If you want to sell physical things when you first open for business in Indiana, you must get a resale license, commonly known as a seller’s permit or sales tax permit. With the use of this license, you are able to buy goods from wholesalers without having to pay sales tax and then resale them for more money. But how much does an Indiana resale license cost?
The fee-free nature of Indiana’s resale license provides the answer. To get one, though, you must fulfill a certain conditions. Your company must first be registered with the Indiana Secretary of State. The filing cost is $22 and can be made either online or by mail. After that, you must contact the Indiana Department of Revenue (DOR) to submit an application for a sales tax permit. There is no cost for the permission, and you can apply for it online, via mail, or over the phone.
You must submit basic company information, including your company’s name, address, phone number, and federal employer identification number (EIN), in order to apply for a sales tax permit in Indiana. The kind of your company, including whether it is a sole proprietorship, partnership, corporation, or limited liability company, must also be included. You should also estimate your monthly sales and list the day you want to launch your business.
You can start making purchases from wholesale providers without paying sales tax once you have your sales tax permit. However, you must obtain sales tax from your clients and consistently send it to the Indiana DOR. Indiana has a 7% sales tax, which is made up of a 6% state tax and a 1% county tax. Your sales tax can be submitted and paid online, by mail, or in person at a DOR office. You might be wondering if you need a seller’s permit in Indiana if you intend to sell goods online. The state views online sales as being equivalent to those made in-person, so the answer is yes. Therefore, if your online clients are from Indiana, you must obtain a sales tax permit and collect sales tax from them. You might not be required to collect sales tax if your online sales are sporadic or small. For further information, visit the DOR page for Indiana.
Last but not least, you could be wondering if Indiana accepts out-of-state resale certificates if you’re a reseller based in another state but intend to conduct business there. Yes, provided that the certificate satisfies specified criteria. The certificate must specify that the goods are for resale, include the buyer and seller’s names and addresses, be valid in the state where it was issued, and detail the products being purchased. Remember that even if you have an out-of-state resale certificate, you still need to apply for a sales tax permit in Indiana.
In conclusion, Indiana does not charge for resale licenses, but you must register your company and request a sales tax authorization from the Indiana DOR. Additionally, you must obtain sales tax from your clients and consistently send it to the DOR. You must adhere to Indiana’s sales tax laws and regulations if you sell goods online or have an out-of-state resale certificate.
Yes, Indiana does charge sales tax for transactions made outside the state. A remote seller sales tax law was passed in Indiana in 2018 and mandates that out-of-state merchants who sell to clients in Indiana must collect and pay sales tax if they reach specific economic threshold conditions.
Unless the business’s status or methods of operation change, an Indiana sales tax exemption certificate is valid forever. To make sure the certificate is still correct and appropriate for the business’s present condition, it is advised to examine and update it on a regular basis.