Registration & Permits
13 questions
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Do I need a separate sales tax permit for every state?
Technically yes, but the SST unified registration covers all 24 SST member states in a single application. For sellers with nexus in many states, SST registration dramatically reduces the per-state registration burden.
Beginner -
Do I need to register before I start collecting sales tax?
Yes, registration comes before collection. Collecting sales tax without a permit is illegal in most states. Here's the correct sequence and what to do if you've already started collecting without a permit.
Beginner -
Do I need to renew my sales tax license?
Most states issue sales tax permits that don't expire and don't require renewal. Florida is the main exception for ecommerce sellers, its Annual Resale Certificate (for exempt purchases) must be renewed every year. A handful of states require periodic permit renewals.
Beginner -
How do I close a sales tax permit when I no longer have nexus in a state?
To close a sales tax permit, log into the state's taxpayer portal, request permit cancellation, file a final return covering the period through your closure date, and remit any remaining tax owed. Each state has its own process, most take 2–6 weeks to process.
Intermediate -
How do I register for a sales tax permit?
You can register directly on each state's revenue department website, or through the SST system if you use a Certified Service Provider. Here's the step-by-step process for both.
Beginner -
How do I register in California — why is the PIN-by-mail process so slow?
California requires a PIN mailed to your business address to grant third-party access to your CDTFA account. The PIN takes 1–3 weeks to arrive. You can submit your initial registration online, but your compliance software or accountant can't access your account until the PIN arrives and is activated.
Intermediate -
How does registration work in NOMAD states (no statewide sales tax)?
NOMAD states (Montana, Oregon, New Hampshire, Delaware, and Alaska) have no statewide sales tax. There is no sales tax permit to obtain and no sales tax to collect in these states. Alaska is the exception: it has no state tax but allows local governments to levy sales taxes, requiring registration with the Alaska Remote Seller Sales Tax Commission.
Intermediate -
How long does it take to get a sales tax permit?
Most states issue permits in 1–5 business days online. A few take 2–4 weeks. Several states allow you to start collecting while you wait. Here's what to expect by state.
Beginner -
How much does a sales tax permit cost by state?
Most states issue sales tax permits for free. A small number charge nominal fees ($10–$50). Alabama requires a security deposit for some out-of-state sellers. SST registration through a CSP is always free.
Beginner -
What happens if I was supposed to register earlier and didn't?
Registering late triggers back tax, interest, and potential penalties. The standard path forward is a Voluntary Disclosure Agreement (VDA), which limits your lookback period and often eliminates penalties.
Intermediate -
What information do I need to register for a sales tax permit?
Sales tax registration requires your EIN, business address, legal structure, NAICS code, the date nexus began, and a description of products sold. Having this ready before starting shortens the process significantly.
Beginner -
What is the risk of waiting to register vs. registering proactively?
Waiting to register after crossing an economic nexus threshold creates retroactive tax liability, penalties (5–25% of tax due), and interest from the original due date. The longer you wait, the larger the exposure. Voluntary Disclosure Agreements can reduce the lookback period but don't eliminate the underlying tax.
Intermediate -
What is the SST unified registration, and how many states does it cover?
The SST unified registration is a single application that registers a seller in all Streamlined Sales Tax member states simultaneously. It currently covers 24 states. There is no fee to register through an SST Certified Service Provider.
Intermediate