If you’re starting a limited liability company (LLC) in Wyoming and planning to sell goods subject to sales tax, you’ll need a resale certificate, or several of them, before doing business.
This guide lays out all you need to do to get a resale certificate in Wyoming.
What Is a Resale Certificate?
If you expect to sell tangible goods through your LLC in Wyoming, 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.
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 resale certificate to avoid paying sales tax, that’s tax fraud, a federal offense.
In Wyoming, the penalty for tax fraud is repayment of the tax owed plus a 25% penalty and could result in misdemeanor charges if the amount is less than $500. In addition, you could face a fine of up to $750 and up to six months in prison. If the amount is more than $500, you could be charged with a felony punishable by a fine of up to $5,000 and up to three years in prison.
Each resale certificate applies to only one vendor, so you’ll need one for each vendor.
Suppliers and vendors do not have to accept resale certificates. However, a vendor might refuse a resale certificate if it is invalid, which would make the vendor responsible for the sales tax.
How to Obtain a Resale Certificate in Wyoming
A resale certificate can be downloaded from the Wyoming Department of Revenue Excise Tax Division by selecting “Exemption Certificate.”
Obtaining the certificate is free; you can use the form as soon as it’s filled out.
Once you have the certificate, present it to your vendor and keep a copy for your records.
Does a Resale Certificate Expire in Wyoming?
Wyoming resale certificates do not expire. It’s a good idea to review the certificates every few years to ensure the information is up to date.
In Wyoming, a resale certificate is relatively easy to obtain yet provides significant savings. It will also help you and your LLC avoid potentially significant 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 pay unnecessary sales tax. It is hard to say goodbye.