Starting a business in Illinois 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 seller’s permit in Illinois, also known as a sales tax license or sales tax permit. This allows you to collect sales tax on taxable products and services from customers in Illinois and remit it to the state.
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 Illinois?
A business must register for a sales tax permit in Illinois if:- you meet physical or economic nexus within the state and
- you are selling taxable products or providing taxable services to customers in Georgia
How to Register for a Seller’s Permit in Illinois?
When applying for a Seller’s Permit in Illinois, you can use the online application process on the Illinois Department of Revenue website to complete your sales tax registration.1. Where can you Apply for a Seller’s Permit in Illinois?
The first step is to register your business at MyTaxIllinois under the link “Register a New Business (Form REG-1).” During your registration process, you will create an online login account with the State. Once your GTC logon is created, you can manage your current sales tax account(s) and register for additional accounts related to your business.2. What Information do you Need to Get a Seller’s Permit in Illinois?
To successfully acquire a seller’s permit in Illinois, 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 Illinois:- 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 Illinois (nexus start date), Estimated Monthly Sales Tax Liability in Illinois,
- NAICS Code
3. How Much are the Fees for Applying for and Renewing a Seller’s Permit in Illinois?
Registering for a sales tax permit in Illinois is free, and you won’t need to provide payment details to acquire your permit. The Certificate of Registration’s expiration is in one year but will be renewed automatically as long as you comply with all filing and payment requirements.- If you are a reseller (i.e., wholesaler, distributor, or manufacturer), your Certificate of Registration or License expires every three years and must be renewed manually on a paper Renewal Packet. This will be sent out 90 days prior to expiration.
- If you are a cigarette or tobacco distributor, your License expires every year.
4. What Are Other Ways To Register For A Seller’s Permit In Illinois?
- 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.
- Paper Application: You will need to fill out Form REG-1, attach the necessary documents and payment, and mail it to the address provided on the form.