View Full Version : Reseller Permits

Vivid Color Zack
08-19-2009, 01:58 PM
I guess this is an accounting question... Maybe it's not really...

Ok so as a california reseller I have to have a resale certificate to legally purchase goods tax free and resell them adding tax myself. That's what all of us do right?

So on this resellers permit my company is authorized to sell printing, printed goods, marketing collateral, and maybe some other things of that nature.

I'm trying to start something a little more fun on the side, as this business is running itself fairly well now - I think I would really enjoy selling aftermarket automotive (sport compact, rally, spec racing? haven't decided yet) parts. Or maybe something to do with snowboarding or bikes.

Do I need to get an additional reseller certificate? Can I just add whatever products I want to my existing permit? I'm not starting another corporation for this so I will be using the same reseller certificate most likely.

Thoughts? Experience?

08-19-2009, 03:33 PM
Wow. I'm so not an accountant, but I think the certificate for the corporation covers everything you sell under that corporate name.

I'd check with a California accountant though, or at least check the sales tax rules online.

Vivid Color Zack
08-19-2009, 05:18 PM
The office that handles this stuff is actually very conveniently located. I should drop in this week and find out. I'll post up what I find out if anyone is curious.

08-19-2009, 08:05 PM
It depends on what your corporation is authorized to do by law. If you were incorporated with the purpose of doing "any legal business", then that appears to be reasonable. If it was strictly relating to your printing business, then you are doing something your corporation isn't authorized to do by law.

In RI, you just get a general "resellers" permit, it doesn't specify what it can be used for. Not too sure about California's rules.

Vivid Color Zack
08-25-2009, 01:07 PM
Well apparently in CA they won't issue another permit to a corporation... So in my listing of goods to be sold I now list sporting goods, automotive products, printing and marketing collateral, tangible goods - I think this covers anything I could see myself reselling. Especially the tangible goods part, haha.

Easy as pie. Now to sell something I actually like :) Anyone want a K&N air filter? :)

09-03-2009, 07:35 PM
You wouldn't be remitting CA sales tax on my behalf anyways :-)

It does seem like it'd be as easy as amending the application of what you sell, or making what you sell more "broad".