# Resale certificate



## prodigy222 (Jan 26, 2014)

So where do i sign up for a resale certificate online for the state of rhode island. I live here and plan on selling here and online do i need a federal tax id or a state tax id or what??? can someone give me a specific link as to where i can buy it i don't wanna pay for something that won't work. i want it so i can sign up with websites that require you to give them your certificate number so you can buy. i want better prices and thats the only places that offer lower prices. thanks!!!!


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## tcrowder (Apr 27, 2006)

pretty simple search will get you started.

http://bit.ly/1j5utor


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## calhtech (Feb 4, 2012)

prodigy222 said:


> So where do i sign up for a resale certificate online for the state of rhode island. I live here and plan on selling here and online do i need a federal tax id or a state tax id or what??? can someone give me a specific link as to where i can buy it i don't wanna pay for something that won't work. i want it so i can sign up with websites that require you to give them your certificate number so you can buy. i want better prices and thats the only places that offer lower prices. thanks!!!!


*Per member request -Disclaimer: I am not an accountant, but I have operated a retail computer business since 1991. These are the steps that are required in the state I do business in, Mississippi.*

A GOOGLE search netted this.

https://www.ri.gov/taxation/BAR/

CalhTech>


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## prodigy222 (Jan 26, 2014)

Okay so i know how to sign up for one, whats this about quaterly payments? Am i going to get charged for taxes depending on how much i make? What if i only make like 3000 in gross sales al year long. Are they going to send them to me ? Im really confused i want the number so i have acess to wholesalers and lower prices


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## sandmanbjj (Oct 26, 2011)

Consult an accountant. It will save you headaches in the long run


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## prodigy222 (Jan 26, 2014)

an accountant?! Like Ive only made like $300 in profits like what..


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## royster13 (Aug 14, 2007)

prodigy222 said:


> Okay so i know how to sign up for one, whats this about quaterly payments? Am i going to get charged for taxes depending on how much i make? What if i only make like 3000 in gross sales al year long. Are they going to send them to me ? Im really confused i want the number so i have acess to wholesalers and lower prices


If you can not figure out the "easy" stuff like this, how are you going to deal with the "tough" stuff that comes along....Every state has all the information you.....All we have is our "spin" on it and if we are wrong, you are the one that suffers.....Best to go to the source.....


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## dvineci (Feb 25, 2011)

Get an Accountant. If you got to asked these questions after you have done reshearch, once again get an accountant.


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## calhtech (Feb 4, 2012)

prodigy222 said:


> Okay so i know how to sign up for one, whats this about quaterly payments? Am i going to get charged for taxes depending on how much i make? What if i only make like 3000 in gross sales al year long. Are they going to send them to me ? Im really confused i want the number so i have acess to wholesalers and lower prices


*Per member request -Disclaimer: I am not an accountant, but I have operated a retail computer business since 1991. These are the steps that are required in the state I do business in, Mississippi.*

Here is the deal, a RESALE certificate is what Wholesale Distributors want from you to sell to you at wholesale prices. A Resale certificate issued to you by the STATE you do business in, implies you intend to sell retail items and agree to send them the Sales Taxes you collect from those sales you make. Mine are paid monthly. Yours may be paid quarterly. You can't just get a RESALE CERT, without paying the state what you collect. Hope this is clear, cause there is a lot more to it than just applying for it. Distributors are aware of what it takes to startup a legitimate business and that's why they offer discounts to established businesses with the proper credentials. Hope this helps.

CalhTech>


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## prodigy222 (Jan 26, 2014)

Thanks a lot, one question would i have to pay the sales tax if i sold in another state? and say i never sold anything in the state of rhode island? would i pay anything?


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## Ripcord (Sep 2, 2006)

prodigy222 said:


> Thanks a lot, one question would i have to pay the sales tax if i sold in another state? and say i never sold anything in the state of rhode island? would i pay anything?


On your quarterly form it will direct you to categorize your income. Not all of it is subject to sales tax.

Normally, items shipped out of state are not taxed by the state they are shipped from. Also, non profit organizations like schools and churches are usually exempt from paying sales tax. And if you sell to another dealer who will be in turn selling the shirts to his customers, you would not collect tax from him since he will be taxing his end buyers.

You will determine what taxes are necessary for each job (state, city, county, etc.) and add that percentage onto the sell price of your shirts. 

You are not being charged the tax, the customer is. You are just responsible for collecting it and remitting it to the government. So there are no deductions or credits as there are in income taxes. If you make $100 they will expect you to collect a percentage and remit it no matter how small it may be.


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## calhtech (Feb 4, 2012)

prodigy222 said:


> Thanks a lot, one question would i have to pay the sales tax if i sold in another state? and say i never sold anything in the state of rhode island? would i pay anything?


