How to Get a Resale Certificate in Connecticut

Every business selling taxable goods or services in Connecticut needs a Sales and Use Tax Permit, also called a seller's permit. A resale certificate is a different document: a form a purchaser completes and gives a seller to buy goods for resale without paying sales tax. Without one, you cannot legally collect sales tax from customers. The good news: Connecticut makes the process straightforward. You can file online through the Department of Revenue Services (DRS), pay a one-time $100 registration fee, and then start selling.

This guide walks you through exactly what you need, the step-by-step filing process, timelines, costs, and the most common mistakes to avoid.

What Is a Connecticut Resale Certificate?

The Sales and Use Tax Permit, also called a seller's permit, is your official registration to collect sales tax on behalf of the state. A resale certificate is a separate form: to use one, you must be in the business of selling taxable goods or services and hold a Sales and Use Tax Permit, and the purchaser completes it and gives it to the seller to buy items for resale without paying tax. The permit proves to the Connecticut Department of Revenue Services that you are registered to collect and remit sales tax from customers.

When you hold a valid Sales and Use Tax Permit, you are registered to:

• Collect 6.35% state sales tax (Connecticut's current rate) from customers on taxable sales
• Collect sales tax at the state rates only, because Connecticut has no local sales taxes
• Display your permit number at your business location(s)
• File sales tax returns on the monthly, quarterly, or annual schedule assigned by the DRS

Connecticut sales tax applies to most tangible personal property and many services. However, some items are exempt: groceries, prescription drugs, and certain medical equipment do not trigger sales tax. If you are unsure whether your products or services are taxable, the DRS website provides a detailed list and the DRS can answer questions by phone or email.

Who Needs a Connecticut Resale Certificate?

You need a resale certificate if your business sells any taxable product or service in Connecticut. This includes:

• Retail shops (clothing, furniture, electronics, etc.)
• Food service and restaurants
• Professional services that are subject to tax (such as management consulting, motor vehicle repair, or towing)
• E-commerce sellers shipping to Connecticut customers
• Home-based businesses selling tangible goods
• Subscription or membership services (in some cases)

You do NOT need a Sales and Use Tax Permit if you sell only goods and services that are not taxable. Confirm with DRS whether your specific offerings are taxable. However, many service providers still register because they occasionally sell taxable items or provide mixed-tax services. When in doubt, check with DRS before you start selling. Failure to obtain a required permit carries a fine, and DRS can impose civil penalties of $250 for the first day and $100 for each following day of business without a permit.

Before You Start: What You Will Need

Filing for a Connecticut resale certificate requires basic business information. Gather these materials before you begin:

• Your federal Employer Identification Number (EIN), issued by the IRS. Sole proprietors with no employees sometimes use a Social Security Number instead; confirm what DRS accepts when you register.
• Your Connecticut business address. DRS issues a permit for each location.
• Your business legal name and, if applicable, any trade names (DBA names) you operate under.
• Business structure type: sole proprietorship, partnership, LLC, corporation, or other entity.
• Description of the products or services you will sell.
• Any other business details the registration asks for.
• Your personal contact information: phone number and email address.

If you have not yet obtained an EIN, you can apply for one free through the IRS website (irs.gov) before filing for your resale certificate. The EIN application is quick and you receive your number immediately online.

Step-by-Step: How to Obtain Your Connecticut Resale Certificate

Step 1: Verify Your Business Name is Available and Compliant

Before filing for a sales tax permit, confirm that your business name does not conflict with existing registered businesses in Connecticut. Use the Connecticut Secretary of State business search at https://service.ct.gov/business/s/onlinebusinesssearch.

Search for your exact business name and any variations. If you plan to operate as an LLC or corporation, form the entity with the Secretary of the State first so the name and EIN you give the DRS match your entity.

Step 2: Register Through myconneCT

The Connecticut Department of Revenue Services accepts new business registrations, including the Sales and Use Tax Permit, online through myconneCT, its online portal.

Visit https://portal.ct.gov/drs/sales-tax/tax-information and use myconneCT: under Business Registration, choose "New Business/Need a CT Registration Number?" The portal will guide you through an online form. You will enter:

• Your business name and legal structure
• Your EIN (or SSN if no EIN)
• Business address (must be physical, not a mail drop)
• Mailing address (can differ from business address)
• Phone number and email
• Description of products or services sold
• Any other details the registration asks for
• Ownership information for each owner

Have the information above ready before you start the online registration.

Step 3: Pay the $100 Registration Fee

Connecticut charges a one-time $100 registration fee for your Sales and Use Tax Permit. This is a flat fee, regardless of your business size or sales volume.

The fee is paid with your registration application. Keep your payment confirmation for your records.

Step 4: Receive Your Sales Tax Permit Number

After the DRS processes your registration and payment, you receive your Sales and Use Tax Permit. DRS does not publish a standard processing time on the pages we checked, so contact DRS if you have not received it.

The permit should be displayed conspicuously for your customers to see, and you must obtain a permit for each location. Your permit expires every two years but is renewed automatically by DRS, so keep your contact details current.

Step 5: Set Up Your Tax Remittance Schedule

Once you receive your permit, the DRS will assign you a sales tax filing schedule: monthly, quarterly, or annual. DRS does not explain on its sales tax page how it chooses.

