What is a Reseller Permit?
A reseller permit is a license that allows an individual or company to buy and then sell products outside the United States. Many companies will not sell their product to residents in another country without this license. That is why you need to get a reseller permit to continue with your business.
Who Needs a Reseller Permit?
- If you are planning on buying items for resale
- If you find a company that won’t sell to you unless you have the reseller permit
- If you plan on buying items to export and sell in another country, it is highly recommended that you get this license.
Many new businesses are looking for reseller permits. It is essential to know that this type of license will only be issued if the company does not have its business address.
Instead, it is an agreement between two businesses – where one acts as a “middleman” or agent for the other’s products or services. The process is relatively straightforward. If a company has its address, it must apply for a regular business license.
The Application Process
- The first step in applying for a reseller permit Texas is to register the company and obtain a resale number. The application process takes less than one week.
- After submission and registration are completed, the next step is to apply for a state sales tax number. The application is accessible online or by visiting one of many convenient offices across Texas.
- The application must include basic information about the company, such as contact names and phone numbers, federal tax ID, and any relevant additional documentation.
What is a reseller permit for?
After the business has been approved for a state sales tax number, it is essential to know that the company can only sell products or services directly – not resell other companies’ goods. Under certain conditions, however, the agency may act as an authorized representative of another company in Texas.
Although there are some exceptions, generally, only businesses that already have a tax-exempt number are allowed to resell in Texas without applying for a special license.
If the agent has employees, they must be given employment verification forms so their taxes can be collected and processed by the state. It means that when hiring new staff or contractors, the business will have to complete and submit a new application to the state.
In a nutshell, a reseller permit in Texas serves two distinct functions. The first is that it allows the “middleman” to act on behalf of the company that sells the goods or services, and perform tasks such as advertising, invoicing, promoting, or promoting its products/services.
The other function is to allow the agency to re-sell these products under its name without obtaining a separate license. It is done by adding a mark to those products to be easily identified and distinguished from other brands and businesses. You can find some exceptions: for instance, the agent cannot re-sell products that have already been sold to another Texas company if it results in unfair competition.