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Business Reseller Letter

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BUSINESS RESELLER LETTER

This Business Reseller Letter (the "Agreement") is made effective as of by and between:

RECITALS

WHEREAS, Company develops, markets, and sells the products and services described in Schedule A and desires to authorize Reseller to market, promote and resell such products and services under the terms set forth in this Agreement; and

WHEREAS, Reseller represents that it has the capability, personnel and business contacts to solicit customers for the products and services and desires to obtain a non-exclusive reseller relationship with Company on the terms contained herein.

WHEREAS, Company and Reseller desire to set forth their respective rights and obligations regarding distribution, payment and confidentiality.

SCOPE OF WORK

Reseller is authorized to market, promote and resell the products and services listed in Schedule A on a non-exclusive basis within the Territory defined below. Reseller shall perform all sales, support and customer interface activities in a professional manner and in compliance with Company policies provided in writing.

PAYMENT TERMS

Reseller shall pay Company the consideration described below in exchange for reseller rights. All amounts are payable in lawful currency of the United States unless otherwise agreed in writing.

Late payments shall accrue interest at a rate equal to per month or the maximum rate permitted by law, whichever is lower, calculated from the date payment was due until paid in full. Reseller shall also reimburse Company for all collection costs, including reasonable attorneys’ fees.

TERM AND TERMINATION

This Agreement commences on the Start Date: and continues until the End Date: unless earlier terminated as provided below.

Either party may terminate this Agreement for convenience upon providing days' prior written notice to the other party. Either party may terminate immediately for material breach that remains uncured for 30 days after written notice, or immediately for insolvency or assignment for the benefit of creditors.

CONFIDENTIALITY

For purposes of this Agreement, "Confidential Information" means non-public information disclosed by one party to the other that is designated as confidential or that reasonably should be understood to be confidential given its nature. Confidential Information includes pricing, customer lists, technical data, product roadmaps and business strategies.

Receiving party shall (i) maintain the confidentiality of Confidential Information with at least the same degree of care it uses to protect its own confidential information but no less than a reasonable standard of care; (ii) use Confidential Information only to perform its obligations under this Agreement; and (iii) not disclose Confidential Information to any third party except to employees, agents or contractors who need to know and who are bound by confidentiality obligations at least as protective as those herein. Confidentiality obligations survive termination for a period of three (3) years, except for trade secrets which shall be protected for as long as they qualify as trade secrets.

GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws of the State of without regard to principles of conflict of laws. Exclusive jurisdiction and venue for disputes shall lie in the state or federal courts located in that state unless otherwise agreed in writing.

ENTIRE AGREEMENT

This Agreement, including any schedules and exhibits attached hereto, constitutes the entire agreement between the parties with respect to the subject matter and supersedes all prior and contemporaneous agreements, proposals and communications, whether written or oral. Any amendment or modification must be in writing and signed by authorized representatives of both parties.

ADDITIONAL PROVISIONS

Relationship of the parties: Reseller is an independent contractor and nothing in this Agreement creates an employment, agency, partnership or joint venture relationship. Reseller shall not bind Company by contract or otherwise, and shall have no authority to make representations or warranties on behalf of Company.

Company Printed Name:

By:

Date:

Reseller Printed Name:

By:

Date:

Enter text✕

What a Business Reseller Letter Is and when it’s used

A Business Reseller Letter is a written authorization used by a purchaser to confirm reseller status and to request tax-exempt treatment or preferred commercial terms from a supplier. It typically identifies the buyer, the types of goods covered, the effective date, and the authority to resell. Suppliers use the letter to document reliance for sales tax or inventory provisioning; buyers provide it to vendors, manufacturers, or distributors before bulk purchases. Requirements and acceptable form vary by vendor and by state; the document can be executed on paper or electronically under applicable e-signature law.

Why a clear Business Reseller Letter matters for operations

A precise Business Reseller Letter reduces payment and tax friction, documents the scope of resale authority, and limits audit exposure for both buyer and seller. Properly completed letters help vendors accept resale claims and streamline ordering and invoicing processes.

Why a clear Business Reseller Letter matters for operations

Who prepares and relies on a Business Reseller Letter

Common parties who create, request, or accept a Business Reseller Letter are listed below.

  • Manufacturers and wholesalers verifying resellers for volume pricing and tax exemptions.
  • Independent resellers, distributors, and retailers documenting authority to resell purchased goods.
  • Accounting, tax, or procurement teams collecting evidence to support resale claims in audits.

