Hi everyone,
Is anyone selling in the US market using a Canadian corporation and no US company? If a Canadian corporation wants to purchase in wholesale from a distributor in Texas, or New York, how can I give them the resale certificate to purchase the product without paying sales tax?
The TX supplier needs to ship the order to a TX prep center, and the NY supplier needs to ship the order to a NY prep center.
I would be careful about simply choosing another state solely to obtain a resale certificate. A Wyoming LLC does not automatically mean Wyoming is the correct state for sales-tax registration, and Amazon storing your FBA inventory in different states can complicate the nexus analysis.
The correct state depends on where your business actually has sales-tax nexus and also on the rules of the state connected with the wholesale transaction. Some states require you to hold their own sales-tax registration to claim a resale exemption, while others may accept an out-of-state resale number. The Multistate Tax Commission specifically confirms that these requirements vary considerably between states.
There is also a Multijurisdictional Uniform Resale Certificate accepted in some form by many states, but it does not magically create a resale exemption where you are not otherwise eligible, and individual wholesalers may have their own requirements.
I would therefore speak with a US sales-tax professional who understands Amazon FBA and establish where your business actually needs or is entitled to register before applying anywhere. Registering randomly in another state just to obtain a resale number can create filing obligations and potentially additional compliance problems that you did not previously have.