How to Apply for a Resale Certificate in NY
If you are in the business of buying and selling goods in New York, obtaining a resale certificate is a crucial step. This certificate allows you to purchase goods from wholesalers and suppliers without paying sales tax, as you will be responsible for collecting and remitting the tax to the state when you sell the goods. In this article, we will guide you through the process of how to apply for a resale certificate in NY.
Step 1: Gather Required Information
Before you begin the application process, gather all the necessary information. This includes your business name, address, contact information, and the type of business you operate. You will also need to provide details about your business structure, such as whether it is a sole proprietorship, partnership, corporation, or limited liability company (LLC).
Step 2: Complete the Application Form
The New York State Department of Taxation and Finance provides an online application form for obtaining a resale certificate. You can access the form by visiting the department’s website. Fill out the form accurately and completely, ensuring that you provide all the required information.
Step 3: Pay the Application Fee
There is a non-refundable application fee of $50 for obtaining a resale certificate in NY. You can pay the fee online using a credit card or electronic check. Be sure to keep a copy of your payment receipt for your records.
Step 4: Submit the Application
Once you have completed the application form and paid the fee, submit it to the New York State Department of Taxation and Finance. You can submit the application online, by mail, or in person at a local tax office. If you submit the application online, you will receive an email confirmation with your certificate number. If you submit it by mail or in person, you will receive your certificate by mail within 7-10 business days.
Step 5: Keep Your Certificate Updated
After obtaining your resale certificate, it is essential to keep it updated. If there are any changes to your business, such as a change in address or business structure, you must notify the Department of Taxation and Finance within 30 days. Failure to do so may result in penalties and interest.
Step 6: Collect and Remit Sales Tax
Once you have your resale certificate, you can purchase goods from wholesalers and suppliers without paying sales tax. However, you are still responsible for collecting and remitting the tax to the state when you sell the goods. Be sure to keep accurate records of your sales and tax payments to avoid any issues with the state.
In conclusion, obtaining a resale certificate in NY is a straightforward process that can help your business save money on sales tax. By following these steps, you can ensure that your application is processed smoothly and efficiently. Remember to keep your certificate updated and stay compliant with state tax regulations to avoid any legal issues.
