There are two different ways to obtain a wholesale license in New Jersey. You can apply directly to the state of New Jersey Division of Taxation, or you can use expedited services by ordering online through FastFilings.
What is a wholesale license?
A wholesale license is also known as a resale certificate, tax exemption certificate, reseller’s permit, resale permit, or wholesale certificate. A NJ wholesale license allows businesses to buy their goods at wholesale prices they intend to sell at resale without paying sales tax on them.
For example, Tom wants to buy $1,000 worth of widgets that he plans on selling at his business in New Jersey. Without a wholesale license, Tom would have to pay New Jersey sales tax on the widgets. With a resale certificate, Tom pays $1,000 for the widgets and doesn’t have to pay sales tax.
When Tom sells the widgets to his customers, he collects sales tax and submits it to the state of NJ Division of Taxation.
Who needs a wholesale license in New Jersey?
Any business that intends to resell goods purchased at wholesale prices needs a wholesale license, including limited liability companies (LLCs), sole proprietorships, partnerships, and corporations.
What are the benefits of having a wholesale license in New Jersey?
The primary benefit of obtaining a wholesale license for your New Jersey business is you can avoid paying sales tax on the goods you intend to resell. It is worth noting that you have to pay sales tax on office supplies, maintenance services, and other such purchases considered business operating expenses.
What’s the difference between a NJ seller’s permit and a wholesale license?
A NJ seller’s permit, also known as NJ sales and use tax permit, sales tax ID, business tax registration number, business permit, or sales tax permit, is the permit that allows NJ businesses to sell goods and services and collect sales tax from taxable goods and services.
The seller’s permit should not be confused with a federal tax ID number. There are also two different things. A federal tax ID number is similar to a social security number but used for business purposes. The ID number is what businesses use when filing their federal tax returns.
How do you get a wholesale license for New Jersey using FastFilings?
Getting your wholesale license for New Jersey is not difficult when you get help from FastFilings and follow these steps:
Step 1: Gather your documentation and business information.
You will need to have all important information available when filling out your online application. You will need information such as your:
- Federal Tax ID Number or Social Security Number
- Business Tax Registration Number
- Business Name or DBA (Doing Business As)
- Business License
- Email Address
- Personal References
- Supplier Information
- Bank Account Information for Payment
- Type of Business
Step 2: Fill out the online application form.
Using your documentation and business information, fill out the secure online form. Using the information you provide, we will fill out the official New Jersey wholesale license application and submit it directly to the state on your behalf.
If we need any additional information, we will contact you directly and let you know what documentation or business information we require.
Step 3: Wait for your wholesale license.
We will send you notification once we have finalized your application and submitted it to the state. We will send you the wholesale license as soon as your application is processed by the state of New Jersey. Typically, the entire process takes just a few days, sometimes less.
Can FastFilings Help Me Get My New Jersey Seller’s Permit?
Yes, we can help you obtain your NJ seller’s permit as well. When filling out your application for your New Jersey wholesale license, you can indicate that you also want us to file for your seller’s permit on your behalf. When you use our service to get both your wholesale license and seller’s permit, the processing time is still a few days or less.
For further information about obtaining your NJ seller’s permit or wholesale license, please feel free to contact FastFilings directly. If you are ready to get started, simply complete our secure online application form today!