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

In this guide, we’ll answer a major question that many e-commerce store owners have: “How to Get a Reseller Certificate for Your Amazon or Shopify Business?”

If you’re buying products to resell, whether on Amazon, Shopify, Etsy, or eBay, there’s one essential document you need: a reseller certificate.

And without it, you might be overpaying sales tax on inventory purchases. A reseller certificate lets you buy goods tax-free from wholesalers or manufacturers since sales tax is only collected when you sell to the end customer.

Common businesses that benefit from a reseller certificate include:

✔️ Amazon FBA sellers purchasing inventory from wholesalers

✔️ Shopify drop shippers sourcing products from suppliers

✔️ Retailers buying bulk items from manufacturers

✔️ Boutique owners purchasing clothes and accessories for resale

But getting a reseller certificate is a tricky business. Every state has different rules, and platforms like Amazon and Shopify have their own requirements.

That’s where this guide comes in. 

We’re breaking down everything you need to know about reseller certificates, including:

✅ How to get a reseller certificate for your Amazon or Shopify business (step by step).

✅ The specific rules for Amazon and Shopify sellers.

✅ State-specific rules

Let’s get started.

What Is a Reseller Certificate?

A reseller certificate (also known as a sales tax exemption certificate) allows businesses to buy products tax-free when they are intended for resale. Instead of paying sales tax upfront when purchasing inventory, you only collect and remit sales tax when you sell the product to customers.

If you run a Shopify store selling electronics and buy bulk headphones from a supplier, a reseller certificate exempts you from paying sales tax on that purchase. You only charge sales tax to the end customer when they buy from your store.

Keep this in mind: A reseller certificate does not exempt you from sales tax entirely. It only applies to wholesale inventory purchases, not office supplies, equipment, or personal purchases.

Why You Need a Reseller Certificate for Amazon & Shopify

Most e-commerce sellers know a reseller certificate helps avoid paying sales tax on inventory purchases, but there’s a lot more to it than that. 

Here’s what most people won’t tell you about why this certificate is crucial for your business.

1. You’re Probably Overpaying on Inventory Without It

Without a reseller certificate, wholesalers and suppliers charge you sales tax, even though you’re not the final consumer. That means you’re paying unnecessary taxes upfront and reducing your profit margins before you even make a sale.

Hidden Issue: Many suppliers won’t tell you this outright because they don’t have to. If you don’t provide a reseller certificate, they’ll collect sales tax by default, and that’s money you didn’t have to spend.

2. Some Suppliers Won’t Even Sell to You Without It

Many wholesalers, distributors, and manufacturers require a reseller certificate before they let you open an account or buy at wholesale prices.

Let’s say, you find the perfect supplier for your store, but when you try to place an order, they ask for a reseller certificate. If you don’t have one, you’re stuck paying full retail price, or worse, they refuse to do business with you altogether.

3. You Could Face Fines for Not Having One

Most states require a reseller certificate if you’re buying for resale. If you’re audited and found without one, you could get hit by penalties, back taxes, and interest.

Some states aggressively audit e-commerce businesses because they know sellers often don’t keep proper sales tax records. If your paperwork isn’t in order, it could cost you thousands in unexpected tax bills.

4. Amazon & Shopify Have Their Own Rules

Amazon and Shopify don’t require a reseller certificate to start selling, but they do have platform-specific sales tax rules that impact your business:

Amazon Sellers:

Amazon automatically collects and remits sales tax in some states, but that doesn’t exempt you from needing a reseller certificate for your own purchases. And, many Amazon FBA wholesale suppliers require it to sell to you.

Shopify Sellers:

If you sell to customers in multiple states, you may need multiple reseller certificates to stay compliant. Plus, Shopify doesn’t handle sales tax collection for you, so you need to set it up correctly.

How to Use a Reseller Certificate for Your Amazon or Shopify Store

Here’s how you can use your reseller certificate effectively for your Amazon or Shopify store:

• Tax-Free Inventory Purchases – When sourcing products from wholesalers or manufacturers, provide your reseller certificate to avoid paying sales tax upfront. This helps reduce costs and increase profit margins on your Amazon FBA or Shopify store.

• Build Stronger Supplier Relationships – Many wholesalers and distributors require a reseller certificate before they do business with you. Having one makes your store legit and credible in their eyes, giving you access to better bulk pricing and exclusive products.

• Charge Sales Tax the Right Way – With a reseller certificate, you’re responsible for collecting and remitting sales tax from your customers. Amazon’s Marketplace Tax Collection (MTC) handles it in most states, but Shopify sellers must set up tax collection manually to stay compliant.

• Expand Your Business with Confidence – Whether you’re dropshipping, wholesaling, or running an Amazon FBA business, having a reseller certificate makes your operations smoother by ensuring legal compliance and giving you access to tax-free product sourcing.

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

If you’re wondering how to get a reseller certificate for your Amazon or Shopify business, the process isn’t the same in every state. However, it usually involves three key uniform steps, like, registering your business, applying for a sales tax permit, and submitting the necessary documents to tax authorities.

This section is packed with important details, so take your time and go through each step carefully.

1. Register Your Business (LLC, Sole Proprietorship, or Corporation)

Before you can apply for a reseller certificate, you need a legally registered business. Most sellers opt for an LLC because it offers legal protection and tax flexibility.

Steps to Register Your Business:

Choose Your Business Structure: LLCs are preferred for liability protection.

Pick a Business Name: Ensure it’s unique by checking with your state’s Secretary of State website.

File Formation Documents: Submit your Articles of Organization to officially form your business.

Appoint a Registered Agent: Some states require a registered agent to receive legal documents.

