One of the few states in the US, Connecticut, charges sales tax on merchandise sold for resale whether the vendor has a physical presence there or not. This implies that regardless of where your firm is located, you are required by law to collect sales tax on any goods you sell to Connecticut clients. However, if you are a reseller who buys goods to resell, you might be able to avoid paying sales tax on those goods by providing your source with a resale certificate.
So, does Connecticut accept resale certificates from other states? Yes, provided that certain conditions are met, Connecticut will accept out-of-state sales certificates. The following details must be on a resale certificate, per the Connecticut Department of Revenue Services:
– The buyer’s name and address
– The buyer’s sales tax permit number or registration number
– A declaration that the item is solely being bought for resale
– The kind of item being bought (such as tangible personal property, digital goods, etc.)
Let’s move on to the questions that are connected now. If you’re wondering how to launch an online store in Connecticut, the procedure is very simple. You must first select a company name and register it with the Secretary of State of Connecticut. The Connecticut Department of Revenue Services must issue you a sales tax permit before you can charge sales tax on goods supplied to residents of the state. Moreover, depending on the nature of your business (for instance, if you’re selling food or alcohol, you’ll need a separate licence), you could need to acquire additional licenses or permits.
The answer to the question of whether CT needs a business license is both yes and no. Although broad business licenses are not necessary in Connecticut, many different kinds of enterprises must still get specific licenses or permits. For instance, the Department of Public Health will need you to apply for a food service establishment permit if you plan to open a restaurant. Similar to this, the Office of Early Childhood will need you to apply for a license before opening a daycare facility.
The Connecticut Department of Consumer Protection will issue you a vending machine operator’s license if you want to start a vending machine business in the state. You must pass a background investigation in order to obtain this license, as well as fulfill a few other conditions, such possessing a Connecticut physical address.
Last but not least, the answer to the question of whether online firms need to be registered in Connecticut is yes. The Department of Revenue Services will issue you a sales tax permit if you are selling goods to Connecticut residents. Additionally, depending on the type of your business and where you are located in Connecticut, you might need to register your company with the Secretary of State as well as get any additional required licenses or permits.
In conclusion, provided that certain standards are met, Connecticut will accept out-of-state resale certificates. Depending on the nature of your business, starting an online store in Connecticut requires acquiring a sales tax permit as well as perhaps additional licenses or permissions. Connecticut does not need a basic business license, but many different kinds of businesses need to have certain licenses or permits. A vending machine operator’s license is required if you want to start a vending machine business in Connecticut. And lastly, online stores who sell goods to Connecticut residents are required to apply for a sales tax authorization and then register with the Secretary of State.