Sales tax is mostly a state and local matter. We help you work out where you may need to register, then keep your filings on schedule.
It depends on where your business has an obligation, what you sell and each state’s rules. Sales tax is mainly set and collected by states and local governments, so forming an LLC in one state does not mean you collect only there. Selling online does not automatically mean registering in every state.
From first question to regular filings.
Every filing period
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A state can have a claim on you when your business is physically there:
A physical presence in a state can create nexus there, even for a small business.
Many states also look at how much you sell into them:
Thresholds and rules differ by state, so each state is checked on its own.
The state decides your schedule, often based on how much you sell.
Many states require marketplaces to collect and pay sales tax on sales made through them. You may still have registration or filing duties for sales you make elsewhere, such as your own website or in person. Rules vary by state.
Some purchases and customers can be exempt from sales tax, and the paperwork differs by state. A resale certificate is not the same as a business license. Tell us what you buy for resale and who you sell to.
Registering for and filing sales tax does not replace your federal or state income-tax return, and the reverse is also true.
Having these ready speeds up the review.
Permits, filing dates and returns together. Select a tile to see what it shows.
Sales tax Example
Where You Collect: See each state, its permit status and what it needs next.
Sales tax is generally imposed and administered at the state and local level rather than as a general federal sales tax.
Not automatically. Obligations depend on nexus, which can come from a physical presence or, in many states, from sales activity above that state’s threshold. Thresholds and rules differ by state.
Nexus is a connection between a business and a state strong enough that the state can require it to register and collect sales tax. It can come from a physical presence, such as an office, employee or inventory, or from economic activity such as sales volume.
No. Forming an LLC in one state does not automatically mean you collect sales tax only in that state. Sales-tax obligations can depend on business presence, sales activity and state-specific nexus rules.
Generally yes. Most states require you to register and receive a sales tax permit or license before you collect sales tax from customers. The name and the process differ by state.
It depends on the state and, often, on how much you sell. Many states assign a monthly, quarterly or annual schedule, and many expect a return even for a period with no sales. Check your state’s rule.
No. Sales-tax registration and periodic sales-tax returns are separate from federal and state income-tax returns.
Many states require marketplaces to collect and pay sales tax on sales made through them. You may still have obligations for sales you make elsewhere, such as your own website or in person. Rules vary by state.
It depends on the number of states, how often you file and how organized your sales records are. Your price is shown to you before you start.
Related reading: Free Tools State Guides
Tell us where you sell, what you sell and how you sell it. We’ll help you see where you may need to register and what to file.
Sales tax rules and registration requirements differ by state.
