When you are starting or operating a business in New York, you will need to obtain a certificate of authority from the state tax department. You will need this certificate before you can obtain a wholesale license. There are two different ways you can go about getting your certificate of authority.
You could attempt to find the application form, fill it out correctly, and submit it to the tax department on your own. It can take at least 15 business days to get your certificate from the state, provided you did not make any errors or omissions on your application.
The second option is to apply for your certificate of authority online through FastFilings. Our online application process is fast, easy, and quick. In most cases, you will have your certificate in about two to three business days, and possibly sooner.
What is a wholesale license in New York?
A wholesale license, which is also called a resale certificate, resale permit, wholesale permit, wholesale certificate, reseller’s permit, or tax exemption certificate, allows businesses in New York to buy goods they intend to resell to their customers without paying sales tax on those items.
For instance, you sell novelty t-shirts in your shop in New York City to tourists. With a wholesale license, you do not pay sales tax when purchasing the t-shirts from your vendors and suppliers. Instead, you collect sales tax from your customers and submit the taxes you collect to the state tax department.
If you did not have a wholesale license, you would have to pay your vendors and suppliers sales tax and collect sales tax from your customers.
Who needs a New York resale certificate?
Any type of business in the state of New York that wants to buy goods to resell to others should have a resale certificate. This includes sole proprietorships, partnerships, LLCs (limited liability companies), and corporations.
Are there different types of wholesale certificates in New York?
Once a business has obtained its certificate of authority from the state, it can use a resale certificate to purchase goods from suppliers and vendors without paying sales tax. New York requires businesses to supply the seller with a copy of the wholesale certificate within 90 days of the purchase.
If the business fails to supply the certificate, then they must pay the seller sales tax. New York has several different types of resale certificates. Each one must be filled out correctly with the name of the business, the name of the seller, and other pertinent information.
New York allows businesses to use a blanket wholesale certificate when making regular purchases from the same vendors and suppliers. In addition, businesses can obtain blank copies of Form ST-120 electronically to fill out and use for each vendor and supplier.
What is the benefit of obtaining a wholesale license in New York?
Obtaining a New York resale certificate ensures businesses do not have to pay sales tax when buying goods they intend to resell to their customers. Plus, there are no fees or additional costs businesses have to pay for obtaining a resale certificate.
What’s the difference between a certificate of authority and a resale certificate?
To conduct business legally in New York, businesses require a certificate of authority, which is also called a seller’s permit, sales and use tax permit, business tax permit, sales tax permit, sales tax ID, or business tax number. The seller’s permit allows New York businesses to sell goods and services and requires them to collect sales tax from taxable goods and services.
A resale certificate is a separate form that businesses fill out and use when purchasing goods from their suppliers and vendors to avoid paying sales tax.
How can FastFilings help me get my certificate of authority in New York?
FastFilings makes the process of getting your New York certificate of authority easy and simple following these steps:
Step 1: Gather documents and information about your business.
When filling out the secure, online application, you will need to provide specific details about your business, including:
- Social Security Number or Federal Tax Identification Number
- Email Address
- Business Address/Business Location
- Personal References
- Supplier/Vendor Information
- Certificate of Authority Number
- Business Name or DBA Name
- Bank Account Information for Payment
Step 2: Complete and submit the online application form.
Using the documents and information about your business, complete the online application. Once submitted, we use the information to fill out the official New York Certificate of Authority application form and submit it to the state tax department electronically on your behalf.
Step 3: Receive your certificate of authority.
We will send you a confirmation once we have submitted your application. Once we receive your certificate of authority, we will send it to you electronically. Once you have it, you can use it to go online and fill out your wholesale license forms to provide your supplies and vendors.
For further information about obtaining your New York certificate of authority and wholesale license, please feel free to contact FastFilings directly. If you are ready to get started, simply complete our secure online application form today!