You will file your sales tax return and send payment to the DRS on your assigned due dates. The DRS website shows your filing schedule and due dates in your online account. If your situation changes, ask DRS whether your filing frequency should change.

Timeline and Processing

Here is what to expect after you file:

• Application submission: Instant (if filed online)
• Payment processing: 1 to 2 business days
• Permit issuance: 1 to 3 business days after payment clears
• Permit delivery: Email (immediately upon approval) or mail (5 to 7 business days)

In most cases, you will have your permit number within 3 to 5 business days of filing. If you need your permit urgently, call the DRS at their main phone line or contact them through the Business.CT.gov portal to confirm your application status. Processing is generally faster than you expect, especially if you file online.

Common Mistakes to Avoid

Here are the most common errors that delay or complicate your permit application:

Using a post office box as your business address. Connecticut law requires a physical business address where you actually conduct work. A PO box will cause the application to be rejected. Use your actual store, office, or home address (for home-based businesses).

Missing or incorrect EIN. If you enter your EIN incorrectly, the DRS may reject your application or flag it for manual review. Double-check your EIN before submitting. If you are a sole proprietor and have no EIN, you can use your Social Security Number instead, but an EIN is preferred and free to obtain.

Vague business description. Do not write "retail business" or "services." Be specific: "sale of clothing and accessories," "restaurant and bar," "software consulting." Specificity helps the DRS route your account to the correct department and ensures your filing schedule matches your actual business.

Skipping a return. You must file Form OS-114 for every period DRS assigns, even if you made no sales or owe no tax.

Not displaying your permit once received. DRS says the permit should be displayed conspicuously for your customers to see. Post it where customers can see it.

Filing with the wrong state agency. Sales tax permits come from the Connecticut Department of Revenue Services, not the Secretary of State. The Secretary of State handles business formation (LLC, corporation registration), while the DRS handles tax registration. Use the correct portal and do not confuse the two processes.

What Happens After You Get Your Resale Certificate

Once you have your permit number, you must fulfill ongoing obligations:

Collect sales tax from customers. On every taxable sale, add 6.35% state sales tax to the customer's bill. Connecticut has no local sales taxes, so the state rate (or a special state rate for certain items, such as 7.35% on meals) is the only sales tax you collect. Everything you collect is remitted to the state.

File tax returns on schedule. The DRS will assign you monthly or quarterly filing. You must file a sales tax return on each due date, even if you had no sales that period (you would file a zero return). Late filing and late payment carry penalties and interest. Returns must be filed and paid electronically through myconneCT.

Pay sales tax owed by the due date. Your return shows the total sales tax you collected and any credits or adjustments. You remit this amount by the due date. If you did not collect enough tax (for example, if you accidentally charged a lower rate), you still owe the difference. Late payment carries penalties and interest.

Keep detailed sales records. The DRS may audit your business and will request documentation of your sales, expenses, and tax payments. Keep invoices, receipts, bank statements, and tax returns for at least six years. Organized records make audits faster and protect you if questions arise.

Renew your permit if required. Your permit expires every two years but is renewed automatically by DRS. Keep your registration up to date with DRS if your business address, structure, or ownership changes.

Frequently Asked Questions

Can I apply for a resale certificate before I officially form my LLC or corporation?

Yes. You can apply as a sole proprietor using your Social Security Number before you file formation documents. However, once you form an LLC or corporation, you should update your sales tax permit registration with your new EIN and legal structure. The DRS allows amendments to your permit, and they typically process in 1 to 3 days.

What if I sell both taxable and exempt items?

You still need a resale certificate because you sell some taxable items. You collect tax only on the taxable portion. Keep sales records that separate taxable from exempt sales so your tax returns are accurate.

Is the $100 fee a one-time charge or annual?

It is a one-time fee. You do not pay it again unless your permit is revoked and you reapply. There is no annual renewal fee for Connecticut sales tax permits.

How do I display my sales tax permit?

Print your permit certificate or permit number and post it in a visible location at your business. For home-based businesses, keep it with your business records where you can produce it if the DRS or a customer requests it. The law requires you to have it displayed or readily available, not hidden in an office file.

What if I move my business to a different Connecticut address?

File an amendment to your sales tax registration with your new address. Use the DRS website to update your registration. This typically takes 1 to 2 business days. Do not wait to notify the DRS if you move, as mail sent to your old address could cause you to miss important notices.

Do I need a separate permit for each location if I have multiple stores?

No. One sales tax permit covers all of your business locations in Connecticut. However, you must list each location when you apply or update your registration. The DRS may assign you separate account numbers per location for reporting purposes, but you file one sales tax return that includes all locations unless directed otherwise.

Key Takeaways

Getting a Connecticut resale certificate is straightforward and essential for any business selling taxable goods or services in the state. File online through the Department of Revenue Services, pay a one-time $100 fee, and you will have your permit within a few days. Use your permit number to legally collect sales tax from customers and meet your ongoing tax filing obligations. Keep accurate records, file on schedule, and update the DRS if your business information changes.

Disclaimer: This article is informational and does not constitute legal or tax advice. Sales tax rules can be complex and vary by business type, product category, and municipality. For guidance specific to your business, consult a Connecticut CPA or tax attorney, or contact the Connecticut Department of Revenue Services directly at https://portal.ct.gov/drs or by phone.