Business Documents

Seller Permit Guidance

Get your seller's permit (sales tax permit) to legally collect sales tax from customers in states where you have nexus.

Overview

What this service is and why it matters

A seller's permit (also called a sales tax permit or resale certificate) is required for businesses that sell taxable goods or services. It allows you to collect sales tax from customers and remit it to the state. If you have sales tax nexus in a state (physical presence, inventory, or economic activity), you must register for a seller's permit in that state.

Who needs this?

Any business that sells taxable goods or services and has sales tax nexus in a state. This includes Amazon FBA sellers (inventory in fulfillment centers creates nexus), e-commerce businesses, and retail stores.

Why is it important?

Selling without a seller's permit when required can result in significant penalties, back taxes, and interest charges. It is a legal requirement for collecting and remitting sales tax.

Complete Process

Determine which states you have sales tax nexus in (physical, inventory, or economic)

Set up sales tax collection in your e-commerce platform

Collect sales tax from customers at the applicable rates

File sales tax returns and remit collected tax to each state

Track filing deadlines for each state

Review nexus regularly as your business grows

Required Information & Documents

Business entity details (name, EIN, formation state)

Business physical address and mailing address

Business activity description

Expected monthly/annual sales

Names and addresses of owners

Formation documents (Articles of Organization)

Timeline Expectations

Seller's permit registration typically takes 2-10 business days depending on the state. Some states issue the permit immediately, while others take longer to review the application.

Common Mistakes to Avoid

Not registering in states where you have Amazon FBA inventory

Collecting sales tax without a permit — this is illegal in most states

Not filing sales tax returns even when you collected zero tax — most states require a zero return

Filing late — states impose penalties for late filing even if no tax is owed

Not tracking nexus as your business grows — you may need to register in new states

Using the wrong tax rate — sales tax rates vary by city and county

Benefits

Legal compliance with state sales tax laws

Ability to collect sales tax from customers

Avoid penalties and back tax assessments

Proper tax remittance to state authorities

Required for Amazon and other marketplace sellers

Builds business credibility

Frequently Asked Questions

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