{"id":3148,"date":"2022-04-14T14:59:31","date_gmt":"2022-04-14T19:59:31","guid":{"rendered":"https:\/\/www.northone.com\/blog\/?p=3148"},"modified":"2023-06-26T12:15:14","modified_gmt":"2023-06-26T17:15:14","slug":"sellers-permit","status":"publish","type":"post","link":"https:\/\/www.northone.com\/blog\/small-business\/sellers-permit","title":{"rendered":"What is a Sellers Permit? How to Get One in Your State"},"content":{"rendered":"\n

A seller’s permit authorizes a business owner to collect sales tax on behalf of the state with a specific seller permit number. You’ll need a seller’s permit if you sell items or offer services that are subject to state sales tax, and you’ll need one in each state where you do business. This is an essential step when starting your business.<\/a><\/p>\n\n\n\n

Businesses who sell sales taxed products and services are functioning as agents for the government. Customers pay the sales tax, but companies are responsible for collecting it and remitting it to the state. Seller’s permits allow businesses to collect sales tax and provide a means for the taxing agency to track payments and guarantee they are received on time.<\/p>\n\n\n\n

The state Department of Revenue normally issues a seller’s permit, also known as a sales tax license, vendor’s license, retail license, certificate of authority, or business tax account. In certain states, it is issued by the Secretary of State, the Department of the Treasury, the Board of Equalization, or the Department of Taxation.<\/p>\n\n\n\n

<\/span>Seller’s Permit vs Resale or Wholesale Certificate<\/span><\/h2>\n\n\n\n

Have you been curious about how to get a seller\u2019s permit, only to find out about wholesale certificates? A seller’s permit is not the same as a resale (aka wholesale) certificate. Businesses frequently purchase items or resources for resale.<\/a> A retail store, for instance, might purchase food from a distributor to sell in their shop. In some states, these purchases are not taxed; the tax is paid when the shop sells the snacks. <\/p>\n\n\n\n

The owner of the retail store must get a resale certificate from the state to demonstrate that the transaction is not taxable; this certificate may be issued every year. To learn more about resale certificates, contact your state’s taxes authorities.<\/p>\n\n\n\n

<\/span>Seller\u2019s License for Online Sales<\/span><\/h2>\n\n\n\n

You might be asking if you need a seller’s license if your company sells online. Internet sales taxes are evolving. States are enacting legislation to take advantage of a recent Supreme Court rule that gives them additional authority to tax online purchases. <\/p>\n\n\n\n

Some states require a minimum number of sales or transactions. Some states, for example, impose an annual minimum for online transactions of $100,000. Your business would not be required to collect, record, or pay sales taxes in that state if you are under the state’s minimum.<\/p>\n\n\n\n

<\/span>How to Obtain a Seller\u2019s Permit<\/span><\/h2>\n\n\n\n

Getting a seller\u2019s permit is usually pretty straightforward, although it might differ depending on your jurisdiction. In most cases, all you have to do is fill out an application and submit it to the appropriate government. <\/p>\n\n\n\n

You can generally find the form on the website of your local company regulatory body. You\u2019ll likely need the name and location of your business, your Social Security number (SSN) or employer identification number (EIN)<\/a>, expected monthly sales, and supplier names to apply. <\/p>\n\n\n\n

You can then mail or hand-deliver the completed form. You might be able to submit it online as well. In most cases, there is no charge for requesting a seller’s permission.<\/p>\n\n\n\n

<\/span>Documents Needed to Apply for Your Seller\u2019s Permit<\/span><\/h2>\n\n\n\n

The specific documents needed can vary slightly from state to state. Most commonly you\u2019ll need the following when you fill out a seller\u2019s permit application:<\/p>\n\n\n\n