Verifying a Resale Certificate in Iowa: A Guide

You may be able to utilize a resale certificate to avoid paying sales tax on goods you sell as a retailer in Iowa if those goods or services are subject to state sales tax. However, in order to avoid being held responsible for any unpaid taxes, it is crucial to confirm the legitimacy of any resale certificate that a customer presents to you. Here’s how to check an Iowa resale certificate:

1. Verify the Certificate Number: The Iowa Department of Revenue issues resale certificates, each of which has a special certificate number. A resale certificate’s validity can be confirmed by cross-referencing the certificate number with the department’s online database. It is invalid if the certificate number cannot be located in the database or if the certificate has expired.

2. Check the Business Information: The name and address of the company that granted the resale certificate should be listed on the document. On the website of the Iowa Secretary of State, where you may look for registered business companies, you can confirm this information. It can be a counterfeit certificate if the business details on the resale certificate do not match those on the Secretary of State’s website.

3. Verify the Resale Certificate for Required Information: According to the Iowa Department of Revenue, a resale certificate must contain particular information, including the buyer’s name and address, the date of purchase, and a description of the good or service being acquired. Verify that the certificate contains all of the necessary details.

4. Maintain Records: It’s crucial to keep copies of all resale certificates and complete records of any sales that were completed using resale certificates. In the event that the Iowa Department of Revenue conducts an audit, this will help to safeguard you.

The Iowa Secretary of State’s website allows you to search for corporate entities if you need to find out who owns a company in Iowa. You can use the internet to look up companies by name, registered agent, or filing number. For a charge, you can also get a business entity report that offers more thorough details about a company, including its owners and officials.

You must submit Articles of Organization to the Iowa Secretary of State’s office in order to obtain an organization certificate there. The name of the LLC, the name and address of the registered agent, the purpose of the LLC, and the names and addresses of the members must all be listed in the Articles of Organization. The Articles of Organization are filed for a fee.

It’s critical to take an LLC’s liability protection into account when choosing between it and a sole proprietorship. An LLC offers its members limited liability protection, which shields their private assets from claims and debts made against the company. A sole proprietorship, on the other hand, offers no liability protection.

Unless it is dissolved by its members or the state, an LLC in Iowa is legal indefinitely. To maintain their legal standing, LLCs must submit a yearly report and pay a fee to the state. The state has the right to dissolve the LLC administratively if the annual report is not submitted on time or the fee is not paid.