For the complete documentation index, see llms.txt
For the complete documentation index, see llms.txt
What is sales tax registration?
Sales tax is a tax charged on the sale of goods or certain services, and sales tax registration is how you get permission to collect and remit it. Specifically, it's the process of applying for a permit from a state or local tax authority that lets your business legally collect sales tax from customers and pass it along to the state.
Whether you need to register depends on whether you have sales tax nexus in a state, meaning a significant connection to it, either through a physical presence (like an office, warehouse, or employees) or through economic activity (like exceeding a state's sales or transaction threshold).
Because nexus rules and tax rates vary by state, your obligation to register and collect sales tax depends on where and how your business operates and sells. If you determine you have nexus in a state, you'll generally need to register for a sales tax permit there before you start collecting tax from customers in that state.