When starting a small business in Rhode Island, your business needs specific permits, licenses, and certificates to operate legally. All businesses in Rhode Island must obtain a business license and sales tax permit. In addition, businesses have the option to obtain a Rhode Island Resale Certificate.
What Is a Rhode Island Resale Certificate?
A Rhode Island resale certificate is a certificate that allows businesses to purchase goods they intend to resell at retail and not pay state sales taxes. The tax exemption can only be applied to goods you intend to resell.
The exemption does not apply to cleaning supplies, business supplies, and other such items you require for the day-to-day operations of your Rhode Island business.
A resale certificate can also be called:
- Reseller Permit
- Wholesale License
- Tax-Exempt Certificate
- Resale License
What Can You Do with a Resale Certificate?
You are allowed to make purchases from other businesses, vendors, and suppliers and not pay state sales taxes in Rhode Island. However, while most businesses will honor your Rhode Island resale certificate, they are not required to do so.
Some businesses may still decide to charge you sales taxes even on items you intend to resell. Should this occur, you need to keep accurate records and receipts showing you paid the sales taxes. Then, when you submit your payment to the state of sales taxes collected, you are allowed to deduct any amounts you paid to other businesses for your resale items.
Is a Rhode Island Resale Certificate Good in Other States?
- Washington D.C.
If you wish to purchase goods for resale in these states, then you must also obtain a wholesale license for that state. For example, you found a vendor in Florida that offers better wholesale prices on the goods you resell. Therefore, to waive paying sales taxes, you would need to obtain a Florida resale certificate.
Fortunately, the process to obtain an out-of-state wholesale certificate is just as easy as getting your Rhode Island resale certificate.
Is There a Rhode Island Resale Certificate Expiration Date?
All Rhode Island resale certificates expire four years from the date of their issue. However, before your Rhode Island resale certificate expiration date, you can reapply for a new wholesale license to be issued for another four-year period.
How FastFilings Can Help You Obtain a Rhode Island Resale Certificate
FastFilings makes it easy to apply for your Rhode Island resale certificate in a few simple steps:
Step 1: Fill out our secure online application form.
Step 2: Upload any necessary documentation.
Step 3: Submit payment for your resale certificate.
Step 4: We review your application for accuracy before electronically filing it with the state.
Step 5: Sit back and relax.
We will notify you when your wholesale license has been issued and send you an electronic copy so you can start using it right away—often within a few business days of submitting your application.
We can also help you obtain out-of-state wholesale licenses when you need one to purchase goods for resale in states that do not honor your Rhode Island resale certificate. Additionally, we can assist you with renewing a Rhode Island resale certificate that will expire.
Apply online at FastFilings to get your resale certificate today! If you have further questions or require additional assistance, please feel free to fill out our online contact form.