Wholesaler responsibilities?

Question

I would be manufacturing and selling my T-Shirts to online retailers who then sell the products to end-users/buyers.

I know retailers have to collect sales/use taxes. Is there a similar responsibility placed on a manufacturer/wholesaler?

What are my sales tax responsibilities? Do I need a permit to operate as a manufacturer/wholesaler? What information do I need to collect from the retailers I do business with? What information must I provide the IRS and State Tax agencies with?

Thanks

Answer 1

Since you are selling your T-shirts to wholesalers that are going to resell them to retailers, you do not need to worry about collecting sales tax on any of your sales since you are reselling your T-shirts. However, if you sell the shirts directly to the end user, then you are responsible for collecting and remitting sales tax on the sales where you are physically located.

For example, if you are located in Illinois, you are responsible for collecting Illinois sales tax. Also, if you go to another state to sell your T-shirts, you are responsible for collecting that state's tax as well. This includes sales made in those states even if they are made via the internet. This also includes sending any third party to solicit sales on your behalf where you are not selling for resale.

The only responsibilty for sales tax that you would have as a manufacturer in most states is to pay tax on items that are not used dierectly and predominantly in the manufacturing process.

As far as your responsibilities, you will need to get a resale certificate from each of your customers for all sales that are intended for resale. Also, if you do have to colect sales tax, you will need to register with each state to be authorized to collect sales tax and pay use tax to the state where your manufacturing facility is located.

Each state has their own laws regarding the information that you need to provide.

Answer 2

Well now, you ought to most commonly suppose it to do it.... so accountability takes a deliberation, first within the center of the problem, as soon as the need is aligned, movements comply with! Love Kar