A seller’s permit (also known as a resale certificate or sales tax permit) is required to collect sales tax from your customers, which you then remit to the state. This permit is different from a business license. If you engage in retail sales, you must register and obtain a sales tax license or seller’s permit—even if you sell products that are exempt from state sales tax.

It’s important to distinguish between product sales and service sales, as services are generally not subject to sales tax in most states. Sales tax rates and regulations vary by state and are typically applied at the retail level. In short, if you sell products, food, or rent goods, you need this permit regardless of where you operate.