Sales & Use Tax Registration Laws

Overview

Although Sales and Use Tax registrations would seem to be the most basic of business license filings, the requirements can vary from state to state, county to county and sometimes even by municipality. These applications can be confusing and time consuming.

At LicenseLogix, we are experienced in obtaining tax identification numbers in every state. We understand the nuances of each application and will streamline the process for your company. Instead of filling out different forms in every state, our clients only need to submit the proper information to LicenseLogix once. Let us manage the rest!

Our sales tax experts are trained to understand the complexities of where to file and what type of filing is necessary to your organization.

We keep up with regulatory changes on a daily basis so you don’t have to.

Background

Sales tax is generally imposed on retail sales, leases, rentals of most goods and on some services. The United States has an estimated 11,000 sales tax jurisdictions and the requirements of each are subject to periodic changes. Only a few states do not collect a sales tax (AK, DE, MT, NH, OR).

A Sales Tax ID Number is a legal document issued by the state and the Department of Revenue after we submit the appropriate application and documentation. Obtaining the ID number enables your business to collect the required taxes, be issued sales tax exemption and/or obtain resale certificates.

Other names for Sales Tax ID are:

  • Reseller Permit
  • Sales Tax Exemption Certificate
  • Sales Tax Vendor ID Number
  • Reseller Certificate
  • Sales Tax Registration
  • State Tax ID Number
  • Reseller Tax ID
  • Reseller Certificate

New businesses must understand whether and where they should apply for a Sales Tax ID –- the state will issue penalties if your company does not comply with these laws. A business that is expanding into other states may need to apply for an ID number at the state and possibly county/local level. Additionally, if a business changes its organizational structure (e.g., from Sole Proprietorship to LLC or Corporation), the new organization is required to register as a new sales vendor. The former organization must file a final return and surrender the old sales tax permit.

In some states, counties have their own collection privileges. For instance, the Arizona Department of Revenue collects the tax on behalf of the county and most cities; however, many of the larger cities in Arizona administer and collect their own sales and use taxes. These cities are referred to as non-program cities. Sales in the non-program cities must be reported directly to the applicable city. The state and county taxes must still be reported and remitted to the state.

How we help your business:

  1. We save your organization time navigating complex filing requirements so you can focus on valuable day-to-day business operations.
  2. We get a faster response time from the state departments by ensuring your applications are filled out correctly.
  3. We save your organization money by offering an efficient outsourced solution to tedious licensing projects.

More Resources:

- Amazon battles state sales tax
- Tennessee Governor calls for online sales tax
- California’s new law requiring online retailers to collect sales tax


CHOOSE A STATE BELOW FOR SPECIFIC BUSINESS LICENSING INFORMATION:

AL AK AR AZ CA CO CT DC DE FL GA HI IA ID IL IN KS KY LA MA MD ME MI MN MO MS
MT NC ND NE NH NJ NM NV NY OH OK OR PA RI SC SD TN TX UT VA VT WA WI WV WY