A Texas resale certificate lets your LLC buy inventory and goods for resale without paying sales tax at the time of purchase — because you'll collect and remit the tax when you sell to your end customers. You hand this certificate to your supplier instead of paying sales tax upfront. Misuse it for personal purchases and you face unpaid tax, a 10% penalty, and potential fraud charges. This guide explains exactly how to fill one out and use it correctly. It should take about 10 minutes.

Step 1: Confirm you have an active Texas Sales Tax Permit

Before you can issue a valid resale certificate, you must hold an active Texas Sales Tax Permit issued by the Texas Comptroller. Texas does not issue a separate "resale permit" — your Sales Tax Permit number is what you put on the certificate.

If you don't have a permit yet, apply for a Texas Sales Tax Permit first. The application is free and processed at comptroller.texas.gov/taxes/permit/. You'll typically receive your permit number within a few business days of a complete application.

Common mistake: Many new LLC owners think they need a special resale permit separate from their sales tax permit. There is no such thing in Texas. Your Sales Tax Permit is your authority to buy for resale. If your permit is suspended or your entity's rights are forfeited, your resale certificates are invalid.

To check whether your permit is active, log into eSystems or call the Comptroller at 800-252-5555.

This step should take about 2 minutes.

Step 2: Get the right form

Texas has one official resale certificate form: Form 01-339, Texas Sales and Use Tax Resale Certificate. Download it from the Comptroller at comptroller.texas.gov/taxes/sales/forms/.

You can also use the Multistate Tax Commission Uniform Sales & Use Tax Resale Certificate if you purchase from suppliers in multiple states. Texas accepts it. However, if you're dealing exclusively with Texas suppliers, Form 01-339 is cleaner and removes any ambiguity.

Some large suppliers have their own resale exemption request forms — these are acceptable as long as they capture the same information: your business name, your Texas Sales Tax Permit number, a description of the items being purchased for resale, and your signature.

This step should take about 2 minutes.

Step 3: Fill out Form 01-339

The form is straightforward. Here's each field:

1. Name of purchaser — your LLC's legal name as registered with the Texas Secretary of State (not your DBA name).
2. Texas Sales and Use Tax Permit Number — your 11-digit permit number. Find it on your permit certificate or inside eSystems.
3. Address — your LLC's registered business address.
4. Description of items to be purchased — be specific. Write what you are actually buying for resale (e.g., "wholesale clothing," "electronic components," "office supplies for resale"). Do not write "all items" — an overly broad description weakens the certificate's protection for the supplier and invites scrutiny.
5. Name of seller — the supplier you are giving this certificate to.
6. Purchaser's signature and date — must be signed by an authorized representative of the LLC (a member, manager, or officer).

Common mistake: Leaving the description field vague or blank. Suppliers can refuse to accept incomplete certificates, and the Comptroller can disallow the exemption if the certificate doesn't clearly describe what was purchased.

This step should take about 5 minutes.

Step 4: Give the certificate to your supplier

Hand the completed Form 01-339 to your supplier before or at the time of purchase. You do not file this form with the Comptroller — it goes directly to the seller. The supplier keeps it in their records as documentation that they were not required to collect sales tax on the sale.

You can provide a resale certificate:

• Physically — printed and signed
• Electronically — a scanned signed copy is acceptable
• Blanket certificate — one certificate on file with a supplier covers all future qualifying purchases from that same supplier. You don't need to provide a new one for every transaction.

Keep a copy of every resale certificate you issue. The Comptroller can audit your purchases, and you'll need to prove each tax-free purchase was legitimately for resale.

This step should take about 2 minutes.

Step 5: Collect and remit sales tax on the final sale

A resale certificate only defers the sales tax — it doesn't eliminate it. When you sell those goods to your end customers in Texas, you must:

1. Collect the appropriate Texas sales tax (state rate 6.25% + applicable local rates, up to 8.25% combined)
2. Report and remit that tax on your periodic Texas sales tax return by the 20th of each reporting period

If you buy items tax-free using a resale certificate and then use them for your own business operations instead of reselling them, you owe use tax on those items at the same rate as sales tax. Report use tax on your regular sales tax return under "taxable purchases subject to use tax."

Common mistake: Using resale certificates to buy supplies your business consumes (printer paper, cleaning products, business equipment) rather than goods you actually resell. These are not eligible for resale exemption. A Texas LLC compliance checklist can help you track all your tax obligations in one place.

This step is ongoing — part of your regular compliance cycle.

Quick reference

Frequently asked questions

What is a Texas resale certificate?

A Texas resale certificate is a document you give to a supplier that authorizes them to sell you goods without collecting sales tax — because you will collect and remit the tax when you resell those goods to your customers. Texas does not issue a separate resale permit. Your active Sales Tax Permit number is your authority to buy for resale. The form to use is Form 01-339 from the Comptroller.

What happens if I misuse a Texas resale certificate?

Using a resale certificate to buy items for personal use or for use in your business operations (rather than for resale) is misuse. The Texas Comptroller can assess the full sales tax that should have been paid, plus a 10% penalty and accrued interest. Intentional misuse is treated as tax fraud under the Texas Tax Code, which can escalate to criminal charges. Always use resale certificates only for goods you will actually sell to customers.

Does my Texas resale certificate expire?

Texas does not set a fixed expiration date on resale certificates. A certificate remains valid as long as your Texas Sales Tax Permit is active and your LLC's right to transact business in Texas has not been forfeited. If your permit lapses or your entity is forfeited for non-filing of franchise tax or PIR, certificates issued under that permit become invalid. Some suppliers request updated certificates periodically — this is their prerogative.

Can I use an out-of-state resale certificate in Texas?

Texas has reciprocal agreements with certain states and accepts their certificates. However, acceptance varies by state and the safest approach is to use Form 01-339 or the Multistate Tax Commission Uniform Resale Certificate when buying from Texas suppliers. Out-of-state businesses with Texas Sales Tax Permits must still use their Texas permit number on any certificate presented to Texas suppliers.

Do I have to file the resale certificate with the Texas Comptroller?

No. You give the resale certificate to your supplier — not to the Comptroller. The supplier retains it as documentation of the exempt sale. You keep a copy for your own records. Your obligation to the Comptroller is to have an active permit, correctly report your total taxable sales (which excludes sales-for-resale purchases), and remit the tax you collect on your final sales to customers.

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Last verified: 2026-05-17

Sources: Texas Comptroller — Sales Tax Exemptions · Form 01-339 · Texas Sales Tax Permit