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Once you’ve determined that your ecommerce business has sales tax nexus in a state, the next step is registering for a sales tax permit. This isn’t just a checkbox—it’s a legal requirement. Collecting sales tax without a permit can result in penalties and compliance issues that can derail your operations.
Here’s what you need to know about registering properly—and how AVASK US can help streamline the process.
Step 1: Understand Where You Have Nexus
Before registering, you need to know where you’re legally obligated to collect sales tax. Nexus can be triggered by physical presence (offices, inventory, employees) or economic thresholds (typically $100,000 in sales or 200 transactions). Once nexus is established, you’re required to register in that state before collecting any sales tax.
Step 2: Prepare Your Business Information
Each state has its own Department of Revenue, and while the registration process may vary slightly, most will ask for:
- Legal business name
- Physical and mailing addresses
- Employer Identification Number (EIN)
- Business entity type
- Products or services you sell
- When you started doing business in that state
- Projected sales volume
Depending on the state, you may also be asked about inventory storage or third-party fulfillment (such as Amazon FBA).
Step 3: Register Before You Collect
Sales tax permits are usually issued within a few business days, though processing times can vary. One critical rule to remember: do not collect any sales tax until your registration is complete and your permit has been issued.
Collecting tax without authorization is illegal and could result in fines, interest, or even legal action.
Step 4: Stay Compliant Post-Registration
Once registered, you’re responsible for:
- Charging the correct sales tax rates
- Filing returns based on your assigned frequency
- Keeping detailed records of sales and tax collected
This is where many sellers start to feel overwhelmed—especially if they’re registered in multiple states with different rules and deadlines.
How AVASK US Can Help
At AVASK US, we specialize in helping ecommerce businesses manage multistate sales tax compliance from start to finish. We assist sellers in identifying where they have nexus, registering in the right states, and ensuring that their permits are issued properly—so they can collect legally and confidently.
Our team helps you avoid costly mistakes and stay compliant as your business scales.
Final Thought
Registering for a sales tax permit isn’t just about following the rules—it’s about protecting your business from avoidable risk. As your ecommerce footprint grows, having a trusted partner like AVASK US can save you time, stress, and money.
Ready to ensure you’re properly registered in all nexus-relevant states? Reach out to AVASK US for expert guidance and hands-on support.
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