Starting a business in Louisiana is an exciting venture, but it’s crucial to understand the legal requirements that come with it. A common area of confusion for many out-of-state business owners is whether they need a seller’s permit, a sales tax permit, or a Direct Marketer Permit. The latter allows sellers without a physical presence in Louisiana to collect sales tax on taxable products and services from customers in the state.
In Louisiana, sellers are classified based on their sales tax nexus and tax obligations:
- Dealer – a seller with a physical presence in Louisiana, required to collect and remit both state and local sales taxes.
- Out-of-state Seller – a seller with no physical presence in Louisiana. Depending on their economic nexus status, they may be required to collect and remit sales tax or may voluntarily choose to do so.
- Remote Retailer – an out-of-state seller with over $50,000 in annual gross receipts from sales delivered into Louisiana (including affiliate sales). Must comply with reporting requirements unless they voluntarily register to collect and remit sales tax.
- Direct Marketer – an out-of-state seller that can voluntarily collect a flat 8.45% sales tax. If they exceed economic nexus thresholds, they become a “Dealer.”
- Remote Seller – an out-of-state seller with over $100,000 in sales in Louisiana. Must collect and remit use tax.
- The Ultimate Business Guide to Sales Tax in Louisiana
- What is a Seller’s Permit?
- Louisiana Sales Tax Rate
Who Needs a Seller’s Permit in Louisiana?
A Louisiana Direct Marketer Permit is needed for out-of-state sellers who:- have no physical presence in Louisiana (i.e., they are not considered a Dealer)
- do not meet the economic nexus threshold ($100,000 in sales annually)
- want to voluntarily collect and remit sales tax at the flat 8.45% rate instead of dealing with varying state and local tax rates
How to Register for a Direct Marketer Permit in Louisiana?
When applying for a Direct Marketer Permit in Louisiana, you can use the online application process on the Louisiana Department of Revenue website to complete your sales tax registration.1. Where can you Apply for a Direct Marketer Permit in Louisiana?
The first step in registering for a Direct Marketer Permit online is to go to the Louisiana Department of Revenue and click the Louisiana Taxpayer Access Point (LaTAP) option located at the top menu. Then, select Use LaTAP Now to proceed. On the LaTAP page, locate the Registration section and click Register My Business, which will direct you to the Online Business Registration page. Under the Registration Selection section, choose Register My New Business and click Next to continue. You will then follow through the prompts that walk you through your registration process and provide the necessary information. When you reach the Frequently Registered Accounts section, select Sales as your tax account type. During your registration process, you will also create an online user profile. Additionally, LaTAP also allows you to enter your Banking Information to enable quick and easy payments. Complete all these steps. Under the Review section, make sure to double-check all the information you’ve added. Once done, click Submit.2. What Information do you Need to Get a Seller’s Permit in Louisiana?
To successfully acquire a Direct Marketer Permit in Louisiana, 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 Louisiana:- 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 Louisiana (Nexus Start Date)
- NAICS Code
3. How Much are the Fees for Applying for and Renewing a Seller’s Permit in Louisiana?
Registering for a Direct Marketer Permit in Louisiana is free, and you won’t need to provide payment details to acquire your permit. However, the parishes may impose additional requirements and fees. Louisiana Direct Marketer Permit do not need to be renewed and remain valid for as long as the business exists without any changes in ownership or structure.4. What are Other Ways to Register for a Seller’s Permit in Louisiana?
- 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.