How to Register for a Sales Tax Permit in South Dakota

Who Needs a Sales Tax Permit in South Dakota

In South Dakota, any business that sells tangible personal property, or taxable services must collect and remit sales tax. This includes physical storefronts, service providers, and online sellers operating in or above the state’s economic threshold.

The economic nexus threshold states that businesses with over $100,000 in sales or 200 transactions in South Dakota must collect sales tax, regardless of physical presence in the state.

Common examples include a local gift shop, a contractor providing taxable repair services, and an online retailer meeting the sales threshold.

Steps to Register for a Sales Tax Permit in South Dakota

Follow these steps to register for a sales tax permit in South Dakota:

1. Prepare Your Documents

Ensure you have the following information ready:

• Legal Business Name: Should match the name registered with the South Dakota Secretary of State.
• Physical Business Address: A legitimate street address is required; P.O. boxes are generally not acceptable.
• Federal Employer Identification Number (FEIN): Obtainable from the IRS, if not already acquired.
• Contact Information: Include relevant phone numbers and email addresses for key business contacts.
• North American Industry Classification System (NAICS) Code: Defines your business industry category.
• Date of Business Operations Commencement in South Dakota: When your business operations started or will start within the state.

2. Register Online via South Dakota’s EPath System

To register, visit the EPath portal, select “New Business Registration,” accurately provide the necessary information, review the application, and submit it through the system.

3. Await Approval

Typically, it takes a few business days to process your registration. Once approved, you’ll receive your South Dakota sales tax permit, enabling you to legally collect sales tax.

Managing all these tasks alongside running a business can be challenging. doola’s Bookkeeping services offer an ideal solution to streamline the process, ensuring you’re fully compliant from start to finish.

Understanding Your Sales Tax Responsibilities in South Dakota

Businesses in South Dakota are generally required to file sales tax returns monthly, quarterly, or annually based on sales volume. It’s crucial to apply accurate sales tax rates which, unlike many states, don’t vary by local jurisdiction since South Dakota has a uniform state sales tax rate statewide. South Dakota does allow some exemptions and offers specific conditions for certain sales that might affect how sales tax is collected.

Common Mistakes to Avoid

• Neglecting to register for a sales tax permit when required.
• Applying incorrect sales tax rates or failing to adhere to exemptions.
• Missing submission deadlines, leading to penalties.
• Failing to document exempt sales properly.

How to Maintain Compliance & File Sales Tax Returns

To file sales tax returns in South Dakota, you can utilize the EPath system, which allows you to submit returns and payments electronically. Consider using automated solutions to simplify the process and ensure accuracy.

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

FAQs About Sales Tax Permits in South Dakota

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

The standard processing time for a sales tax permit in South Dakota is around 3-5 business days after applying through the EPath system.

Do I need to renew my sales tax permit?

No, once issued, a sales tax permit in South Dakota does not need to be renewed as long as compliance is maintained.

What happens if I stop doing business in South Dakota?

You are required to close your sales tax account by notifying the South Dakota Department of Revenue.

Are online sellers required to collect sales tax in South Dakota?

Yes, if they meet the threshold of $100,000 in sales or 200 transactions, online sellers must collect South Dakota sales tax.

Stay Compliant With doola 

Registering for a sales tax permit is an essential step for any business operating in South Dakota. Maintaining compliance involves staying on top of deadlines, accurately collecting taxes, and understanding exemptions.

Businesses should consider professional help to ensure everything is handled correctly. For a smooth experience, doola can provide the guidance needed for compliance, allowing your business to focus on growth.

For additional information and resources, refer directly to the South Dakota Department of Revenue.