A firm can receive an Illinois resale certificate from the Illinois Department of Revenue, which enables them to buy products for resale without having to pay sales tax. The certificate can be renewed as often as necessary and is good for four years from the date of issuance. The certificate is signed by the company owner or an authorized representative and includes the company’s name, address, and tax identification number.
In Illinois, obtaining a resale certificate is free of charge. To collect and submit sales tax, the company must, however, show that they are registered with the Illinois Department of Revenue. This requires that the company already possess a sales tax permit, which does come with a charge. Illinois presently charges $20 for a standard retail sales tax permit and $75 for a specialty retail sales tax permit. How Do I Obtain My Illinois Wholesale License?
A company must first sign up with the Illinois Department of Revenue to register to collect and remit sales tax before applying for a wholesale license in Illinois. As noted above, an application must be filled out and the necessary price paid. The Illinois Department of Financial and Professional Regulation will accept applications for a wholesale license once the company has registered to collect sales tax. In addition to information concerning the goods that will be sold wholesale, the application also asks for details about the firm, such as its name, address, and tax identification number.
The amount of time it takes for a firm to submit the necessary paperwork and finish the application procedure in Illinois determines how quickly a resale certificate is granted. A resale certificate is typically obtained between 2-4 weeks after the application has been submitted. The procedure can take longer, though, if the application contains any problems or faults.
In conclusion, getting a resale certificate is crucial if you run a business in Illinois that sells products for resale in order to avoid paying sales tax on such products. A resale certificate is obtained by first registering to collect and remit sales tax with the Illinois Department of Revenue and then applying for the certificate itself. A sales tax permit must be purchased; however, a resale certificate can be obtained for free. In order to ensure that the certificate is obtained in a timely way, it is crucial to adhere to the correct processes and deadlines.
Resale certificates from other states are not recognized in Illinois. An Illinois resale certificate is required if you buy items to sell in Illinois.