Dear Client,
For whatever state we will be shipping your goods into: You will need to apply for a TAX ID number if you don't already have one.
For states Ad Magic has Nexus in (CA, IL, NH, NJ, NY, NYC, PA and TX.), you will need to also send us a copy of your resale certificate so that we are not required to charge you sales tax.
We can wait for you to get us the certificate - as long as you show us you have applied for one on the state website.
For states Ad Magic does not have nexus in - we don't need a copy of your resale certificate - and we won't be required to charge you sales tax - but you will need to apply for a resale certificate as a part of doing business.
The law is this:
What generates Nexus are the following things:
- ECONOMIC NEXUS - having a certain dollar amount of sales in a state
OR
- PHYSICAL NEXUS - inventory (physical goods) in a state - an employee, a facility, or warehouse.
While you do may not meet the financial nexus of a state - you will have inventory there so you WILL have Nexus there. This is why you will need a TAX ID number for that state.
If you will be storing goods in NJ at Blackbox (and are located in another state) you will have physical nexus in NJ and need to register your business in NJ and also register for sales tax.
To register your out of state business in NJ, please go to this site and register your business
https://www.njportal.com/DOR/BusinessFormation/CompanyInformation/BusinessName
Then, go to this link to register for sales tax in NJ
https://www1.state.nj.us/TYTR_BusinessFilings/jsp/common/Login.jsp?taxcode=55
To make things a bit more confusing - the requirements for Nexus differ from state to state. But one thing is consistent - In every state that collects sales tax (which is EVERY STATE EXCEPT Alaska, Delaware, Montana, New Hampshire and Oregon) - you must have a resale certificate if you will have goods in that state.
All states with sales tax have physical nexus laws. Physical presence is established by more than just offices. Inventory in a marketplace warehouse can establish a physical tie. Remote employees may create physical presence nexus.
So again, when we are shipping to a state where we have Nexus we need a copy of your certificate for that state from you - if WE DONT HAVE NEXUS - you will still need the certificate but we won't need a copy of it.
Here are the states Ad Magic has nexus in:
CA, IL, NJ, NY, NYC, PA and TX.
Here are the links to register for sales tax if you are shipping into any of these states with us:
- California
https://www.cdtfa.ca.gov/taxes-and-fees/sutprograms.htm - Pennsylvania
https://mypath.pa.gov/_/ - New Jersey
This is the actual NJ link to get registered
And this below is the EXACT LINK for COMPANIES NOT LOCATED IN NJ TO REGISTER FOR NJ SALES TAX
https://navigator.business.nj.gov/onboarding?flow=out-of-stateExtra reading material
Blogpost about NJ sales tax. - New York
https://www.tax.ny.gov/bus/st/register.htm - Illinois
https://tax.illinois.gov/businesses/registration.html - Tennessee
https://tntap.tn.gov/eservices/_/ - Texas
https://comptroller.texas.gov/taxes/permit/
Please feel free to contact us with any added questions.
Thank you!
The Ad Magic Team