Sales Tax Permits: How Much will it Cost me to Apply?
You have two costs involved when registering for sales tax permits.
The state fees to register a sales tax permit in some states, and your time and money to register for each permit. Your time is valuable and figuring out how to register, with either calling the state directly or researching online, can be time-consuming. It may be beneficial to hire a professional service to apply for each permit for you, so you can focus on other tasks.
The State Fees
When it comes to applying for a sales tax permit, most states do not require state fees. However, some states do have a separate filing fee. For example, Connecticut is $100, Nevada is $15, Indiana $26, New Jersey is $0 and South Carolina is $50.
Your Time and Money to Register
The real cost that comes into play when applying for sales tax permits is your time and costly mistakes.
There are a few states where you apply online for a sales tax permit and after you enter all your business information, start date, and estimated sales you have an immediately permit. Most states, however, have a more detailed online process; questions, that if you answer one way will lead you down one path and if answered differently will lead you down another.
Solutions in Applying for Permits?
Go to the Department of Revenue.
Look online or call the state. Caution: you may call the state and get a different answer than what you need, depending upon how you describe your situation. There is a big difference between Amazon’s stock in California vs your stock in an Amazon warehouse in California.
Articles or blog posts by third parties.
These can be very helpful to help summarize the process, which may save you some time. It still comes down to how you fill out the application and are you following the correct pathway. In Texas, for example, if you don’t have a SSN you cannot apply online, you must mail in an application.
Reviewing private Facebook or membership groups.
You are learning from the experience of other members in your group who have gone through the same process. This may be helpful if the answers are accurate. Many times, they may lead to a result you don’t want or know about.
Hire a CPA firm to apply for permits.
In most cases, they don’t have experience in the states, other than their home state, and they will bill you for their time to figure out the process. Since they don’t have much experience, in general, this may lead to errors and become costly.
Hire a professional sales tax permit firm.
The key here is to work with a company that applies for permits on a weekly basis and has a system. Some companies are offline. You speak to a representative to fill out an application over the phone, including several back and forth emails or calls to get more details (Each state has different steps involved.) This is time-consuming and expensive.
Need permits, use our services to apply for your permits. Go to our link to learn more about our sales tax registration options.