Step-by-Step Process: How to Get a Seller’s Permit in the U.S.

When starting or expanding your business, you must obtain the necessary licenses and permits. They protect you from legal issues and allow you to perform your business activities faultlessly. Among various licenses, a seller’s permit is essential for any business operating in the US (except for the states with no sales tax). Whether conducting a brick-and-mortar business or an ecommerce company, you’ll need a seller’s permit. It can be complicated for new businesses to understand where to start. This article outlines a seller’s permit and the step-by-step process to obtain it.  

What is a Seller’s Permit?

A seller’s permit is also often called a sales tax permit, retail license, sales tax license, vendor’s license, use tax permit, or certificate of authority. In general, every business, whether ecommerce or on-site, must obtain this to conduct business in a state. Specifically, it is a document that authorizes the collection of sales tax on taxable goods and services from customers on behalf of the state. Once obtained, a business becomes an intermediary between the customer and the government for sales tax collection. At the point of sale, customers pay sales tax to the business on each taxable item’s sale price. Finally, the registered seller collects and remits the sales tax to the state’s taxing authority.

Seller’s Permit vs. Business License: What’s the Difference?

Many new entrepreneurs confuse these two documents.

• Business License: Issued by your city or county to give you the legal right to operate a business in that local jurisdiction.
• Seller’s Permit: Issued by the state (Department of Revenue) specifically to allow you to collect sales tax from customers and report it to the government. You often need both to be fully legal.

How to get a Seller’s Permit?

Getting a seller’s permit is simple, but the process may vary by state. The cost of a seller’s permit also varies. Most states don’t charge any fees for the license. Still, some states require a registration fee, security deposit, and renewal charges. You can find the seller’s permit application on each state’s Department of Revenue website. For instance, the applications in Florida and California are available on the respective states’ websites.

Economic Nexus Update

In the past, many states required a permit if you had 200 transactions OR $100,000 in sales.

Note: Many states (including Illinois, South Dakota, Utah, and Wyoming) have recently removed the “200 transaction” threshold. Now, you typically only need a permit if your sales exceed $100,000 in that state, though you should check specific state rules as they evolve.

Special Note for E-commerce Sellers

Even if you sell exclusively on marketplaces that collect tax for you (Marketplace Facilitators), most states still require you to register for a seller’s permit in your home state or states where you have physical inventory.

Documents Needed to Apply

The following documents are usually required for sales tax permit registration. However, depending on your business entity and the nature of your business, the requirements may vary.

• Business name and address
• Social Security Number (SSN) or Employer Identification Number (EIN)
• Projected monthly sales
• Description of goods sold
• Bank Account Information: While some states request this to verify your identity or set up automated tax payments (EFT), it is not a universal requirement for the permit itself.

Steps on How to Get a Seller’s Permit

1. Firstly, identify where you have nexus. This includes your home state and any state where you have employees, inventory (like an FBA warehouse), or high sales volume.
2. Next, visit the State’s Department of Revenue Website and look for “Business Registration.”
3. Subsequently, complete the application by providing your business details.
4. Lastly, wait for your permit to arrive. Most states issue a digital permit number immediately or via mail within 7-10 business days.

States Guide

If your business has a physical or economic nexus in any U.S. state, click on the corresponding state below for a detailed guide on how to obtain a seller’s permit there. Each guide includes step-by-step instructions, application links, and important local requirements to help you stay compliant.

Cost of a Seller’s Permit

Currently, of the 45 states that impose a state or local sales tax, approximately 15 states charge a fee for issuing a sales tax permit. As of 2026, these application fees typically range from $0 to $100.

• Florida offers one of the lowest costs: $5 for paper applications and $0 for online registration.
• Connecticut charges the highest fee, $100 for a permit.
• Wyoming charges a one-time fee of $60 and remains a favorite for sellers because it does not require a license renewal.
• In Ohio, the application fee was increased to $50 in April 2025; however, this fee applies only to in-state vendors, while out-of-state sellers can generally register for free.

Here is a summary table of the seller’s permit costs of the mentioned states:

STATE	2026 FEE	NOTES
Connecticut	$100	Currently, the highest fee in the U.S.
Washington	Ranges from $50 to $111	First, there is a fee for the mandatory Business License. Typically, most sellers will pay between $50 and $111, depending on the specific endorsements and city-level registrations required.
Wyoming	$60	Notably, the one-time registration fee for Wyoming is $60. Likewise, out-of-state vendors are also often required to pay this same amount.
Ohio	$50 for Vendor’s Licenses; $0 for remote sellers	Ohio’s Vendor License fee doubled to $50 (HB 366) to support the Organized Crime Commission Fund. Out-of-state sellers (Remote Sellers) registering for a Seller’s Use Tax account typically still pay $0
Florida	$0 or $5	Free online; a $5 fee applies only to paper forms.

Find the cost of a sales tax permit in each state before filling out the application. Remember that the cost can also depend on the application method. For instance, Florida offers free online sales tax license registration but charges a $5 application fee for mail-in applications.

Renewal of Seller’s Permit

Some states require sellers to renew their permits, while others issue permits without an expiration date. The renewal requirements also vary by state that charges sales tax. The following states are examples of a few states that do not have a renewal requirement:

• Texas: No expiration; permit is valid until the business closes or the Comptroller cancels it for inactivity.
• California: Valid indefinitely.
• Virginia: Permanent at the state level. Also, local city/county business licenses in VA often do require annual renewal, but the sales tax permit itself does not.

On the other hand, states like Colorado, Indiana, Louisiana, and Pennsylvania issue renewable seller’s permits. The permit’s validity period, renewal fees, and other requirements vary by state.

Things to Remember

Consider a few important things when getting a sales tax certificate:

• Depending on the state, getting your seller’s permit may take a few days to a few weeks. Most states now offer immediate “temporary” permits upon online registration, but a formal physical certificate can still take 1–3 weeks to arrive.
• Some states impose penalties on businesses conducting their activities without a permit. Currently, many states have increased “failure to register” penalties.
  In Texas, for example,  operating without a permit is now treated with zero tolerance. Beyond back taxes and interest, you can face a Class C misdemeanor for operating without a permit, which generally carries a $500-per-day fine, plus mandatory collection of back taxes. Also, civil penalties of up to $2,000 per day for refusal to permit an audit or repeated failure to produce records after a demand.
• Some states require businesses with a physical location to display the permit.

What is the Difference Between a Seller’s Permit and a Reseller Permit?

Although they sound similar, there are differences between a seller’s permit and a reseller permit, as well as in their uses.

A reseller’s permit is a document issued by the state that allows sellers to buy products intended for resale without paying sales tax. It is also known as a reseller’s license, resale certificate, or wholesale certificate. It is used and accepted differently in every state.

While often used interchangeably, they are different. A Seller’s Permit is your license to collect tax. Meanwhile, a Resale Certificate is a document you give to your suppliers that allows them to buy inventory tax-free using your permit number. Therefore, you cannot have a valid resale certificate without first obtaining a seller’s permit.

Keeping it simple, resellers can purchase items tax-free for resale if sales tax is charged on those items when sold to the end customer.

Common Mistakes to Avoid

• Registering Too Late: You should have your permit before you make your first sale.
• Using the Wrong EIN: Ensure your permit matches the legal entity (LLC vs. Sole Proprietorship) listed with the IRS.

Frequently Asked Questions