How to Register for a Sales Tax Permit in Maryland

Who Needs a Sales Tax Permit in Maryland?

In Maryland, businesses that sell tangible personal property or offer taxable services are required to collect and remit sales tax to the state. This applies to physical storefronts, service providers, and online sellers. 

The economic nexus threshold in Maryland requires businesses with 200 transactions or $100,000 in sales in the state to collect sales tax, regardless of physical presence. 

Common examples include a local retail shop, a contractor providing taxable services, and an out-of-state online seller that exceeds the sales threshold.

Steps to Register for a Sales Tax Permit in Maryland

Follow the steps below to register for a sales tax permit in Maryland. 

1. Prepare Your Documents

You will need to provide the following information: 

• Legal Business Name: This should match the name registered with the Maryland Department of Assessments and Taxation.
• Physical Business Address: A street address is required; P.O. boxes are not typically accepted.
• Federal Employer Identification Number (FEIN): You can obtain this from the IRS if you do not already have one.
• Contact Information: Include phone numbers and email addresses for primary business contacts.
• North American Industry Classification System (NAICS) Code: This code identifies your business industry.
• Date of Business Commencement in Maryland: Specify when your business operations began or will begin in the state.

2. Register Online via the Maryland Comptroller’s Website
To register, visit the Maryland Comptroller’s online portal, complete all required fields, ensure accuracy, review your application, and submit it for processing.

3. Wait for Approval

Typically, it takes 2-3 business days to receive your account number after online registration. Once approved, you’ll receive your sales tax permit, allowing you to collect sales tax in Maryland.

Handling these processes while running your business can be challenging. doola’s Bookkeeping services can guide you through each step, ensuring timely compliance. 

Understanding Your Sales Tax Responsibilities in Maryland

Businesses in Maryland may be required to file sales tax returns monthly, quarterly, or annually, based on their sales volume. Understanding the correct sales tax rates is crucial as these can vary by location, including state, county, and local jurisdictions. Maryland also has specific exemptions, such as tax-free holidays and the use of resale certificates, affecting tax collection and reporting.

Common Mistakes to Avoid

• Neglecting to register for a sales tax permit when needed.
• Applying incorrect sales tax rates for local jurisdictions.
• Missing filing deadlines, resulting in penalties.
• Overlooking exempt sales and not keeping proper documentation for resale certificates.

How to Maintain Compliance & File Sales Tax Returns

For filing sales tax returns in Maryland, access the Comptroller’s online portal, where you can submit returns and payments electronically. Using automated solutions can help simplify tax collection and ensure compliance.

Remember that doola is here to assist with your books and taxes, ensuring your business remains compliant effortlessly. 

FAQs About Sales Tax Permits in Maryland

How long does it take to get a sales tax permit? 

It typically takes a few business days for the Maryland Comptroller’s office to process a sales tax permit application.

Do I need to renew my sales tax permit? 

No, sales tax permits in Maryland do not require renewal, provided ongoing compliance is maintained.

What happens if I stop doing business in Maryland? 

You need to close your sales tax account with the Maryland Comptroller’s office by notifying them of your business cessation.

Are online sellers required to collect sales tax in Maryland? 

Yes, if they exceed the 200 transactions or $100,000 economic nexus threshold, online sellers must collect Maryland sales tax.

Stay Compliant With doola 

Registering for a sales tax permit is essential for any business operating in Maryland. Compliance involves keeping track of deadlines, accurate tax collection, and understanding exemptions. 

Professional guidance is advisable to ensure correct handling of these responsibilities. For financial solutions, doola provides guidance to aid compliance, making it easier for your business to prosper. 

Visit the Maryland Comptroller’s website for further information and resources.