How to Get a Wholesale License in Texas
Businesses in Texas need to obtain a sales and use tax permit before they can conduct business. A Texas sales tax permit requires you to collect sales tax on taxable goods and services. A sales and use tax permit is also known by several different names, including:
- Wholesale License
- Wholesale Permit
- Resale Certificate
- Resale Permit
- Tax License
- Seller’s Permit
- Seller’s License
Who needs a Texas wholesale license?
The Texas Comptroller’s Office requires businesses engaged in the sale of taxable goods or taxable services to obtain a Texas tax license whether they are a small business or a major corporation. You are required to charge sales tax and collect sales tax from your customers. Your business is then responsible for paying sales tax to the Texas Comptroller’s Office.
To determine whether your business requires a Texas sales tax permit, ask yourself the following:
- Do you operate a business from a physical location in Texas?
- Do you have salespeople who operate in Texas and sell taxable products or services?
- Do you receive income from rental properties in Texas?
- Do you conduct business in the state through other avenues like trade shows or concerts?
- Do you sell more than two items online in Texas or ship more than two items to customers in Texas within a 12-month period?
- Do you sell digital products to customers in Texas?
If you answered yes to one or more of these business activities, your business needs a Texas seller’s license.
Is there a difference between a wholesale license and a sales and use tax permit?
Texas is among a handful of states that do not require you to obtain a separate wholesale license and seller’s permit. Essentially, you will need first to obtain your Texas sales tax permit.
After you receive that, you use your sales tax identification number on the tax-exempt wholesale license form when purchasing goods or services at wholesale to avoid paying sales tax. The form will need to be completed for each vendor or supplier you use when purchasing items at wholesale to resell at your business.
How do I get a Texas wholesale license?
There are specific steps to follow to obtain your sales and use tax permit in Texas, as follows:
Step 1: Decide on a business structure.
The first thing you need to decide is the structure of your business. Do you want to establish it as a sole proprietorship, partnership, LLC (limited liability company), or corporation? How you establish the business determines what type of document you will need to provide when filing your application for your seller’s permit.
Step 2: Determine the name of your business.
You will need to come up with what you want to call your business. Most businesses operate as DBAs (Doing Business As). This means the business is registered in one name and conducts business—i.e., sales transactions—in another name.
For example, you want to open a coffee shop and call it Sally Smith’s Roasters. Since you are using your first and last name, you would not need a DBA. However, if you want to call it Sally’s Roasters, you need to use a DBA.
Step 3: Register your business.
Before you can apply for a wholesale license, you need to register your business. You will need to apply for an EIN (Employer Identification Number) with the IRS and obtain your business license from the state of Texas.
Step 4: Fill out your application for your Texas sales tax permit.
In Texas, you have two options to obtain your seller’s permit—you can apply directly to the state or use the expedited processing available from FastFilings. Most businesses want their seller’s permit to open their doors ASAP, so they use our service.
One of the primary benefits of using FastFilings is the process is simple, easy, and straightforward. If you go the DIY route, you have to know what forms to fill out, where to supply the required information, and so on. Then it can take weeks to get your permit. Not to mention, if you make a mistake, your application is rejected, and you have to start the process all over again.
FastFilings requires three simple steps to get your seller’s permit.
Step 1: Gather your business information and documentation.
You will need your social security number, employee identification number, email address, business name or DBA name, personal references, supplier and vendor information, and bank account information.
Step 2: Complete our secure online application form.
Fill out our secure online application and provide us with the required information. We will review your application and, if necessary, contact you for more information.
Step 3: Wait for your sales and use tax permit.
We fill out the official application and submit it to the Texas Comptroller’s Office. Typically, we will have your application approved, and an electronic copy of your permit sent to you in about 24 to 48 hours.
As you can see, it cannot get any easier obtaining your Texas sales tax permit using FastFilings. To obtain your Texas sales permit number, apply online today! If you require further assistance or have questions, please feel free to contact us using our online form.