Hello everyone,
I have a question about tax-exempt status for online arbitrage in the U.S. We have an LLC set up and all the necessary documents, but I am not sure about the process to actually become tax-exempt with the retailers we buy from. Do we need to apply for a specific certificate, or is there another form we should provide to these retailers to prove our tax-exempt status?
If anyone could explain the steps or share their experience with this, it would be really helpful.
Submit your resale certificate to get tax exempted.
Second option is to use prep centre which is in sales-tax free state so you’ll get rid of sales tax on your all purchases.
In arbitrage model you are aren’t tax exempted at the time of purchasing. Some retailers can exempt tax, but for that you need to contact their representative and ask the relative information.
Prep centre in 0% sales tax states.
They told me Wyoming was tax free, I got my LLC last year but then there is 4% sales tax.
State sales tax is a small issue for Amazon OA sellers, a complete non-issue for WS sellers.
Thanks for info. I want to go completely tax free so will not renew the Wyoming license. Will try one of these other states.
If you have an LLC then surely you have an EIN? I think that you should make a resale certificate yourself download from google and fill out.