ask for your sales tax permit number, that’s a big ol’ red flag. an LLC for an online business
Legitimate wholesalers don’t want to be held liable for paying tax on their inventory. That’s your job. Having your sales tax permit is a bit of CYA for the wholesaler. If they don’t ask for it, you may be dealing with a middleman who is charging you a premium to access the wholesaler’s inventory. Steer clear of any wholesaler or manufacturer who suggests they don’t need the sales tax permit.
Nothing special about obtaining a sales tax permit provided you’ve filed the certificate for your business structure. Sole proprietorships will need their social security number. Partnerships, LLCs and Corporations will need their federal EIN (Employee Identification Number).
You will also need the following handy depending on in what state you’re filing:
A North American Industry Classification System (NAICS) number:
Don’t let this throw you for a loop; you just need to determine what NAICS number applies to your business type.