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Do I have to collect sales tax if I drop ship?

Sales tax & state compliance

If you have nexus in the customer's state, yes. Drop shipping does not remove the obligation, it just means someone else ships the goods.

The arrangement creates a second question too, whether your supplier charges you tax on the wholesale purchase, which a resale certificate addresses.

We handle this for founders running US companies.

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Check your EIN confirmation letter (CP 575) first. If that is gone, look at a previously filed tax return, a business bank account application, or any 1099 you have issued. Your bank or your payroll provider will also have it on file.

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