Starting a business in Washington 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 Business License in Washington D.C., also known as a seller’s permit This permit allows you to collect sales tax on taxable products and services from customers in Washington.
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 Washington D.C?
A business must register for a sales tax permit in Washington D.C if:- you meet physical or economic nexus within the state and
- you are selling taxable products or providing taxable services to customers in Washington D.C
How to Register for a Seller’s Permit in Washington D.C?
When applying for a seller’s permit in Washington D.C., you can use the online application process on the D.C. Office of Tax and Revenue website to complete your sales tax registration.1. Where to Apply for a Seller’s Permit in Washington D.C?
The first step to register for a sales tax permit online is to go to My Tax DC website and click the title “Register a New Business – Form FR-500” under the ‘Business’ section. Once you click this title, you will be led to a Business Registration landing page where you must complete your online tax registration form.2. What Information Do You Need To Get A Seller’s Permit in Washington D.C?
To successfully acquire a seller’s permit in Washington D.C., 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 Washington D.C.:- 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, Title, Address, and SSN of owners, partners, or officers
- Business Activity Details: Date & State of Incorporation, start date with Washington D.C. (nexus start date), Estimated Annual Taxable Sales in Washington D.C.
- Based on your entity type, you might need to upload your Articles of Incorporation or Organizatio
- NAICS Code
3. How Much are the Fees for Applying for and Renewing a Seller’s Permit in Washington D.C?
Registering for a sales tax permit in Washington D.C. is free. However, you are charged a $50 processing fee for registering your business with Washington D.C. Washington D.C. sales tax permit must be renewed every two (2) or four (4) years unless otherwise specified.4. What are Other Ways to Register for a Seller’s Permit in Washington D.C?
- 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.