Registering to Collect and Remit Sales Tax: Where to Begin
Registering to Collect and Remit Sales Tax: Where to Begin
Once you’ve identified where you have sales tax obligations, it’s time to register with each state to start collecting and remitting sales tax. Here’s how to get started:
Obtain a Sales Tax Permit
Before collecting sales tax, you must register for a sales tax permit in each state where you have a nexus. Head to the state’s Department of Revenue website, where you can typically complete the registration process online.
Have Your Business Information Ready
During registration, you’ll need to provide essential details about your business, such as your EIN (Employer Identification Number), business name, and physical address. Be prepared to share your anticipated sales as well.
Know the Filing Requirements
Once you have your permit, the next step is remitting the sales tax you’ve collected. States have different filing frequencies, from monthly to annual, depending on your sales volume. Mark the due dates and stay on top of your tax filings to avoid penalties.
Monitor State Sales Tax Rules
Sales tax rates and regulations can vary from state to state. It’s essential to stay up to date on tax changes, exemptions, and rate fluctuations in each state where you do business.
By following these steps, you’ll be on your way to successfully managing your sales tax obligations and ensuring compliance across the states.
If you have questions about managing sales and use tax, we’re here to help.
About Davis Davis & Harmon LLC – Sales Tax Experts: Headquartered in Dallas, Texas, Davis Davis & Harmon LLC – Sales Tax Experts specializes in sales/use tax refund recovery and audit defense. Our team of consultants is comprised of former Big 4 sales tax consultants and state sales tax auditors. Each of our consultants has 15 to 20 years of experience, providing our clients with access to a highly specialized team of sales/use tax professionals. At Davis Davis & Harmon, LLC, we are committed to maintaining the highest standards in our talent pool. We work hard to meet our clients’ needs by ensuring that you view our firm as an extension of your company and a member of your team.