Hi guys I just filed my rod business on the 12th basically in order to obtain wholesale discount pricing. Mudhole is telling me that I need to also provide them with a copy of my resale tax certificate. Can anyone elaborate on this? I’m from NY. Do I really need this? I can’t see myself selling more than a few rods a year. Thanks!

If you sell even one rod, then you need one.

The requirements vary state by state since reselling/wholesale/sales tax, etc., are state rather than federal issues.Check with the New York Department of Revenue and they'll be able to advise you.

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Don't forget if you are selling rods you have to pay Federal Excise tax. You don't want to mess with them.

See you on the water, Doug
Captain Paddlefoot

You need the resale tax certificate to legally not have to pay tax on components. I don't know what it's called in NY; here it's called a Texas Sales and Use Tax Permit. You don't have to pay taxes on components because you're going to have to charge and pay local and state taxes on the finished rods you sell. You're also going to need and Employer Identification Number from the IRS to start a bank account and pay your quarterly excise taxes (Form 720).

It exempts you from paying sales tax on blanks and components you purchase, not Federal Excise tax. That would require a Federal #637 exemption certificate.

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