How to Get a Resale Certificate in Mississippi

Suppose you’re starting a limited liability company (LLC) in Mississippi and planning to sell goods subject to sales tax. In that case, you’ll need to get a resale certificate, or several of them, before doing business. 

But don’t worry; this guide lays out all you need to do to get a resale certificate in Mississippi.

What Is a Resale Certificate? 

If your LLC expects to sell tangible goods in Mississippi, a resale certificate will enable you to purchase those goods without paying sales tax. This prevents your goods from being double taxed, as you will need to charge your customer’s sales tax when they buy the goods. 

In Mississippi, your sales tax permit will serve as your resale certificate. 

If you purchase goods without paying sales tax and neglect to charge sales tax to customers who buy those goods, or if you fail to sell the goods, you and your LLC will be responsible for the sales tax and could face steep fines. 

If you purposely purchase an item not intended for resale, such as office equipment, and use your sales tax permit to avoid paying sales tax, that’s tax fraud, a federal offense. 

In Mississippi, the penalty for tax fraud is repayment of the tax owed plus interest and possibly a $500,000 fine and five years in prison. 

Each sales tax permit applies to only one vendor, so you’ll need one for each vendor. 

Suppliers and vendors do not have to accept sales tax permits. However, a vendor might refuse because the vendor would be responsible for the sales tax if your permit is invalid.

How to Obtain a Sales Tax Permit in Mississippi

Again, your sales tax permit will serve as your resale certificate. To obtain your sales tax permit in Mississippi, visit the Department of Revenue website to register for a tax account. 

Once you have your sales tax permit, present a copy to your vendor and keep a copy for your records.

Does a Sales Tax Permit Expire in Mississippi?

In Mississippi, sales tax permits do not expire, so you can continue to use a copy as your resale certificate as long as you’re in business.

In Closing 

In Mississippi, a sales tax permit is relatively easy to obtain yet provides significant savings. It will also help you and your LLC avoid potentially substantial penalties. 

Be sure to present the correct certificate to your vendors and keep track of expiration dates so your certificates are always current. You don’t want to find yourself paying sales tax when you don’t have to.