How can I avoid paying sales tax on items I am purchasing to sell? I will be collecting sales tax on the items when I sell them

Asked almost 4 years ago - Milwaukee, WI

I want to start an online store, and heard that I don't have to pay sales tax on items I am going to sell. What do I need to do to take advantage of this?

Attorney answers (3)

  1. Neil Alan Wehneman

    Contributor Level 11

    1

    Lawyer agrees

    Answered . Do you intend to buy items solely in Wisconsin, or in other states? Most states have a form that you file to obtain a sales and use tax exemption certificate for items you purchase in that state.

    Wisconsin's form is at http://www.revenue.wi.gov/forms/sales/s-211.pdf

    You may need to find and file similar forms in other states.

    Taxes are not an issue to take lightly. My strong recommendation would be to sit down with a CPA and/or a tax lawyer early in your business process to make certain you are filing the right forms and not opening yourself up to unintended tax liability.

    - Neil Wehneman


    P.S. The standard disclaimers apply. These are general statements of law, and not legal advice, because I do not have all of the relevant facts. I am licensed to practice law in Indiana, and only practice outside Indiana through association with local co-counsel.

    If you have other questions or if you would like to discuss your situation in more detail, feel free to contact me.


    FEEDBACK on this post is appreciated, either thumbs-up or thumbs-down.

  2. Henry Daniel Lively

    Contributor Level 20

    Answered . You will need to obtain a seller's permit from your state. There is a procedure you will have to follow to accomplish what you are trying to do. Each state is a little different so you will need to contact you state agency that administers the sales tax in your state. Sales tax laws can get very complicated so it would be a good idea for you to hire a local tax professional to help you get set up.

    Any individual seeking legal advice for their own situation should retain their own legal counsel as this response provides information that is general in nature and not specific to any person's unique situation. Circular 230 Disclaimer - Advice given in this response cannot be used to eliminate penalties with the IRS or any other governmental agency.

  3. Robert Jan Suhajda

    Contributor Level 17

    Answered . Apply for a Reseller Permit. See prior answer for more information.

    Disclaimer of California Attorney
    Although the above response is believed to be accurate, it should not be relied upon as any type of legal advice because the information provided is incomplete. It is intended to educate the reader and a more definite answer should be based on a consultation with a lawyer. No attorney client relation is formed with me without a written contract.

    Good Luck starts with a strategy and a plan.

    Robert J. Suhajda, MS,CPA
    Attorney-At-Law
    17721 Norwalk Blvd. #43
    Artesia, CA 90701
    562-924-8922


    Tax Relief Lawyer. Former financial auditor and controller. Admitted to US Tax Court, Income Tax, IRS representation, Fiduciary income tax returns, Estate and Gift tax returns, Homeowner Association Strategist.

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