How to register for a sales tax license/permit in the USA?

Prior to collecting sales tax in the USA, as the business owner (the seller), you must register for a license, also called a ‘permit,’ with the state(s) you have tax nexus in.

Each jurisdiction has a tax authority which is typically called the (State) Department of Revenue or (State) Department of Taxation. This department handles your business sales tax registration and other areas of sales tax.

How to register for sales tax?

You should register for a sales tax license once your business has met the nexus threshold in a state(s). The threshold varies state by state.

You have two options for a sales tax registration: 

1. The business owner registers for a permit themselves

2. The business owner hires a tax professional to register the business on their behalf

When to register?

• Your business is located in that jurisdiction

• Your business has met economic nexus in that state

• Your business has physical nexus in that state

• You are a marketplace seller and have nexus in a state that does not have their own marketplace facilitator law

If you need to register for a sales tax license to comply with state law, you can review our article on registrations. You can also review our knowledge base on thresholds to verify if your business has met a threshold, and, of course, Taxually can assist you with your registration!

FAQ

Do you want to learn more about registrations and related topics? Here’s a list of some articles:

• How do I close my business? What if my business moves to a different state?
• How do I implement legal changes to my business?
• How do I get my sales tax permit renewed?