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Sales Tax Registrations

Question 1

When should I register for sales tax?

Answer

You need to register in states that you are physically connected to (an office or shop, employees or if you store goods in a warehouse). If you have no physical connection, you only need to register once your sales into that state exceed a threshold. Ideally, you should register before you have nexus – but some states give you a short leeway. If you don’t register for sales tax this can lead to penalties and interest on unpaid taxes.

Question 2

How do I register for US sales tax?

Answer

Registering for Sales Tax in the US can be complicated. You must register with each state’s Sales Tax authority if you have an economic or physical nexus there. In some cases, you can do this by using the particular state’s sales tax authority website. In other cases, you’ll need to call them or even mail an application form. You’ll need the following information: your business name, address, federal tax ID number, and business type.

Question 3

What is a sales tax ID? And, do I need to register for one?

Answer

A sales tax ID, also known as a seller’s permit, vendor’s license, or sales tax permit, is an identifier issued by a state that authorizes your business to collect sales tax from customers. Whether you need to register for one depends on whether you have “nexus” in that state. Nexus refers to having a sufficient connection to the state that triggers the obligation to collect and remit sales tax.

This connection can be established in a few ways:

Physical presence: Having a store, office, warehouse, or any other physical location in the state can create nexus.
Economic activity: Surpassing a certain sales threshold within the state, even without a physical presence, can also establish nexus. Each state has its own threshold amount.

Question 4

Where do I register for sales tax?

Answer

You register in each state where you have nexus. This can often be done online through the state’s Department of Revenue website.

But why waste your time and risk getting it wrong? Let us do the work. Our team of Sales Tax experts understand all of the complexities that come with registering for US sales tax.

By filling in a simple form, we will contact the tax offices on your behalf and get you set up in all states where you are required to collect and pay sales tax.

Question 5

What happens once I am registered with a state?

Answer

Registration is only the first step to Sales Tax compliance. Once registered, you’ll have 3 problems to solve:

Collect tax on sales to that state
File monthly or quarterly tax returns
Pay over the tax you have collected

Do not register unless you have a plan to collect, report and remit your Sales Tax – or you might make things worse. Yonda can automate the entire Sales Tax process end-to-end.

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Sales Tax Registrations

US Sales Tax Registration:
What you Need to Know?

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US Sales Tax Registration: What you Need to Know?