Do you pay taxes when buying from a wholesaler or distributor? This is probably the most boring part of starting a business but it’s very important! We’re asked by a lot of customers why taxes show up on their invoice and how to obtain a resale certificate, so they’re not charged taxes by us anymore. The resale certificate is an official document that shows you resell goods to another consumer and thereby are not taxed by your suppliers or wholesalers. Merchandize Liquidators is a wholesaler of liquidation merchandise so if you register with us and have a valid resale certificate, then you will not be charged taxes by us!
*Since Merchandize Liquidators is headquartered in Miami, Florida, for the purposes of this guide we’ll use State of Florida as the examples in filing company information*
Start a Business
If you read <<Step 1: Choose a Business Model>> and decided on what business to open, then you’ve probably already decided a name a well. Great! The next step is to make is official. If you are a resident of Florida, go to SunBiz.com (https://efile.sunbiz.org/llc_file.html) and select “File Articles of Incorporation.” Fill out the paperwork and pay the fee. As of 2020, the fee to file is $125 USD. It might take time for your business to become official but as soon as you get confirmation that you have formed your business, you will receive the official documents by mail or email.
Tips on Filing Business Paperwork
After you get your business formation paperwork, it’s time to apply for Sales and Use Tax. Once you apply for this, you can get your resale certificate! Go to Florida Dept. of Revenue and select “Enroll New Account(s).” Make sure you have your bank information ready and go through and fill out the paperwork. !!!DO NOT LOSE YOUR LOGIN INFORMATION OR PASSWORD!!!
Stop Paying Sales Tax!
You did it! The last step is to download your resale certificate. Use the login and password from the previous step, find the “Print Resale Certificate” and follow the instructions to download a pdf copy of your resale certificate. You should be all set! Now when you buy from a wholesaler like Merchandize Liquidators, you no longer need to pay taxes! Hooray!
<< Click Here for Step 3: Funding Your Business >>