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How to Register for Sales Tax in Any State (Step-by-Step Guide)
TLDR: Once you determine where you have sales tax Nexus, the next step is to register for a sales tax permit in that state. You’ll need basic business info, your EIN, and sometimes a small fee. Every state is different, and failing to register means you’re legally not allowed to collect tax. doola can handle multi-state registration for you, saving you time and reducing the risk of mistakes.
When Do You Need to Register for Sales Tax?
You need to register for sales tax in any state where you’ve triggered Nexus. This can happen in two main ways:
Physical Nexus
You have physical Nexus if your business has:
- A warehouse
- An office
- Employees
- Stored inventory in a state
Economic Nexus
You may also be required to register if you meet economic thresholds, typically:
- $100,000 in revenue in a single state, or
- 200+ transactions with customers in that state per year
Once you cross either threshold, registration becomes mandatory.
How to Register for a Sales Tax Permit (Step-by-Step)
Each state has its own process, but here’s the general flow:
1. Find the State Tax Authority Website
Search for “[State] sales tax registration” to locate the official Department of Revenue site. Most states allow online applications.
2. Complete the Application
You’ll need to provide:
- Business name
- Employer Identification Number (EIN)
- Business address
- Legal structure (LLC, sole proprietorship, etc.)
- Estimated sales volume
3. Pay Registration Fees (if applicable)
Some states charge a one-time fee, which usually ranges from $10 to $100.
4. Receive Your Sales Tax Permit
Once approved, you’ll receive a state-issued tax ID that allows you to legally collect sales tax from customers.
What Happens After Registration?
Even if you don’t collect any sales tax in a given period, you must still file a return. States may require:
- Monthly, quarterly, or annual filings
- City- and district-level breakdowns
- Timely submissions—even with $0 tax due
Delays or missed filings can result in penalties and fees.
Why Use doola for Multi-State Registration?
Registering for sales tax in one state is manageable. But when you’re selling across multiple states—through platforms like Shopify, Amazon, or WooCommerce—the complexity multiplies.
doola helps by:
- Identifying where you’ve triggered Nexus
- Registering your business in each required state
- Managing ongoing compliance and filings
- Handling reseller certificates and due dates
With doola, you can skip the confusing forms and state websites—and focus on growing your business.
👉 Schedule a free demo with doola
FAQs
Do I need a sales tax permit to collect sales tax?
Yes. In most states, it’s illegal to collect sales tax without first registering and receiving a sales tax permit.
How do I apply for a sales tax permit?
Visit the official Department of Revenue site for the state where you have Nexus, complete the online application, and submit your business info.
What documents do I need to register?
You’ll need your EIN, business name, legal structure, and estimated sales figures for the year.
Can doola register for sales tax on my behalf?
Yes. doola can register your business in multiple states, manage filings, and ensure ongoing compliance across platforms.