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I´m a European ecommerce seller who has a European business…

Hi, I´m a European...

Hi, I´m a European ecommerce seller who has a European business entity. I would like to source products in US, but a reseller certificate (=sales tax permit) is required by wholesalers. Is it possible to obtain such a certificate for a foreign legal entity and in which state should I apply for that?

Accountant's Assistant: The Accountant will know how to help. Is there anything else the Accountant should be aware of?

I´m planning to sell these products in US ecommerce marketplaces not in Europe.

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Answered in 3 minutes by:
3/15/2018
Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 17,624
Experience: 15years with H & R Block. Divisional leader, Instructor
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Hello, I'm Robin. Welcome to JustAnswer. I'm reviewing your question now and typing up my reply. I'll post that in just a few moments.

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A business which is registered for sales and use tax can use a resale certificate only when the merchandise being purchased is to be resold by the business.

The first part is that the business is registered. US sales tax is a state specific tax. A non US entity is not registered to collect US sales tax in any state so no resale certificate is going to apply.

You would need to be a US registered company in a specific state and then register in that state to apply any resale certificate.

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Customer reply replied 1 month ago
Thank you Robin. Is it possible to register a LLC in one state for example in Wyoming and then get the resale certificate in an other state. I just heard from a foreign colleague seller that Wyoming is not issuing resale certificates to ecommerce business.

You would need to register as a foreign company (meaning foreign to that state and registered in WY).

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Customer reply replied 1 month ago
If a business has nexus in several states, is a resale certificate required in all those nexus states?

You would need to give the resale certificate to any company that you dealt with. If you have nexus in a state then you most likely have to register in that state and would use their resale certificate.

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Customer reply replied 1 month ago
I´m sorry, I understood you wrong. Do you mean I could register my European business entity in one of the US states without forming a US business entity like LLC?

If you are registered in WY that would be enough to register in the state(s) that you have nexus as a foreign (other state) entity. You must be registered in some US state.

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Customer reply replied 1 month ago
Ok, thanks. Just to make it clear. You mean that I could register my foreign business entity for example in Wyoming?

Yes you can register in WY then register as a WY company doing business in X state for sales tax purposes

You are most welcome.
A positive 5 star rating is appreciated so I am credited for assisting.

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Customer reply replied 1 month ago
Can you advice where the registration of a foreign business is done? I mean which department in the state I should contact?

Most states have a website that would be under Revenue and listed as Sales Tax with information on registering and Nexus

Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 17,624
Experience: 15years with H & R Block. Divisional leader, Instructor
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Customer reply replied 1 month ago
Ok, thanks Robin. I will look for those websites.
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