Suppose you want to start a business in Louisiana where you intend to sell tangible goods to your customers. Then you will want to apply for a resale certificate in Louisiana to benefit your new Louisiana small business.
What Is a Louisiana Resale Certificate?
When starting a business in Louisiana where you intend to sell products to your customers, you do not want to have to pay sales taxes to your suppliers and vendors for your inventory items. To do this, you must present a copy of your Louisiana resale certificate to each of your suppliers and vendors.
How Are Sales Taxes Collected?
Sales taxes will still be paid to the Louisiana Department of Revenue from the sales taxes you collect from your customers. You will also pay sales taxes to your vendors and suppliers for any non-inventory goods, such as office supplies, cash register receipt paper, or any other item used for the day-to-day operations of your business.
Who Needs a Louisiana Resale Certificate?
Any business that intends to purchase goods and resell them at retail needs to get a Louisiana resale certificate. Without one, the business would have to pay sales taxes to their vendors and suppliers for their inventory items.
Fortunately, the state does allow businesses to deduct any sales taxes paid for inventory items. However, you do need to keep accurate records and receipts to claim the deduction.
In addition, Louisiana is one of ten states that require out-of-state businesses to obtain a Louisiana resale certificate when they wish to purchase goods from vendors and suppliers in Louisiana they intend to resell at retail. So, if you have an out-of-state business and your vendor is in Louisiana, you, too, will need a Louisiana resale certificate to obtain tax-exempt status.
Do Louisiana Resale Certificates Expire?
As long as the business remains active, its Louisiana resale certificate does not expire. The business must report regular sales activity and remit sales taxes to the Louisiana Department of Revenue at least once every 12 months. When they do, the resale certificate is automatically renewed.
Other Names for a Louisiana Resale Certificate
- Louisiana Resale License
- Louisiana Resale Permit
- Louisiana Sales Tax Exemption Certificate
- Louisiana Sales Tax Exemption Permit
- Louisiana Reseller’s Permit
- Louisiana Reseller’s License
- Louisiana Reseller’s Certificate
- Louisiana Wholesale Permit
- Louisiana Wholesale License
- Louisiana Wholesale Certificate
- Louisiana Exemption Certificate
- Louisiana Exemption Permit
Is a Louisiana Resale Certificate the Same as a Seller’s Permit?
Many people mistakenly assume that a Louisiana resale certificate and seller’s permit are the same things. However, they are two separate documents a small business in Louisiana needs. The seller’s permit is required for all Louisiana businesses to operate legally within the state. You may also know a seller’s permit by these other names:
- Sales Tax License
- Sales and Use Tax Permit
- Sales Tax ID Number
- Sales and Use Tax Certificate
- Sales Tax Permit
Does My Louisiana Small Business Have to Accept Resale Certificates?
Out of good faith, most businesses will honor other businesses’ resale certificates. However, you must verify the information on the tax-exempt certificate is filled out accurately and completely before accepting it by doing the following:
- Review the document and verify it is filled out completely. You can use your resale certificate as a comparison.
- Confirm the resale certificate is active and valid. You will need to visit the Louisiana Department of Revenue’s website and use their online validation verification.
- Verify the items being purchased tax-free are consistent with the buyer’s business and qualify for tax-exempt status.
- Keep a copy of the resale certificate on file at your business.
Can I Use My Louisiana Resale Certificate Out of State?
If you have vendors and suppliers located in other states, your Louisiana resale certificate will also provide tax-exempt status in most states. However, if your suppliers or vendors are in Alabama or Florida, you will need to apply for resale certificates in those states to obtain tax-exempt status.
How FastFilings Makes It Easy to Apply for a Resale Certificate in Louisiana
FastFilings makes it easy to apply for a resale certificate in Louisiana by having us help you obtain your Louisiana seller’s permit. When your sales tax license application is for starting a business in Louisiana that intends to sell tangible goods, your Louisiana resale certificate is automatically issued at the same time by the Louisiana Department of Revenue upon approval of your seller’s permit application.
Otherwise, you will need to apply for your resale certificate in a few simple steps:
- Fill out our secure online application form.
- Upload any required documentation.
- Remit payment information.
- We electronically file your Louisiana resale certificate application with the Louisiana Department of Revenue.
- Receive your resale certificate as quickly as a few business days.
Get started online today, or please feel free to use our online contact form if you have further questions or require additional assistance.