It’s critical to understand whether a resale license is required if you want to launch a business in Kansas. Businesses that sell products and collect sales tax must have a resale license, often known as a sales tax permit. The widespread consensus in Kansas is that a resale license is required.
You should get a resale license if your company deals in the sale of tangible personal property. This comprises companies that deal in actual commodities including apparel, furniture, electronics, and other products. It is crucial to keep in mind that companies that offer services, including consulting or legal services, are exempt from the requirement for a resale license.
In Kansas, obtaining a resale license is an easy process. You can submit an application for a license by mail or online through the website of the Kansas Department of Revenue. It is advised that you have your federal tax ID number (EIN) and all relevant business information available before submitting your application.
Your resale license may arrive up to 10 business days after your application has been submitted. Reselling licenses are free, although there is a fee for late renewals. To avoid any fines, it’s crucial to renew your resale license annually.
In addition to ensuring that you are in conformity with state regulations, a resale license enables you to make tax-free purchases from wholesalers or manufacturers. This can help your company make more money and save money.
Businesses in Kansas are obliged to collect and send sales tax to the state, in addition to getting a resale license. Kansas’s current state sales tax rate is 6.5%, and some municipal authorities additionally impose a sales tax on top of that.
In conclusion, you must acquire a resale license if your company deals in the selling of tangible personal property in Kansas. A resale license can be obtained quickly and easily online or by mail. Remind yourself to renew your license each year and to collect and send the state your sales tax. You can concentrate on expanding your company and boosting your income by adhering to state legislation.