A resale license, also known as a Certificate of Authority, is required if you want to launch a business in New Jersey that involves purchasing and reselling goods. Due to the fact that you will be reselling the items to clients who will ultimately be responsible for paying the tax, this license enables you to buy goods from wholesalers and manufacturers without having to pay sales tax.
1. Determine whether you require a resale license
Not all businesses require a resale license, therefore it’s critical to ascertain whether yours does. You must apply for a Sales Tax ID number, which is distinct from a resale license, if you intend to sell goods to end users. However, you will want a resale license if you intend to purchase things to resell.
2. File a business registration with the state of New Jersey.
You need to register your business with the state of New Jersey before requesting a resale license. By submitting a Business Registration Application to the New Jersey Division of Revenue, you can accomplish this. You’ll get a Business Registration Certificate once your company has been registered.
3. Apply for a resale license
Once your company is registered, you can submit an application to the New Jersey Division of Taxation for a resale license. You can submit a paper application or one online through the Division’s website. Basic information about your company, like your business name, address, and tax ID number, will be requested in the application.
4. Receive your authority certificate You will obtain your Certificate of Authority when your application has been approved, which enables you to buy products for resale without having to pay sales tax. This certificate must be prominently displayed at your place of business. What is a New Jersey Certificate of Authority? A NJ Certificate of Authority, commonly referred to as a resale license, is a legal document that enables companies to purchase products from manufacturers and distributors without having to pay sales tax. The company then resells those items to clients who will ultimately be responsible for paying the tax. It’s crucial to understand that a Certificate of Authority does not preclude a company from having to collect sales tax on merchandise final sales.
What is the process for obtaining a copy of my New Jersey Certificate of Authority? You can ask for a duplicate of your Certificate of Authority from the New Jersey Division of Taxation if you need one. Calling their customer service line or making a written request are both acceptable methods of doing this. Your tax ID number and other pertinent business information should be at the ready. Which of the following must be completed in order to receive a Certificate of Authority? You must have a legitimate tax ID number and a state-registered firm in order to receive a Certificate of Authority in New Jersey. Additionally, you must include basic information about your company, such its name, address, and contact details.
You must submit a Certificate of Incorporation to the New Jersey Division of Revenue and Enterprise Services in order to get articles of incorporation in NJ. You can submit the Certificate of Incorporation by mail or online through the New Jersey Business Gateway Services website. The form asks for details including the corporation’s name, its mission, the amount and kind of shares of stock, and the registered agent’s name and address. You will be provided with a stamped copy as proof of incorporation after the form has been examined and approved.
In New Jersey, selling online does require a business license or resale license. Businesses that intend to purchase items for resale must obtain a resale license, whereas any firm functioning in the state needs a business license. To prevent future legal problems, it is crucial to obtain the proper license.