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how to get a wholesale license in utah

To obtain a wholesale license in Utah, you’ll need to follow specific steps and meet the requirements set by the Utah State Tax Commission. A wholesale license, also known as a sales tax license or a seller’s permit, allows you to buy goods at wholesale prices without paying sales tax and collect sales tax from customers when you sell taxable items. Here’s how to get a wholesale license in Utah:

  1. Determine Your Eligibility:
    • Wholesale licenses are typically issued to businesses engaged in the sale of tangible goods for resale. Ensure that your business qualifies for a wholesale license based on the nature of your operations.
  2. Register Your Business:
    • Before applying for a wholesale license, make sure your business is properly registered with the Utah Division of Corporations, part of the Utah Department of Commerce. You may need to choose a business structure (e.g., sole proprietorship, LLC, corporation) and register your business name if required.
  3. Obtain an EIN (Employer Identification Number):
    • If your business is not a sole proprietorship and has employees, you’ll need an Employer Identification Number (EIN) from the IRS. You can apply for an EIN online through the IRS website.
  4. Visit the Utah State Tax Commission Website:
    • Go to the Utah State Tax Commission’s website (tax.utah.gov) to access the online registration portal.
  5. Create a Taxpayer Access Point (TAP) Account:
    • You’ll need to create a TAP account if you don’t already have one. This account allows you to manage your tax-related information online.
  6. Complete the Sales and Use Tax Registration:
    • Log in to your TAP account and select “Sales and Use Tax Registration.” Fill out the required information about your business, including its legal structure, ownership details, and contact information.
  7. Provide Information About Your Business Activities:
    • Describe the nature of your business activities, including the types of goods you plan to sell and whether you’ll engage in any taxable activities beyond wholesale purchases.
  8. Submit the Application:
    • Review your application for accuracy, and then submit it through the TAP portal. You may need to pay a small fee for the application, which can vary based on your specific circumstances.
  9. Await Approval:
    • The Utah State Tax Commission will review your application. Approval times can vary, but you will receive your wholesale license once your application is processed and approved.
  10. Display Your License:
    • Once you receive your wholesale license, make sure to display it prominently at your place of business as required by Utah tax regulations.
  11. Comply with Filing and Reporting Requirements:
    • After obtaining your wholesale license, you’ll be responsible for collecting and remitting sales tax from your customers. Make sure to file your sales tax returns and pay the taxes to the Utah State Tax Commission according to the specified schedule.
  12. Renew Your License:
    • Be aware of the renewal requirements for your wholesale license, as it may need to be renewed periodically.

Remember that it’s important to stay informed about changes in tax regulations and compliance requirements in Utah. You may need to consult with a tax professional or the Utah State Tax Commission for specific guidance related to your business.

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