When starting a business in North Carolina, you have two options for obtaining a wholesale license. You can apply directly to the North Carolina Department of Revenue, or you can save time by using the expedited online application services available from FastFilings.
What is a North Carolina wholesale license?
In North Carolina, a wholesale license is the same thing as a seller’s permit, resale certificate, tax exemption certificate, wholesale permit, wholesale certificate, reseller’s permit, resale permit, sales and use tax permit, sales tax ID, sales tax permit, or business tax registration number.
With a wholesale permit, businesses can purchase goods at wholesale prices that they intend to resell and not have to pay sales tax on their purchases.
To illustrate, Sally is starting an arts and crafts supply business. She wants to purchase goods from various suppliers and vendors that she intends to sell in her store. With her NC wholesale license, she does not pay sales tax on goods she purchases to stock her store.
When Sally sells arts and crafts supplies to her customers, she collects the sales tax. She then submits the sales tax collected to the North Carolina Department of Revenue.
Without a wholesale certificate, Sally would have to pay sales tax on the goods she purchased to stock her store and still charge her customers sales tax.
What are the benefits of having a wholesale license in North Carolina?
The main benefit of obtaining a wholesale license in North Carolina is not having to pay sales tax on goods you intend to resell to your customers. It is worth pointing out that businesses still have to pay sales tax on cleaning supplies, office supplies, various services, and other taxable business operating expenses.
What’s the difference between a seller’s permit and a wholesale license?
Unlike certain other states, where businesses must obtain separate licenses and permits, businesses in North Carolina just need to obtain a seller’s permit. Their seller’s permit includes their wholesale certificate. As such, there is no difference between the two in North Carolina.
You will use your seller’s permit to collect sales tax from your customers and provide a copy of the wholesale certificate to your suppliers and vendors to avoid paying sales tax to them for goods you resell.
Please note that small businesses, limited liability companies (LLCs), sole proprietors, partnerships, and corporations need to obtain a state tax ID number and a federal tax ID number (employer identification number). You can file for these when you register your business or DBA with the secretary of state.
Who needs a wholesale license in North Carolina?
Every business in the state of North Carolina needs a wholesale license because it is part of the seller’s permit. Even if the business does not need tax-exempt status for purchasing goods, they will still receive a wholesale license with their seller’s permit.
Since seller’s permits and wholesale certificates do not expire in North Carolina, having both ensure that, as a business’s needs change, they will already have their wholesale license should they want to purchase goods for resale and not worry about paying sales tax.
How to Get a North Carolina Wholesale License Using FastFilings
Obtaining a North Carolina wholesale license is quick and easy when you get assistance from FastFilings using these steps:
Step 1: Gather your business documentation and information.
You will need to have all important information available when filling out your online application. You will need information such as your:
- Business Name or DBA (Doing Business As)
- Business Registration License
- Email Address
- Social Security Number or Federal Tax ID Number
- Vendor/Supplier Information
- Personal References
- Bank Account Information for Payment
Step 2: Complete the online application form.
Using your business documentation and information, complete the secure online form. Using the information you provide, we will complete the official North Carolina seller’s permit and wholesale license application and submit it directly to the Department of Revenue on your behalf.
We will contact you to let you know what information we require if we need any additional information.
Step 3: Wait to receive your NC seller’s permit.
We will notify you once we have submitted your NC seller’s permit application to the state. Once we receive notification your application has been processed by the state of North Carolina, we will send you the seller’s permit and wholesale license. Usually, the entire process takes between 24 and 48 hours, sometimes less.
Why use FastFiling to get my North Carolina seller’s permit?
North Carolina has several different tax IDs that can be rather confusing and make things complicated. We take the guesswork out of knowing what application form to submit to obtain your seller’s permit and wholesale license in North Carolina.
Our service is also faster than submitting the application on your own. Since we deal directly with the state, our processing times are much faster. Furthermore, we guarantee your application is completed correctly and accurately, so there are no surprises or unexpected delays.
For further information about obtaining your seller’s permit and wholesale license in North Carolina, please feel free to contact FastFilings directly. If you are ready to get started, simply complete our secure online application form today!