How doola Helps: doola makes registering your LLC hassle-free by handling paperwork, filing your documents, and setting up your business in all 50 states. Book a consultation now!

2. Get an EIN (Employer Identification Number)

An EIN is like a National Identification Number (NIN) or Social Security Number for your business. You’ll need it for taxes and to apply for a reseller certificate.

Steps to Get an EIN:

Go to the IRS website and apply online.

Fill out Form SS-4 (basic business info).

Receive your EIN immediately after submission.

How doola Helps: doola applies for your EIN on your behalf, so you don’t have to deal with IRS paperwork.

3. Apply for a Sales Tax Permit (Seller’s Permit)

A sales tax permit (also called a seller’s permit) allows you to collect and remit sales tax in your state. Some states require this before issuing a reseller certificate.

Steps to Get a Sales Tax Permit:

Visit your state’s Department of Revenue website.

Fill out the application with your EIN, business name, and address.

Submit the form and pay any state fees (some states don’t charge a fee).

How doola Helps: doola guides you through the process and ensures you get your sales tax permit in the correct state.

4. Apply for a Reseller Certificate

Once you have your sales tax permit, you can apply for a reseller certificate in your state.

Steps to Apply:

Find Your State’s Application: Each state has different reseller certificate forms. Find them on your state’s tax website.

Provide Business Details: Enter your EIN, sales tax permit number, and business type.

Submit to the Tax Authority: Send your application online or via mail, depending on the state.

Wait for Approval: Some states issue certificates instantly, while others take a few weeks.

Book a free consultation with our experts and obtain your reseller certificate!

5. Submit Your Reseller Certificate to Suppliers

Once your reseller certificate is approved, you need to provide a copy to your wholesalers, suppliers, or dropshipping partners.

Steps to Use Your Reseller Certificate:

Send a copy to your suppliers before making a purchase.

Fill out reseller forms (some suppliers may require additional verification).

Ensure the certificate is valid (some states require periodic renewals).

How doola Helps: doola helps you track expiration dates so you stay compliant with reseller regulations.

Best States for E-Commerce Reseller Certificates

Some states have no sales tax, while others have easy application processes, lower fees, and better tax advantages. 

Here’s a breakdown of the best states to register for a reseller certificate:

1. Delaware 

Delaware has zero sales tax, so you won’t have to worry about collecting or remitting sales tax for in-state transactions.

✔ Best for: E-commerce sellers looking to avoid complex tax filings.

2. Oregon 

Like Delaware, Oregon has no state sales tax, which simplifies compliance for e-commerce businesses.

✔ Best for: Resellers and dropshippers who don’t want to deal with sales tax reporting.

3. Montana 

Montana has no general sales tax, making it an excellent choice for e-commerce sellers.

✔ Best for: Small business owners looking for minimal tax obligations.

4. Wyoming 

Wyoming offers no state income tax and has a business-friendly climate.

✔ Best for: Sellers looking to register their business in a low-tax state.

5. California 

If your suppliers or customers are in California, having a California reseller certificate helps avoid unnecessary tax charges.

✔ Best for: Resellers sourcing or selling in California.

6. Texas 

Texas allows businesses to use their reseller certificate across multiple states due to its economic nexus advantages.

✔ Best for: Sellers with suppliers in Texas who want a resale exemption.

Deep dive: How to Fill Out the Uniform Sales & Use Tax Resale Certificate

States With Strict Reseller Certificate Rules

Certain states impose strict rules and challenges when it comes to reseller certificates, making compliance trickier for e-commerce sellers.

Here are some key states with tough regulations:

• California requires sellers to renew their reseller certificate periodically and maintain strict resale verification records.

• New York mandates detailed sales records and conducts periodic audits. Misuse of resale certificates leads to heavy penalties.

• Florida requires annual renewal of reseller certificates and sellers must present a detailed purchase history if audited.

• Illinois requires businesses to obtain a Certificate of Registration before applying for a reseller certificate, adding an extra compliance step.

• Texas enforces economic nexus laws, meaning even out-of-state sellers may need to collect sales tax if they exceed certain sales thresholds.

• Washington requires a separate reseller permit, which isn’t automatically granted. Strict eligibility rules apply.

• Pennsylvania has narrow restrictions on what qualifies as a resale purchase, making compliance more complex.

• Tennessee has a strict verification process and closely monitors exemptions, increasing the risk of audits.

• Massachusetts audits resellers frequently and requires detailed record-keeping to justify tax-exempt purchases.

• Minnesota conducts frequent compliance checks and requires resellers to provide detailed exemption reasons when applying.

Let doola Handle Your Sales Tax & Reseller Certificate Registration With Ease

Getting through sales tax and obtaining a reseller certificate can be quite complex for e-commerce entrepreneurs. But not to worry, doola simplifies this process by offering:

• Expert Guidance: Assisting you in registering and applying for the necessary sales tax permits and reseller certificates.

• End-to-End Filing Support: Handling the paperwork and submissions to ensure compliance with state-specific laws.

• Actionable Insights: Providing clear steps and advice to help you avoid costly mistakes.

To learn more about how doola can assist you in obtaining your reseller certificate, consider scheduling a free consultation with our experts.

FAQs

Is a reseller certificate the same as a sales tax permit?

No, but they are related. A reseller certificate allows you to buy goods tax-free for resale, while a sales tax permit enables you to collect and remit sales tax from customers.

Do I need a reseller certificate in every state where I sell?

Not necessarily. You typically need one in the state where your business operates or where you have a physical presence. However, some states require registration if you sell there regularly.

How long does it take to get a reseller certificate?

It varies by state but usually takes a few days to a few weeks, depending on processing times and whether additional documentation is required.