Introduction

If you are running an e-commerce business on Amazon or Shopify, getting a reseller Certificate for Amazon or Shopify is essential to save on sales tax and comply with state tax laws. A reseller certificate, also known as a sales tax permit or resale certificate, allows you to buy products tax-free from suppliers and wholesalers when you intend to resell them.

This guide will cover everything you need to know about obtaining a reseller certificate, including:

• What is a reseller certificate, and why do you need one?
• How to apply for a reseller certificate as a U.S. or non-U.S. resident
• The best states for registering your reseller business
• State-specific sales tax rules and compliance
• Common mistakes to avoid when applying

If you’re an international seller, don’t worry—House of Neurals can help you register your U.S. business, obtain your U.S. tax filings, and comply with IRS notices to ensure smooth operations.

What is a Reseller Certificate?

A reseller certificate for Amazon or Shopify is a document issued by a state’s tax authority that allows businesses to purchase goods tax-free when buying for resale. Without this certificate, wholesalers will charge you sales tax, which increases your business costs.

Benefits of Having a Reseller Certificate:

✔ Tax-Free Purchases: Buy inventory from wholesalers without paying sales tax.
✔ Avoid Double Taxation: Customers will pay sales tax when they buy from you.
✔ Legally Required in Some States: Some states mandate a reseller certificate for online businesses.

Many suppliers and wholesale platforms like Alibaba and Faire require you to provide a reseller certificate before you can buy products tax-free.

Do You Need a Reseller Certificate for Amazon and Shopify?

Yes, if you are sourcing products from U.S.-based suppliers, a reseller certificate is required to avoid unnecessary sales tax charges. However, not all states require sales tax collection for online businesses.

Who Needs a Reseller Certificate?

• Amazon FBA and Shopify sellers buying from U.S. wholesalers
• Dropshipping businesses dealing with U.S.-based suppliers
• Businesses storing inventory in U.S. warehouses

If you are a non-U.S. resident, you can still obtain a reseller certificate by registering a U.S. entity incorporation such as an LLC and obtaining an EIN (Employer Identification Number).

Steps to Get a Reseller Certificate for Your Amazon or Shopify Business

1: Register Your Business in the U.S.

To apply for a reseller certificate, you must first register a business in the U.S. The most common structure for e-commerce sellers is a Limited Liability Company (LLC) due to its simplicity and tax advantages.

Some of the best states for registering an LLC include:

• Delaware – Business-friendly laws and low maintenance costs
• Wyoming – No state sales tax for digital products
• Florida – Low fees and easy compliance

👉 House of Neurals offers US entity incorporation services to help you set up your LLC easily.

2: Obtain an EIN (Employer Identification Number)

An EIN is required for tax purposes and business operations. This is issued by the IRS and acts as a business tax ID.

If you’re a non-U.S. resident, you can obtain an EIN without an SSN. House of Neurals provides assistance in obtaining IRS tax filings and EIN registrations.

3: Apply for a State Sales Tax Permit

Each U.S. state has its own tax authority that issues reseller certificates. Here’s how to apply:

1. Find Your State’s Tax Department – Visit the official state revenue department website.
2. Complete the Application – Provide business details, EIN, and business address.
3. Submit Required Documents – Some states may require additional paperwork, such as proof of business registration.
4. Pay Fees – Some states charge a small registration fee.

Processing Time: Most states issue reseller certificates within 1-4 weeks.

4: Use Your Reseller Certificate

Once approved, you can use your reseller certificate to buy products tax-free. Simply provide a copy to your suppliers and update your tax settings in Amazon Seller Central or Shopify dashboard.

State-Specific Rules for Reseller Certificates

Not all states have the same rules for issuing reseller certificates. Here are some key considerations:

• No State Sales Tax States: Delaware, Oregon, Montana, New Hampshire, and Alaska do not have state sales tax, so a reseller certificate may not be necessary.
• Marketplace Sales Tax Collection: Some states, like California and Texas, require platforms like Amazon to collect and remit sales tax on your behalf.
• Renewal Requirements: Some states require you to renew your reseller certificate annually or every few years.

👉 Need help understanding your tax obligations? House of Neurals provides U.S. tax filing and compliance assistance.

Common Mistakes to Avoid When Applying

Getting a reseller certificate may seem simple, but many business owners make these mistakes:

• Choosing the Wrong State for LLC Formation – Some states have high sales tax rates, making them less favorable for e-commerce businesses.
• Failing to File Sales Tax Returns – Even if you don’t collect sales tax, some states require you to file zero-dollar tax returns.
• Providing Incorrect Business Information – Any errors in your EIN or   business address can lead to application rejections.
• Not Renewing on Time – Some states require periodic renewal to keep your certificate valid.

Tip: Partner with House of Neurals to handle your IRS notice and tax compliance needs.

States With the Strictest Reseller Certificate Requirements

While most states issue reseller certificates with a straightforward process, some states have stricter rules regarding documentation, renewal, and tax reporting. These states often require additional filings or impose stricter compliance measures:

• California – Requires detailed sales tax reporting and periodic renewal. Businesses must also ensure they are collecting and remitting sales tax properly.
• Texas – While obtaining a reseller certificate is simple, businesses must file frequent sales tax returns and maintain accurate transaction records.
• Florida – Mandates that businesses register with the Department of Revenue and file periodic sales tax reports even if no tax was collected.
• New York – Requires a detailed business verification process before issuing a reseller certificate. Businesses must submit regular tax filings.
• Illinois – Enforces strict sales tax compliance and may require additional paperwork for non-U.S. business owners applying for a reseller certificate.

If you plan to register your business in any of these states, ensure that you understand the tax obligations. House of Neurals can assist with tax compliance and U.S. tax filings to keep your business in good standing.

Best States for E-Commerce Reseller Certificates

Choosing the right state for your reseller certificate can impact your tax liabilities and ease of doing business. Some states have more favorable tax policies and minimal compliance requirements:

• Delaware – No state sales tax, making it a top choice for online businesses. However, some suppliers may still request a reseller certificate.
• Wyoming – No state sales tax and low business maintenance costs, making it ideal for e-commerce businesses.
• Montana – No sales tax, but businesses may need to register if selling in other states.
• New Hampshire – No sales tax, reducing administrative burdens for online sellers.
• Oregon – No statewide sales tax, although certain local jurisdictions may have specific rules.

If your business primarily operates online and does not have a physical presence in a high-tax state, choosing one of these tax-friendly states can simplify compliance. House of Neurals provides US entity incorporation services to help you register your business in the best state for your needs.

How House of Neurals Can Help You Get a Reseller Certificate

Navigating U.S. business regulations can be complex, especially for non-residents. House of Neurals simplifies the process by offering:

✔ U.S. Entity Incorporation – We register your LLC in the best e-commerce-friendly state.
✔ EIN Registration – We help you obtain an EIN, even if you don’t have an SSN.
✔ U.S. Tax Filings – Stay compliant with IRS requirements and avoid penalties.
✔ Sales Tax Compliance – We guide you through tax permit applications and filings.
✔ Stripe Payment Setup – Get access to U.S. payment gateways for easy transactions.

Conclusion

A reseller certificate for Amazon or Shopify is a must-have if you are purchasing inventory from U.S. suppliers and selling online. By registering a U.S. business, obtaining an EIN, and applying for a reseller certificate, you can legally avoid unnecessary sales tax and maximize your profits.

For a hassle-free setup, House of Neurals offers end-to-end solutions, from US entity incorporation to U.S. tax filings and sales tax compliance. Contact us today to get started!