How To Get AWholesale License in North Carolina.

When starting a business in North Carolina, you have two options for obtaining a wholesale license. You can apply directly to the North Carolina Department of Revenue, or you can save time by using the expedited online application services available from FastFilings. First, however, it is important to be clear on what is a wholesale license, and when you might need one.

What Is a North Carolina Wholesale License?

A North Carolina wholesale license, officially referred to as the Certificate of Registration, is essential for any North Carolina business engaging in taxable sales and transactions within the state. It grants businesses the authority to collect sales tax from customers and remit it to the North Carolina Department of Revenue.

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This type of license is often called a “seller’s permit.” Across the U.S., it is commonly known by various other names, depending on state, such as:

Wholesale License
Reseller Permit
Resale Permit
Sales and Use Tax Permit
Sales Tax ID
Sales Tax Permit
Business Tax Registration Number

Despite the terminology differences, the purpose always remains the same: ensuring businesses comply with state tax laws by properly collecting and remitting sales tax. In North Carolina, the Certificate of Registration is generally a cornerstone of operating a legally compliant business.

How do you get a wholesale license? Obtaining this license involves registering with the North Carolina Department of Revenue by submitting a Business Registration Application (Form NC-BR). The Certificate will include the business’s unique Sales and Use Tax Account ID number from the Department of Revenue. FastFilings’ online ordering platform provides the easiest way to apply for a wholesale license.

A business’s Certificate of Registration does not have a specific expiration date, but it can become void in cases of inactivity (no reported sales for 18 months) or a change of ownership.

What Are the Benefits of Having a Wholesale License in North Carolina?

Having a North Carolina wholesale license, or Certificate of Registration, offers several advantages for businesses operating in the state, such as:

Legal Authorization to Collect Sales Tax
Businesses with a Certificate of Registration are authorized to collect sales tax from their customers. This ensures compliance with North Carolina law and avoids penalties for unregistered businesses.
Tax-Free Wholesale Purchases
One important benefit of a wholesale license is the ability to purchase goods intended for resale without paying sales tax at the time of purchase. By providing suppliers with Form E-595E, businesses can demonstrate their tax-exempt status for qualifying transactions.
Improved Recordkeeping and Credibility
A Certificate of Registration can simplify recordkeeping for tax purposes, ensuring that all sales tax is collected and remitted according to state requirements. Furthermore, having this license enhances credibility when dealing with suppliers and customers.
Streamlined Expansion Opportunities
For businesses looking to expand into North Carolina from other states, obtaining a Certificate of Registration aids integration into the local market.

Overall, a wholesale license provides multiple benefits that most types of business can’t do without.

What’s the Difference Between a Seller’s Permit and a Resale Certificate?

Although often confused with each other, a North Carolina seller’s permit (Certificate of Registration) and resale certificate serve different purposes. While the Certificate of Registration authorizes a business to collect sales tax from customers and remit it to the state, a resale certificate is a document that a business provides to its supplier to purchase goods tax-free. It certifies that the goods being purchased are intended for resale and not for personal or business use by the purchaser, and legally allows the purchaser to avoid paying sales tax for that transaction.

To illustrate: Sally is starting an arts and crafts supply business. She wants to purchase goods from various suppliers and vendors that she intends to sell in her store. By using a NC resale certificate, she does not pay sales tax on goods she purchases to stock her store. When Sally sells arts and crafts supplies to her customers, she collects the sales tax for that transaction. She then submits the sales tax collected to the North Carolina Department of Revenue.

In North Carolina, the Streamlined Sales and Use Tax Certificate of Exemption (Form E-595E) is used as a resale certificate. Businesses must have a valid Certificate of Registration in order to use Form E-595E to claim the right to purchase goods on a tax-free basis.

Who Needs a Wholesale License in North Carolina?

In North Carolina, the Certificate of Registration is required for many, but not all, businesses.

Required:

Retailers and Wholesalers
Businesses engaged in selling tangible goods, taxable services, or digital products at retail or wholesale must obtain a Certificate of Registration. This includes stores, online sellers, and service providers offering taxable services such as repair, maintenance, or dry cleaning.
Marketplace Facilitators
Entities facilitating sales for third-party sellers, such as online marketplaces, are required to register for and remit sales tax on behalf of their sellers.
Remote Sellers
Out-of-state businesses with gross sales exceeding $100,000 sourced to North Carolina in the current or previous calendar year must register to collect and remit sales tax.
Businesses Engaging in Specialty Transactions
Companies renting accommodations, selling service contracts, or charging for admissions to entertainment activities also need to register.

Not Required:

Non-Taxable Entities
Businesses exclusively involved in non-taxable activities, such as selling tax-exempt goods or providing non-taxable services, do not require a Certificate of Registration.
Individuals Purchasing for Personal Use
Individuals making personal purchases without a business purpose do not need to register. However, they must pay use tax if sales tax is not collected at the time of purchase.
Wholesalers with No Retail Sales
Wholesale merchants not engaged in retail sales or use-taxable purchases are exempt from filing sales tax returns, though they must still register with the state as a “wholesale-only” business.
Small Remote Sellers Below Threshold
Remote sellers with annual North Carolina-sourced sales below $100,000 are not required to register.

It’s important for businesses to assess their activities carefully to determine whether they need a Certificate of Registration. Operating without one when required can lead to penalties, including fines and back taxes, so it’s better to err on the side of caution and consult state guidelines if uncertain.

How to Get a North Carolina Wholesale License Using FastFilings

Obtaining a North Carolina wholesale license is quick and easy when you get assistance from FastFilings. Simply follow these steps:

Step 1: Gather your business documentation and information.

You will need to have all important information available when filling out your online application. You will need information such as your:

Business name or DBA (Doing Business As)
Business registration license
Email address
Social Security number or Federal Tax ID Number (FEIN)
Information about the responsible party (such as SSN & business title)
Details about the business (such as date of establishment)

Step 2: Complete the online application form.

Using your business documentation and information, complete the secure online form. Using the information you provide, we will prepare the official North Carolina wholesale license application for you.

We will contact you to let you know what information we require if we need any additional information.

Step 3: Wait to receive your NC seller’s permit.

We will notify you once we have submitted your NC seller’s permit application to the state. Once we receive notification your application has been processed by the State of North Carolina, we will send you the certificate.

Why Use FastFilings to Get Your North Carolina Seller’s Permit?

Many business owners find that they can’t spare the time to figure out how to apply for a wholesale license/Certificate of Registration. That’s where FastFilings can help. We handle most of the legwork for you, based on information that you supply, so you can concern yourself with running your business.

Our service is also quicker than submitting the application on your own. Since we deal directly with the state, our processing times are much faster. Furthermore, we guarantee your application is completed correctly and accurately, so there are no surprises or unexpected delays.

For further information about obtaining your wholesale license in North Carolina, please feel free to contact FastFilings directly. If you are ready to get started, simply complete our secure online application form today!

Apply for a North Carolina Wholesale License!

Need help filing your wholesale license in North Carolina?

Get Started!