*Per member request -Disclaimer: I am not an accountant, but I have operated a retail computer business since 1991. These are the steps that are required in the state I do business in, Mississippi.*

Usually you are not required to "collect" sales tax from a sale made out of your state, and therefore not required to pay any. The states are pissed about this and are fighting to have this changed as we speak. But for now, that's the way it is. And NO, if you are not required to collect Sales Tax, you are not required to pay any Sales Tax. Disclaimer: I am not an accountant, but I have operated a retail computer business since 1991. These are the steps that are required in the state I do business in, Mississippi. Good luck.

CalhTech>


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## prodigy222 (Jan 26, 2014)

Okay so if I sell 100 dollars in another state online won't have to pay sales tax. Don't worry I'm going to make sure and call the ri tax office


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## calhtech (Feb 4, 2012)

prodigy222 said:


> Okay so if I sell 100 dollars in another state online won't have to pay sales tax. Don't worry I'm going to make sure and call the ri tax office


*Per member request -Disclaimer: I am not an accountant, but I have operated a retail computer business since 1991. These are the steps that are required in the state I do business in, Mississippi.*

That is correct. It works the same as when YOU buy something online. You USUALLY are not required to pay sales tax for the sellers state. So same holds true if you sell out of your state. The buyer is not required to pay it and your are not require to collect it. Hope this helps.


CalhTech>


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## Ripcord (Sep 2, 2006)

prodigy222 said:


> Okay so if I sell 100 dollars in another state online won't have to pay sales tax. Don't worry I'm going to make sure and call the ri tax office


But you still need to account for the sales on your quarterly form and file it with your state department of revenue. Whether you owe any taxes or not.


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## royster13 (Aug 14, 2007)

calhtech said:


> That is correct. It works the same as when YOU buy something online. You USUALLY are not required to pay sales tax for the sellers state. So same holds true if you sell out of your state. The buyer is not required to pay it and your are not require to collect it. Hope this helps.
> 
> 
> CalhTech>


Really?......I thought some states have reciprocal agreements with other states.....


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## calhtech (Feb 4, 2012)

Ripcord said:


> But you still need to account for the sales on your quarterly form and file it with your state department of revenue. Whether you owe any taxes or not.


That is correct! Once you start, you can't stop until you CLOSE DOWN. 

CalhTech>


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## calhtech (Feb 4, 2012)

royster13 said:


> Really?......I thought some states have reciprocal agreements with other states.....


*Per member request -Disclaimer: I am not an accountant, but I have operated a retail computer business since 1991. These are the steps that are required in the state I do business in, Mississippi.*

Not in Mississippi, (most US states as well) The only time we are required to pay sales tax from an ONLINE purchase in another state is when the SELLER has a PRESENCE in the state we are buying in. IE If I buy something from DELL online as an end user, I am charged sales tax because Dell has a PRESENCE in Mississippi. That would hold true for any company (seller/company), that has a presence in the state (meaning they pay sales tax there too) where the buyer resides unless the buyer has a RESALE CERT for the products he is purchasing and that company has it on file. IE the buyer is not exempt from paying sales tax on say T-SHIRTS, if his company filed with the state as a PLUMBER. 
CalhTech>


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## royster13 (Aug 14, 2007)

Sorry but "Most" is not "All"......So you may be giving "bad" advice to someone who apparently can not do the research on their own.....I have no idea what the rules are in Rhode Island but I know they are not the same rules as Mississippi, although they may be similar.....It would be best for the OP to check versus relying on "free" legal advice in an online forum....


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## calhtech (Feb 4, 2012)

royster13 said:


> Sorry but "Most" is not "All"......So you may be giving "bad" advice to someone who apparently can not do the research on their own.....I have no idea what the rules are in Rhode Island but I know they are not the same rules as Mississippi, although they may be similar.....It would be best for the OP to check versus relying on "free" legal advice in an online forum....


Please see this from one of my earlier posts - 

"Disclaimer: I am not an accountant, but I have operated a retail computer business since 1991. These are the steps that are required in the state I do business in, Mississippi."

CalhTech>


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## royster13 (Aug 14, 2007)

calhtech said:


> Please see this from one of my earlier posts -
> 
> "Disclaimer: I am not an accountant, but I have operated a retail computer business since 1991. These are the steps that are required in the state I do business in, Mississippi."
> 
> CalhTech>


Yes I saw that.....But the problem is many folks just "skim" until they see what they want to read.....So sometimes the"disclaimers" get disconnected from the "bad advice" that went along with them....


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## calhtech (Feb 4, 2012)

royster13 said:


> Yes I saw that.....But the problem is many folks just "skim" until they see what they want to read.....So sometimes the"disclaimers" get disconnected from the "bad advice" that went along with them....


Point Taken> I'll do better ROYCE.


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