How to Get a Resale Certificate in Utah

How to Get a Resale Certificate in Utah

How to Get a Resale Certificate in Utah

If you're starting a retail business or selling goods in Utah, you'll need a Utah sales tax license, often called a sales tax permit or seller's permit. Utah does not issue a separate resale certificate. Instead, you give your suppliers a signed exemption certificate (Form TC-721) that shows your sales tax license number, which allows you to purchase inventory for resale without paying sales tax upfront, since your customers will pay tax when they buy from you. Without it, you'll pay tax on wholesale purchases and then collect it again from customers, eating into your margins.

Utah's State Tax Commission issues sales tax licenses to any business with an "established presence" in the state. You apply online through the Taxpayer Access Point (TAP), and the Tax Commission reviews the application.

What You'll Need Before You Apply

Gather these items before sitting down to complete your application:

  • A registered business entity (if structured as LLC, corporation, or partnership). Sole proprietors can apply under their Social Security Number, but registered entities need their federal EIN (Employer Identification Number) from the IRS.
  • A physical street address in Utah where your business operates or stores inventory. If you operate from home, use your residential street address. If you're renting retail space, use the storefront address.
  • Your Social Security Number or EIN. The Tax Commission uses this to issue and track your permit.
  • Expected monthly sales volume estimate. This helps the state understand your business size, though estimates can be revised later.
  • A description of what you're selling. Be specific: "Women's apparel and accessories" or "HVAC equipment and parts," not just "Retail."
  • Your phone number and email. The Tax Commission may contact you with questions or if your application needs clarification.

Step-by-Step Instructions

Step 1: Register Your Business with the State (If Not Already Done)

If you're operating as an LLC or corporation, you must file a formation document with the Utah Division of Corporations and Commercial Code before applying for a sales tax permit. Sole proprietors skip this step unless they're using a DBA (Doing Business As name).

LLCs file a Certificate of Organization and pay a $59 filing fee. Corporations file Articles of Incorporation with the same fee. If you're using a business name that's different from your legal name, file an Assumed Name (DBA) registration for $22.

File online at businessregistration.utah.gov using your UtahID login, or mail paper forms to the Division. Most online filings are approved instantly or within 2 to 4 business days.

Step 2: Obtain Your EIN (If Applicable)

If your business is an LLC, corporation, partnership, or any entity other than a sole proprietorship, you need a federal Employer Identification Number from the IRS. Sole proprietors can use their Social Security Number instead.

Apply for an EIN free online at irs.gov/ein. You'll receive your EIN immediately if you apply online. If you mail an application (Form SS-4), approval takes about 4 weeks.

Step 3: Go to the Utah State Tax Commission Online Portal

Navigate to tap.tax.utah.gov/TaxExpress. This is the state's online portal for applying for a sales tax license. The application is Form TC-69, which you complete in TAP.

Step 4: Complete the Online Application

The online application asks for details such as the following (the TAP screens show exactly what is required):

  • Legal business name. The name on your formation documents or your personal name if you're a sole proprietor.
  • DBA (if any). The name you do business under if it differs from your legal name.
  • Your business structure. Select Sole Proprietorship, LLC, Corporation, Partnership, etc.
  • EIN or SSN. Provide your federal Employer Identification Number or Social Security Number.
  • Utah street address. The physical location where you conduct business or store inventory.
  • Mailing address. Can differ from your business address.
  • Ownership and management information. Names and titles of owners or managing members.
  • Business description. Describe what you sell or the services you provide.
  • Expected monthly sales. Your best estimate of average monthly revenue. You can update this later if your actual sales differ.
  • Start date. When you plan to begin operating in Utah.

Review the information for accuracy before submitting.

Step 5: Pay Any Required Fees

The Tax Commission lists no fee for a sales tax license, and Utah issues no separate resale certificate; check the TAP application screen for any charge. However, your city or county issues the business license and sets its own fee. That's a separate process handled at the local level, not by the state.

