Having a business in New York State that sells items subject to a sales tax will require you to possess a Certificate of Authority. Before you can get one, you’ll have to make sure you have certain documents and information on hand.
What Does a Certificate of Authority Allow Companies to Do?
Businesses that have successfully applied for a New York State Certificate of Authority are authorized to collect taxes on all their taxable sales. The Certificate of Authority also allows businesses to accept the majority of tax exemption certificates for the state of New York.
What Information You’ll Need to Complete the Application
The following information will be needed before you can complete the application form:
Type of Business Entity
Your business entity will be one of the following: sole proprietorship, general partnership, limited partnership, corporation, or limited liability company (LLC).
If you’re the only owner of your company, a sole proprietorship is the best choice. General partnerships have two or more owners who manage the business, and limited partnerships have both general and limited partners. Corporations are independent of your personal assets, and an LLC offers liability protection for your company.
Business Name and Contact Information
You’ll need a business name to get a certificate to do business in New York. Sole proprietors can use their own name or choose another name for their business. All other entities will require an entity name that isn’t your own name. Make sure you’ve conducted a search for your business name to make sure it isn’t taken by another business.
You’ll also need a federal employer ID number. If your business entity is anything other than a sole proprietorship, you will need the names, addresses, and business titles for each partner, as well as their ownership and profit distribution percentages.
Bank Account Information
Another piece of documentation you’ll need for your application regards your business bank account. You will need the account and routing number of the bank where your sales tax money will be deposited.
In addition to the above, you’ll need to have a date for when you will begin selling your taxable items or services or accepting or issuing exemption certificates in New York State.
Projected Monthly Sales
Forecasting your sales is required information when applying for a New York sales tax permit because the state needs to know approximately how much in taxable and non-taxable sales from you to expect.
Other Required Information
Completing the Certificate of Authority application will require providing your social security number and reason for applying. You’ll also have to choose a temporary or regular Certificate of Authority. The temporary option is for businesses that don’t expect to make taxable sales in the state for more than two consecutive sales tax quarters.
FastFilings helps business owners like you apply for a Certificate of Authority fast. You provide the information, and we fill out your application so all you have to do is submit it. Get started today.