Starting a business in Kansas 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 Retailers’ Compensating Use Tax Registration Certificate, also known as a seller’s permit. This permit allows you to collect sales tax on taxable products and services from customers in Kansas.
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 Kansas?
A business must register for a sales tax permit in Kansas if:
How to Register for a Seller’s Permit in Kansas?
When applying for a seller’s permit in Kansas, you can use the online application process on the Kansas Department of Revenue website to complete your sales tax registration.
1. Where can you Apply for a Seller’s Permit in Kansas?
The first step to register for a sales tax permit online is to go to the Kansas Department of Revenue. You will create an online login account with the state during registration. Click on “Customer Service Center” to create an online account.
Make sure to enter all required information to proceed. To continue, click “Register with this Information.”
Once your registration is complete, check your email for your 20-digit verification code. Go back to the page and click “Continue” to enter your 20-digit verification code.
Go to the homepage of your account by clicking “Home.” Select “New Tax Registration.”
You will then follow through the prompts that walk you through your registration process and provide the necessary information. When you reach the Tax Type section, select “Retailers’ Compensating Use Tax.”
2. What Information do you Need to Get a Seller’s Permit in Kansas?
To successfully acquire a seller’s permit in Kansas, 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 Kansas:
- 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 Kansas (Nexus Start Date), Estimated Annual Taxable Sales in Kansas, Accounting Method (Cash vs. Accrual)
- NAICS Code
3. How Much are the Fees for Applying for and Renewing a Seller’s Permit in Kansas?
Registering for a sales tax permit in Kansas is
free, and you won’t need to provide payment details to acquire your permit.
Kansas sales tax permits do not need to be renewed and remain valid for as long as the business exists without any changes in ownership or structure. Qualified remote sellers can also register through the Streamlined Sales Tax Registration System (SSTRS).
4. What are Other Ways to Register for a Seller’s Permit in Kansas?
- 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 must fill out the Kansas Business Tax Application Form (CR-16), attach the necessary documents and payment, and mail it to the address on the form. Keep in mind that paper applications may take longer to process compared to online submissions.
What’s Next?
After your online submission, you should receive your seller’s permit by mail within 7 to 10 business days.
A change in ownership type, such as transitioning from a sole proprietorship to a partnership, LLC, or corporation or obtaining a new Federal Identification Number, requires re-registration.
After obtaining your permit, sign into the KDOR Customer Service Center and create your online user profile.
Make sure to call the Kansas Department of Revenue at (785) 296-6993 or email KDOR_BusinessTaxEServices@ks.gov to request your access code assignment. Once this is completed, you can start connecting your tax account to your login and begin your electronic filings.
Obtaining a seller’s permit requires you to collect sales tax for eligible sales in Kansas. The document will also specify your filing frequency for sales tax returns and due dates.
Remember that if your business has a physical location in Kansas, the Seller’s Permit must be visibly displayed at all times at the place for which the certificate is issued.
If you ever encounter any difficulties, have any questions, or prefer TaxHero to manage these tasks on your behalf, don’t hesitate to reach out! Contact us today. Contact us today.
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