Here are the steps you need to take to start a limited liability company (LLC) in NewHampshire: Choose a name for your New Hampshire LLC: Yourb ...
How to Get a Certificate for Resale in New Hampshire
Written by: Coralee Bechteler
Coralee is a business writer with experience in administrative services, education, and software testing.
Edited by: David Lepeska
David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.
Published on July 13, 2022
If you have recently launched or are planning to launch a business that will sell products or services in New Hampshire, you may be wondering about the state’s protocol regarding certificates for resale – commonly known as a resale certificate in most other states.
The majority of states in the U.S. have a sales and use tax, so businesses in those states that obtain a certificate for resale have the potential to save a lot of time and money.
New Hampshire has no sales and use tax, so its Department of Revenue does not administer any sales tax permits or certificates for resale.
In this simple step-by-step guide, we’ll walk you through what you can do to facilitate a transaction if a seller requires verification that your business has no need for an exemption document.
What is a Certificate for Resale?
In states that do have a sales tax, LLCs with a valid certificate for resale can buy goods from a wholesaler without paying that tax, though they may still have to pay a use tax. Depending on a business’s size, these certificates can save tens of thousands of dollars annually.
The catch is that whenever businesses do use a certificate for resale to purchase goods, they’re legally bound to resell those items and collect sales tax when they do so. If they don’t resell those items, or fail to collect sales tax, the punishments often include liability for the sales and use tax, additional fines, and penalties.
Similarly, businesses in these states cannot use a certificate for resale to buy items they don’t intend to sell, such as office equipment. That would be tax fraud, a felony offense. Businesses can only purchase items tax-exempt if they’re going to collect sales tax on them later.
How to Indicate an Intent for Resale in New Hampshire
New Hampshire’s Department of Revenue Administration offers support to any business that experiences resistance from a seller due to not holding and presenting a certificate for resale form.
To prepare to make a purchase intended for resale, here are some steps you can take:
- Visit and review this New Hampshire state webpage.
- Print at least one copy of the page.
- You can now proffer your printed document to any seller who needs verification concerning the issuance of certificates for resale in New Hampshire.
Businesses in New Hampshire can also create a new phone contact for quick and easy access to the number vendors can call for further explication:
If you would like any assistance regarding certificates for resale, you can contact New Hampshire’s Department of Revenue Administration at the number below:
Phone: 603.230.5000
Hours: Monday through Friday, 8:00 AM – 4:30 PM
Conclusion
Though other states necessitate certificates for resale, New Hampshire does not issue any certificates for resale because it has no sales tax. To best ensure smooth business transactions, always take the time to confirm you’ve packed a copy of New Hampshire’s webpage on certificates for resale.
How to Get a Certificate for Resale in New Hampshire
- What is a Certificate for Resale?
- How to Indicate an Intent for Resale in New Hampshire
- Conclusion
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