Sales Tax Permit Registrations
Sales Tax Permit
Complete Sales Tax Permit Registrations
Our process and team are current with all the ongoing sale tax changes since the 2018 Wayfair vs. South Dakota U.S. Supreme Court ruling.
There are 42 states and growing where companies such as Amazon, Walmart, eBay, Etsy... that provides a platform for third-party sellers, consider a marketplace facilitator.
Even if you are selling on a marketplace facilitator such as Amazon and using their FBA service, there are still up to seven states that require registration as of April 2020. Learn more here.
If you are selling on a non-market place facilitator such as Shopify, you may have economic nexus in up to 45 states, including D.C. and Alaska at local municipalities, of which 27 states have transaction thresholds of 200.
Sales Tax Permit Registration Process
Permit Ordering FAQs - Before
- Sales tax remitting software is great to pull your data to autofill tax returns to be filed, and even with that, working with a competent commerce accounting team is strongly recommended. They all have content about filing sales tax returns and general steps on how to register on your own. Since they don't do the sales tax registrations (which can change quarterly), they only give you general steps, which will lead to delays and mistakes. Sales Tax System is the step before remitting any sales tax returns, and since we have applied for thousands of permits, we are on top of that process. If you are a CPA or commerce accounting firm, we are not going to compete with that work you are already doing, since that is not what we do.
- There are several reasons why our process is the most completed and efficient. Since we started registering thousands for sales tax back in 2015, we have improved our master sales tax application to simplify the process and information we need from you. Our application is secure and encrypted.
Our master application will autofill the other state forms, whether we need to mail in an application or use the information to apply online. Since we are applying daily, we are in constant contact with the various state departments of revenue and keep up with the critical updates and changes (which are ongoing). Our instructions (both written and video overview) will help explain each step of our application and process so that you can focus your time on your business, not sales tax registration.All your login details for your tax accounts that we set up are saved in a secure area for easy future access. When you are ready to re-order more state sales tax permit registrations, you will have access to your saved application to add the states you need vs. having to start from scratch and complete the entire application.
- Our sales tax application will provide guidance and clear examples to help you determine when you first had nexus, your start date, and costly application mistakes to avoid. If you need support with a sales tax nexus study to provide you with a clear and accurate report, recommended states, and time frames to register, we provide those services.
- After payment, you will receive our welcome email with a link to both our sales tax system agreement (a review of our 8-step process) and our sales tax application. The sales tax application is where you will select the states where you would like us to register your business. Our sales tax application includes very clear instructions and examples for each section.
We have consolidated all the questions over the years to improve our instructions and video training, to make this easy for you. Once you submit our sales tax application with your selected states, our advanced sales tax team will carefully review your sales tax application and follow up for clarification or suggested changes before we move forward to apply. Separately, we will send you a separate payment link with the state fees to pay.
- Yes, it is strongly recommended. There are 26 states that will mail either the PIN, a code, or the actual permit to the address used on the application. These items are critical to complete your tax account and get into compliance. Also, on average, you may receive 3-5 pieces of mail to sort and organize per state over the first three months. Most mail may be information or past returns to file, but some will be important notices in relation to your sales tax account, past sales tax due, or delinquent notices. We recommend our Virtual Address Service with scanning for all sellers. Learn more here.
Permit Ordering FAQs - During
- Here is our 8-step process overview Go to this link . You will receive our welcome email with a link to your Sales Tax Agreement and Sales Tax Registration Application to complete online. Once submitted, our team will review and follow up with a link for the state fees to be paid.
- Any questions about our process, applications, and next steps provided are included. We provide a video overview and examples on our application to simplify the process to register. If you need support for other services, including EIN, virtual address service, U.S. entity formations, U.S. banking, foreign qualifications, sales tax research, sales tax nexus evaluation… all are separate.
- Yes. We know how busy you are growing your e-commerce business. Our services have automatic campaign follow-ups and reminders to help you stay on track. Each email lets you know which step of the sales tax permit registration process is next. Once we receive your complete agreement and application, a tag set in our system by our team will stop follow-up reminders.
- This is the date you first had nexus in a state (either physical or economic are most common) and had sales to customers in those states.
- Yes, there are two states that require a SSN or ITIN (and this may change in the future). If you select these states and don’t have an ITIN, we do have a recommended resource to obtain one. If you decide not to obtain one in a state, we would be unable to move forward. This is part of our review process.
- The process may vary from the time your sales tax application is received, reviewed and state fees are paid. Time frame with an SSN (when we are able to apply online) is from 1-3 weeks, and without an SSN or ITIN and when mailing or faxing is required, maybe 4-8 weeks.
Permit Ordering FAQs - After
- Yes. There is one state that requires foreign qualification before applying for sales tax, and we provide a separate service for that process. There are some states where it is recommended to foreign qualify based upon the state’s view of collecting and remitting sales tax being considering doing business in the state. Some states do cross check between the department of revenue and Secretary of State. Our sister company, NCP, has been performing entity formation, as well as all the steps involved with foreign qualification since 1997. This is a continuously changing process as the states evaluate this moving target, but we will keep you updated as a client.
- Yes. We provide the steps for the most common marketplaces to update your tax settings (as needed). There are some states where the marketplace facilitator collects on your behalf.
- We have remitting partners that will support you with filing any past returns, as well as remitting moving forward.
- Yes. This is a moving target with bank changes over time. Travel is required and our fees to facilitate this process are separate. Most banks require an ITIN or local utility bill. Operating with a U.S. entity vs a foreign entity makes a big difference also. The best part is we have the most updated options available. Our remitting partners recommend a U.S. bank account with an ACH pull to automate the filing of your sales tax returns with the states. Update: As of February 2020, we now have a non-travel option for U.S. entities only.
- Yes. We work with a few different tax firms (and tax attorneys as needed) that will quote you a fee to file any required state tax returns.
SPEAK TO A TEAM MEMBER
If you are looking for clarity on our fees, services, or options to help, please click on the link below. There is no fee to speak with a team member.
Our team members provide no tax advice on nexus, or when to register.
SCHEDULE A STRATEGY CALL
In this 30-minute strategy call, Scott Letourneau will address your questions and guidance to move forward. Common questions include sales tax nexus, past sales tax, states to register, foreign sellers, sales tax returns due, and sales tax exposure. Learn more.
CPAs and Tax Professionals:
Would you like to outsource your sales tax registrations?
Focus on bookkeeping, tax returns, SBA loan support...not time-consuming registrations.
Contact our support team for more details.