# Confused About Certificate of Authority and Resale Certificate, which one do I need in NY?



## blkfriars

I'm Kinda lost here.....I was just told by the irs that I don't need to send in for a Resale Certificate/license (Form ST-120) That it is only used when buying wholesale products, the vendor that sold the product to me at wholesale cost was to fill out Form ST-120 to show that I didn't pay taxes on their product. And that the Certificate of Authority is the only thing I need to collect taxes and resale products that I brought wholesale. Any help would be good....Thanks


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## kimura-mma

Yep, they were correct. You need a Certificate of Authority in NY.


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## FitNFit

Yup, I just went through all this. You need a Certificate of Authority in NY and thats it.

You will use a Resale Certificate Form (printed offline) to give to your vendors for them to have on file so you can buy from them tax free.

Just remember you have to send in quarterly sales to the IRS to show how much "tax" you collected. Even though you will not be collecting tax because NY is tax free on clothing, you still have to send in the form.

Good luck!


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## boneshaker

Hello, i'm new here. Just wanted to chime in..

Does anyone know what "Business Type" to choose (from OPAL, Online Permit Assistance and Licensing, Home) when applying for a C.O.A. if I am screen printing for clients and also selling apparel as a brand? 

The closest one I found was "Apparel Manufacturing"

Thanks in advance for the help!

Steve


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## kimacobb

FitNFit said:


> Yup, I just went through all this. You need a Certificate of Authority in NY and thats it.
> 
> You will use a Resale Certificate Form (printed offline) to give to your vendors for them to have on file so you can buy from them tax free.
> 
> Just remember you have to send in quarterly sales to the IRS to show how much "tax" you collected. Even though you will not be collecting tax because NY is tax free on clothing, you still have to send in the form.
> 
> Good luck!


 NY is tax free on clothing ????????


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## missswissinc

Hey Andy your somewhat right and wrong. Yes you wont be sending the state a tax bill showing what you bought. However, You will still need to collect some form of sales tax if you resell the shirts which means you screen print, emb, transfer etc your going to need to pay a tax. With NY they let the counties decide if they want to collect sales tax for their county. Well orange county has 2 malls and a outlet center and with all those sales they decided to collect the county tax of 4.125%. Now the state however still requires you to pay a tax though. The state worked it out that if the shirt prior to embellishment is under $50 then your not required to collect sales tax. However, if the item is over $50 then you required to collect the state sales tax so for us you add 4%. 

I would suggest sitting down with a CPA (Certified Public Accountant) and ask that person what taxes am I going to need to be required to collect. If the county requires you to collect the county tax that person should know how much the tax is. and the same with lets say you sell jackets to a person which costs more then $50 that you collect the state tax and county one if needed. Believe me we've been doing this for now almost 2 yrs and believe me our cpa tells us what taxes we are required to pay every month to the state when we sell our shirts.


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