When you operate a business in Arkansas that sells goods and products to customers, you could benefit by applying for and obtaining an Arkansas resale certificate. It does not matter whether you run a home-based business or an online-only business or have a brick-and-mortar store. You will definitely want a resale certificate.
What Is an Arkansas Resale Certificate?
An Arkansas resale certificate is also known by other names, including:
- Arkansas Wholesale Certificate
- Arkansas Wholesale License
- Arkansas Reseller’s Permit
- Arkansas Resale License
- Arkansas Sales Tax Exemption Certificate
No matter what you call it, this certificate allows your business to purchase goods and products that you intend to resell to your customers tax-free.
Who Needs an Arkansas Resale License?
Any business that resells items at retail needs an Arkansas resale license, including home-based and online-only businesses. While you can certainly operate your business without one, it makes things a bit more complicated.
For example, you buy and resale arts and crafts items. When you do not have a resale certificate, you must pay sales taxes to your vendors and suppliers. Then, when you sell the items to your customers, you must collect sales taxes from them, as well.
In this scenario, you can deduct the sales taxes you paid to your vendor and suppliers when submitting the collected sales taxes to the Arkansas Department of Revenue. However, you must keep meticulous records and receipts.
On the other hand, when your business has a resale certificate in Arkansas, you may not have to pay sales taxes to your vendors and suppliers. So while you still need to keep accurate records and receipts, submitting your collected sales taxes is much easier.
Are Vendors and Suppliers Required to Honor Resale Licenses?
Most vendors and supplies will honor your resale license. However, they are not required by the state to accept them. If they do not accept them, you would just keep the receipts and deduct the sales taxes you paid them when you submitted your collected sales taxes to the state.
Does My Business Have to Honor Resale Certificates?
That is entirely up to you. However, in most cases, you would want to honor another business’s resale certificate in Arkansas, as it can lead to repeat business and a long-term customer relationship.
Do Resale Certificates in Arkansas Expire?
There is no set expiration date on Arkansas resale certificates. However, if you have not used yours in over 12 months, you may need to renew it with the state. In addition, if there are changes to your business, such as a “doing-business-as” (DBA) name, you would want to update your wholesale certificate to reflect your current business name.
Can I Use My Resale Certificate Out of State?
Most other states will honor your resale certificate for items and goods you purchase for your inventory. However, there are currently ten states that do not, including California, Illinois, Florida, Louisiana, and Alabama.
So, if you order goods from those states and want tax-exempt status, you would need to obtain a resale certificate in those states. In some cases, this can also involve obtaining a seller’s certificate or sales and use tax certificate in those states as well.
How to Get a Resale Certificate in Arkansas from FastFilings
The most efficient and effective way to get a resale certificate in Arkansas is to use FastFilings. We have streamlined the application process to save you time by completing a few simple steps:
- Step 1: Fill out our secure online application form.
- Step 2: Upload any required documentation.
- Step 3: Submit your payment.
- Step 4: We file your application electronically with the state.
- Step 5: Sit back, relax, and get your Arkansas resale certificate electronically in one to two business days after it is accepted by the state.
If there are any issues with your application, we will contact you to resolve those issues before filing your resale certificate application with the state. Plus, you never have to guess what application form to fill out. Arkansas currently has three different sales-tax exempt resale certificate application forms!
In addition to assisting you with obtaining your resale certificate in Arkansas, we can also help you obtain your Arkansas seller’s permit, wholesale certificates in other states, and seller’s permits in other states.
Get started now by filling out our Arkansas resale certificate application today! If you have further questions or require additional assistance, do not hesitate to contact us using our online contact form.