When you start a business or begin to sell products, you will need a seller’s permit. A seller’s permit is a permit you apply for from your state to allow you to sell products or services and collect sales tax. The purpose of a seller’s permit is to allow the state to control the process of collecting, reporting, and paying sales tax in that state.

A seller’s permit may also be called a “resale permit, resell permit, permit license, reseller permit, reseller number, resale ID, state tax ID number, reseller license permit,” or certificate of authority, depending on your state.

Most businesses must deal with sales tax on taxable products and services by collecting taxes from customers, reporting on those taxes, and paying them to their state. Sales tax is a trust fund tax because your business collects it on behalf of the state, your business holds it in trust, and you must turn it back to the state.