Starting a business in Connecticut is an exciting venture, but it’s crucial to understand the legal requirements that come with it. A common area of confusion for many new business owners is understanding the need for a Sales and Use Tax Permit in Connecticut, also known as a seller’s permit. This permit allows you to collect sales tax on taxable products and services from customers in Connecticut.
This blog will guide you through each step of applying for a sales tax permit, with clear instructions to help you and your business begin collecting sales tax effortlessly.
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Who Needs a Seller’s Permit in Connecticut?
A business must register for a sales tax permit in Connecticut if:- you meet physical or economic nexus within the state and
- you are selling taxable products or providing taxable services to customers in Connecticut.
How to Register for a Seller’s Permit in Connecticut?
When applying for a seller’s permit in Connecticut, you can use the online application process on the Connecticut State Department of Revenue Services website to complete your sales tax registration.1. Where to Apply for a Seller’s Permit in Connecticut?
The first step to register for a sales tax permit online is to go to MyConnectCT website and click on “New Business/Need a CT Registration Number?” under the Businesses section. You will see an overview page that will show you details about “When should I register” and “What do I need to register.” Click next, and you will be directed to the “Reason for registration” page. You will need to select “Requesting a Connecticut Registration number/Opening a new business including but not limited to:” to register for a sales tax permit account. You will then follow through the prompts that walk you through your registration process and provide the necessary information. When you reach the account type section, make sure to select “Sales & Use Tax.” During your registration process, you will be required to create an online user profile with a username and password with the state. Once your logon is created, you can manage your current sales tax account online.2. What Information Do You Need to Get a Seller’s Permit in Connecticut?
To successfully acquire a seller’s permit in Connecticut, it’s important to prepare and provide specific information and documents. The following is a list of the necessary information and documents required to register a sales tax permit in Connecticut:- Business Identification Information: Legal Business Name, Physical Address, Mailing Address
- Business Entity Structure (i.e., Sole Proprietorship, Partnership, Subchapter S Corp., Corporation, LLC, etc.)
- Federal Employer Identification Number (EIN or FEIN)
- Name, Address, and SSN of Owners, Partners, or Officers
- Business Activity Details: Date & State of Incorporation, Start Date with the State of Connecticut (Nexus Start Date), Month of Fiscal Year End
- NAICS Code
3. How Much are the Fees for Applying for and Renewing a Seller’s Permit in Connecticut?
Registering for a sales tax permit in Connecticut costs $100. The state charges a non-refundable registration fee. You must pay this fee using a checking or savings account, as the State does not accept credit card payments for permit fees. Connecticut sales tax permit renews automatically every two years for free if your account is active and in good standing.4. What are Other Ways to Register for a Seller’s Permit in Connecticut?
- Use TaxHero. Registering for a seller’s permit, mainly when it involves multiple permits, can be a tedious and time-consuming task requiring much effort. Let the experts at TaxHero save you from this hassle, and let us handle the registration process in all states where you have nexus as part of our all-inclusive sales tax service.