Why Register For A Tax Resale Certificate In Michigan?

Do Not Overlook Michigan

Michigan might not be the first state you think about to start a small business but it definitely should be at the top of your list. Michigan has a lot of great things to offer new entrepreneurs which include:

  • Reasonable Cost Of Living
  • Nurturing Business Friendly Communities
  • A Good Compensation Model

Reasonable Cost Of Living

The real estate prices in Michigan are actually 400 percent less than the San Francisco and Silicon Valley areas. Michigan is actually one of the most affordable places to live in the United States. The region’s affordability does not mean a sacrifice in the quality of life. Michigan is able to boast of awarding-winning schools, outstanding health care, and vibrant downtowns.

Nurturing Business Friendly Communities

Small businesses make up at least 99.6 percent of all of Michigan’s businesses, and nearly half of residents who work in the private sector are employed by small business owners. Michigan has a business-friendly environment that has supported small business growth. This has led to opportunities abound in the automobile, manufacturing, and cybersecurity industries.

A Good Compensation Model

Michigan has a talented workforce that has a high level of college graduates in the 24-65 age range. Most of the small business owners are required to carry workers’ compensation insurance. Michigan workers’ compensation is a great tool to help shield small businesses when an employee gets injured at the workplace. Workers’ comp provides pay and medical benefits to employees who have a work-related injury.

What is A Tax Resale Certificate?

It is critical that you understand that tax resale certificates can also be used on items that will be resold. Office supplies, such as new computers for your employees, would not fall under the category of retail.  It would be considered fraud not to pay sales tax on these items.

If this is confusing for you, just think of tax resale certificates as state tax exemption certificates.  Some states actually call them exemption certificates or reseller’s permits.

Getting Started In Michigan

In Michigan a tax resale certificate is called aMichigan Sales and Use Tax Certificate of Exemption  Before a business starts to sell any type of taxable products or services,they must first get a Michigan Sales Tax License from the Michigan Department of Treasury. The Sales Tax License is sometimes referred to as a seller’s permit, sales tax number, or sales tax permit and is valid for up to 4 years.

Is The Tax Resale Certificate The Same As A Sale’s Tax License?

It is important not to confuse a tax resale certificate with a sales tax license. A sales tax license allows a retailer to charge tax on items that they are going to sell to a customer. A tax resale certificate allows you to buy items that are intended for resale without paying a sales tax on those items. 

Does A Vendor Have To Accept My Tax Resale Certificate?

It is extremely important to a retailer’s bottom line that they do not pay sales taxes on goods if there is a possibility that the tax can be exempted on a state level. However, it is also crucial to understand that a wholesaler is not required to accept your tax resale certificate in some states. 

Remember To Verify Any Tax Resale Certificate Presented To You

A customer can also present a tax resale certificate to you as a retailer and it is your discretion of whether or not you want to exempt them from the required sales tax. It is always a good idea to check on the certificate because you will be held responsible, if the certificate is expired or fraudulent, for the unpaid state sales tax. Verification is key in making sure that the correct due diligence has been completed to authenticate the tax resale certificate.

  • Make certain that the certificate is properly filled out and signed by the business owner
  • You should be able to verify the certificate online by using the certificate
  • You should also be able to verify online if the certificate has expired
  • Be award of purchase that seem suspicious and do not relate to the customer’s business in a logical manner
  • It is important that you keep the certificate on file for at least 5 years in case of a tax audit.

Make Sure You Understand The Specific Guidelines Of Your State

A tax resale certificate is a wonderful way a business can avoid unnecessary taxes. However, we understand that there are a lot of rules and regulations, which can be very confusing to any business owner.

That Is Why We Are Here To Help

It is understandable that all this information can be very daunting. Not correctly understanding sales tax and the benefits of a tax resale certificate can lead to a great deal of trouble. A retailer could lose out on extremely beneficial sales tax exemptions status. A savvy business owner will understand that having a tax resale certificate will save them a good deal of money but leave the actual headache of registration to someone else.

On the other hand, misunderstanding and not paying the correct sales tax to a state government could very much hurt a business’s standing and reputation. At Tax Resale Certificate,  we make the process as easy as possible. Just take advantage of our user-friendly interface to help take the headache of applying for a tax resale certificate off your plate. 

We Give You The Assistance You Need

At Tax Resale Certificate,  we make the process as easy as possible. Just take advantage of our user-friendly interface to help take the headache of applying for a tax resale certificate off your plate. 

We provide a tax resale certificate for the top states that include:

  • California
  • Texas
  • Massachusetts
  • New York
  • New Jersey
  • Illinois
  • Florida

We know that there is a lot of confusion in the world right now. Luckily, these tax credits will help ease some of the burdens. A tax resale certificate is a fantastic way to make sure your business is in great shape to take advantage of consumer demand once the dust settles. We can make sure that you get all the advantages of a tax resale certificate without having to deal with the hassle of government red tape. Let us handle the hard stuff so you can proceed to run your business with confidence.