Each party should keep a dated copy and any supporting resale certificate or business registration to substantiate the relationship.

Step-by-step: complete and deliver a Business Reseller Letter

Follow these sequential steps to prepare, sign, and deliver a valid Business Reseller Letter.

  • 01
    Draft: Populate buyer and scope fields accurately.
  • 02
    Verify: Attach resale certificate or EIN proof.
  • 03
    Sign: Authorized representative signs and dates the letter.
  • 04
    Deliver: Send to supplier and retain a copy for records.

How electronic completion and delivery typically flow

This sequence shows the typical online workflow for completing a Business Reseller Letter and tracking delivery.

  • Upload document: Sender uploads template or blank letter.
  • Add fields: Place name, EIN, date, and signature fields.
  • Send to signer: Email or link delivered to authorized signer.
  • Capture audit: Platform logs timestamp, IP, and signature event.

Recommended online workflow settings for e-submission

Configure these settings in your e-signature platform to support a secure and auditable Business Reseller Letter workflow.

Field Configuration
Authentication method Email link or SMS code; use stronger auth for higher risk
Signature type Standard electronic signature with audit trail
Document format PDF/A or PDF export for immutable copy
Retention policy Store signed PDF plus certificate of completion

Digital signing and technical compatibility

Choose a platform that supports secure signatures, audit trails, and your integrations.

  • File formats: PDF, DOCX supported
  • Integrations: Salesforce, NetSuite, Microsoft 365
  • Authentication: Email, SMS, KBA options

Ensure your chosen provider can produce an unalterable signed PDF and a certificate of completion that documents signer identity and timestamps.

Essential information to include in the letter

Buyer name: Legal entity name
EIN: Federal tax ID
Resale permit: State resale number
Scope: Goods categories listed
Effective date: MM/DD/YYYY format
Signer authority: Name and title

Consequences of an incomplete or inaccurate letter

Sales tax assessment: Vendor may be liable for unpaid tax
Audit exposure: State audit can challenge resale claim
Contract dispute: Supplier may refuse resale pricing
Refund delays: Tax refunds or credits may be withheld
Reputational risk: Supplier relationships may be affected
Withholding risk: Backup withholding if TIN missing

Common mistakes to avoid when preparing the letter

  • Using an informal or incomplete company name that does not match tax records, which can lead to rejection by the supplier.
  • Failing to include the resale permit number or a copy of the state resale certificate when the vendor requires it for tax exemption.
  • Leaving the scope of goods ambiguous, which can allow vendors or auditors to disallow resale claims on disputed items.
  • Having an unauthorized individual sign the document; vendors commonly require an officer or someone with explicit signing authority.

Real-world examples of digitized documentation and compliance

These customer vignettes illustrate how electronic signing and audit trails support business documentation and vendor acceptance.

Optica Ventures LLC

The interface is simple for our team.

  • Audit trails provide clear evidence of signer identity.
  • Optica reduced turnaround time and retained complete signed records for vendor audits while integrating into procurement.

Tech Data

We used electronic letters to streamline vendor onboarding.

  • Integration with ERP reduced manual entry.
  • Tech Data improved internal controls and speed to invoice acceptance with documented reseller letters and automated retention.

Timing: when to deliver and how long processing takes

Timely delivery and internal retention are important; below are common timing expectations and related deadlines.

Provide Before Purchase:

Deliver to supplier before first tax-exempt purchase

Vendor Review Time:

Allow 1–5 business days for vendor verification

State Requests:

Retain records in case of state audit requests for 3+ years

Resale Certificate Renewal:

Some states require periodic renewal or revalidation

Record Retention:

Keep signed copy for at least the IRS minimum retention period

Comparing e-signature providers for Business Reseller Letter workflows

Platform capabilities and pricing vary; the table below outlines common buyer criteria and representative vendor entries for comparison.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day free trial Varies by plan Varies by plan Varies by plan Varies by plan
Bulk Send Yes (Premium tier) Yes Yes Yes Varies
Audit Trail Yes Yes Yes Yes Yes
Envelope Cap No cap 100 envelopes/user/year Varies Varies Varies

Frequently asked questions about Business Reseller Letters

Answers to common questions about validity, electronic signing, and recordkeeping for Business Reseller Letters.


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