If you're hiring employees, you'll also need to register for unemployment insurance with the Utah Department of Workforce Services, but that's done separately.

Step 6: Receive Your Permit Number

Once you submit your application online, the Tax Commission reviews it and issues your Sales Tax License Number (sometimes called your seller's permit number). Check TAP for the status of your application.

This is the number you'll provide to your suppliers when purchasing inventory for resale. Write it down and keep it handy. You'll enter it on the exemption certificate (Form TC-721) every time a wholesaler asks for proof that you don't owe sales tax on bulk purchases.

Step 7: Apply for Any Required Local Business Licenses

After the state approves your sales tax license, check with your city or county to see if they require a local business license. Requirements vary widely. Fees and rules are set by each city, town or county. Utah has no statewide general business license, so the license comes from the city or town inside its limits, or from the county outside them.

Contact the city clerk or business licensing department in the city where you're operating. They'll tell you what's required and the fee.

Tips to Avoid Common Mistakes

  • Use a real street address, not a PO box. Give the physical location where your business operates or where inventory is stored, and use a separate mailing address only if the application asks for one.
  • File your business formation documents first. If you're an LLC or corporation, register with the state before applying for your sales tax permit. Use the same legal name on your state registration and your tax account application.
  • Get your EIN before applying if you're not a sole proprietor. Having your federal EIN ready when you fill out the tax permit application speeds things up.
  • Provide a detailed business description. "Retail" or "Goods" is too vague. Say "Women's athletic apparel and footwear" or "Commercial HVAC parts and equipment."
  • Update your expected sales if they change significantly. If you estimated $5,000 per month but you're actually doing $50,000, update your permit.
  • Don't confuse a resale certificate with a business license. Your sales tax license is a state tax registration. A business license is issued by your city or county. You need both, they serve different purposes.
  • Keep your account information current. If your address, ownership or business details change, report it to the Tax Commission through your TAP account. Ask the Tax Commission whether your license needs renewal.

What Happens After You're Approved

Once you have your sales tax license number, you can buy inventory for resale without paying sales tax by giving the supplier a completed exemption certificate (Form TC-721) that shows your license number. The supplier keeps the certificate and doesn't charge you sales tax on that transaction.

You then collect sales tax from your customers when they buy from you. Utah's state sales tax rate is 4.85 percent (1.75 percent on grocery food). However, combined state and local rates vary by location, they run from 6.35 percent to 9.55 percent, and up to 10.05 percent in some special districts, depending on where the sale happens.

You must file sales tax returns with the Utah State Tax Commission. The filing schedule depends on your sales volume:

  • Quarterly returns: Annual sales tax liability of $50,000 or less.
  • Monthly returns: Annual liability of $50,001 to $96,000.
  • Monthly returns with mandatory electronic payment: Annual liability of $96,001 or more.

File online at tap.tax.utah.gov/TaxExpress. Returns and payments are due on the last day of the month after the end of your filing period (for example, April 30 for the first quarter). New businesses estimate their liability when applying and are assigned a filing status, which the Tax Commission reviews each year.

When to Consult a Professional

The resale certificate application itself is straightforward and most businesses can complete it without help. However, consider consulting a CPA or tax attorney if:

  • Your business structure is complex (multiple owners, partnerships, S-corps, etc.) and you're unsure which EIN and ownership information to provide.
  • You're selling from multiple locations and are unsure how to report each one to the Tax Commission.
  • You're selling items that might have special sales tax treatment (groceries, pharmaceuticals, certain services). Some goods are taxed differently in Utah.
  • You're unsure whether your business owes other state taxes (like corporate income tax or franchise tax).
  • You're an out-of-state business shipping to Utah customers and need guidance on nexus and remote-seller obligations.

This content is informational only and is not legal or tax advice. For guidance specific to your business, consult a qualified CPA or attorney licensed in Utah.

Key Resources

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