How Do I Get a Resale Certificate in Illinois

How to Get a Resale Certificate in Illinois

If you plan to engage in the business of reselling products in the state of Illinois, you will need to obtain a resale certificate. This document allows you to purchase goods tax-free from wholesalers and suppliers, as you will be responsible for collecting and remitting sales tax when you sell those products to your customers. Here is a step-by-step guide on how to obtain a resale certificate in Illinois:

1. Determine your eligibility: To qualify for a resale certificate, you must be engaged in a business that involves selling tangible personal property. This includes both retail and wholesale businesses.

2. Register your business: Before applying for a resale certificate, make sure your business is properly registered with the Illinois Department of Revenue. You can register your business online through the MyTax Illinois portal or by submitting Form REG-1, Illinois Business Registration Application.

3. Gather necessary information: To complete the application for a resale certificate, you will need the following information:
– Business name and address
– Federal Employer Identification Number (FEIN) or Social Security Number (SSN)
– Description of the type of products you will be reselling

4. Complete the application: Once you have the necessary information, you can apply for a resale certificate online through the MyTax Illinois portal. Alternatively, you can complete Form ST-5, Sales Tax Resale Certificate, and mail it to the Illinois Department of Revenue.

5. Await approval: After submitting your application, it may take a few weeks for the Illinois Department of Revenue to process it. Once approved, you will receive your resale certificate in the mail.

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FAQs about Getting a Resale Certificate in Illinois

Q: Is there a fee for obtaining a resale certificate?
A: No, there is no fee associated with obtaining a resale certificate in Illinois.

Q: How long is a resale certificate valid for?
A: Resale certificates in Illinois do not expire unless the business changes its legal entity or ownership.

Q: Can I use my resale certificate in other states?
A: No, a resale certificate issued by Illinois is specific to the state and cannot be used for tax-exempt purchases in other states.

Q: What if I lose my resale certificate?
A: If you lose your resale certificate, you can request a replacement by contacting the Illinois Department of Revenue.

Q: Can I use a resale certificate to purchase items for personal use?
A: No, a resale certificate is only intended for making tax-exempt purchases of goods that you plan to resell.

Remember, it is important to comply with all state and local tax laws and regulations, including properly collecting and remitting sales tax. Obtaining a resale certificate in Illinois will enable you to streamline your purchasing process and avoid paying sales tax on items you plan to resell.