You’ve probably heard of dropshipping by now – it’s all the rage. And for good reason too! Dropshipping is a fantastic business model that allows entrepreneurs to start and grow their businesses with very little upfront investment. But if you’re thinking of starting a dropshipping business in Louisiana, you might be wondering – do you need a resale permit? The short answer is no, you don’t need a resale permit in Louisiana to dropship. But there are a few other things you should know about starting a dropshipping business in Louisiana, so read on for more information!
Do You Need A Resale Permit In Louisiana?
As a business owner in Louisiana, you are required to collect and remit state sales tax on all taxable sales made within the state. This includes sales made online, through a catalog, or in person. If you sell taxable goods or services and don’t have a Louisiana resale permit, you may be subject to penalties.
To obtain a Louisiana resale permit, you must first register your business with the Louisiana Department of Revenue. You can do this online, by mail, or in person. Once your business is registered, you will be issued a resale permit number. This number allows you to purchase taxable goods and services for resale without paying state sales tax.
If you’re dropshipping products from out-of-state suppliers, you’ll need to provide your supplier with your Louisiana resale permit number. They will then be able to ship the products to your customers without charging them state sales tax. Be sure to keep your resale permit number up-to-date and active, as it expires every three years.
If you have any questions about whether or not you need a Louisiana resale permit, contact the Department of Revenue’s Taxpayer Assistance Division at 225-219-7462
How to Get a Louisiana Resale Permit
In Louisiana, a resale permit is required for businesses that intend to resell merchandise. The state imposes a 4% sales tax on the retail sale of most goods and services. Businesses that have a resale permit can purchase merchandise from suppliers without paying sales tax on the items. Instead, they collect the sales tax from their customers when they resell the items.
To obtain a Louisiana resale permit, businesses must first register with the Louisiana Department of Revenue. Businesses can register online or by mailing in a completed application. After registering, businesses will receive a confirmation letter from the Department of Revenue. This letter will include information on how to obtain a resale permit.
To apply for a resale permit, businesses must complete an application and submit it to the Department of Revenue. The application must include the business’s name, address, and contact information. The business must also provide information on the type of business it plans to operate and the types of merchandise it intends to sell. Once the application is submitted, businesses will receive their resale permit within 10 days.
Dropshipping in Louisiana
Dropshipping is a process whereby an online retailer orders inventory from a supplier and has the supplier ship the products directly to the retailer’s customer. Dropshipping is often used by online retailers who do not have the space or resources to keep inventory on-hand.
In Louisiana, you does not need a resale permit for dropshipping. However, you will need to register your business with the Louisiana Secretary of State and obtain a Business License from the Louisiana Department of Revenue.
Conclusion
Dropshipping is a great way to start an online business with little upfront investment, and in most cases you won’t need a resale permit. However, there are some instances where you might need one, so it’s always best to check with your local authorities to be sure. In Louisiana, for example, you’ll need a resale permit if you’re dropshipping from out of state or if you’re selling certain types of items. But as long as you stay within the guidelines, starting a dropshipping business in Louisiana is relatively easy and can be quite profitable.
