Starting a business in New York 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 Certificate of Authority, also known as a sales tax permit or seller’s permit. This permit allows you to collect sales tax on taxable products and services from customers in New York.
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 New York?
A business must register for a sales tax permit in New York if:- you meet physical or economic nexus within the state and you are selling taxable products or providing taxable services to customers in New York; or
- you issue or receive New York State sales tax exemption documents or you operate a hotel or motel or receive amusement charges
How to Register for a Seller’s Permit in New York?
When applying for a Certificate of Authority in New York, you can use the online application process on the New York State website to complete your sales tax registration.1. Where to Apply for a Seller’s Permit in New York?
Applying for your Certificate of Authority consists of a two-step process. The first step to register for a sales tax permit online is to create a user profile by going to the New York State website, and under “I Need a NY.GOV ID,” you will click on the title “Register Here.” Follow the prompts to complete your NY.gov.ID Business Account Self-Registration. You will need this account before moving into the second step of the process. The second step to register for a sales tax permit is to go back to the login page and choose the “I have a NY.GOV ID” selection. Click the title “Login Here.” You will enter the username and password for the online account you just created. Once you have successfully logged in, select “Get Started” and follow the prompts to apply for your Certificate of Authority with New York.2. What Information do you Need to Get a Seller’s Permit in New York?
To successfully acquire a seller’s permit in New York, 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 New York:- 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, SSN, Ownership Percentage, and Primary Business Duties of owners, partners, or officers. Prior to applying, use Form DTF-17.1, Business Contact, and Responsible Person Questionnaire, to obtain the information required for each responsible party, including owners, partners, or officers of the business. Retain a copy of the questionnaire for your records for each person.
- Business Activity Details: Date & State of Incorporation, Start Date with the State of New York (Nexus Start Date)
- Tax Preparer Information (if applicable): (address, phone number, and preparer’s federal EIN)
- NAICS Code
3. How Much are the Fees for Applying for and Renewing a Seller’s Permit in New York?
Registering for a sales tax permit in New York is free, and you won’t need to provide payment details to acquire your permit. The New York sales tax permit does not need to be renewed and remains valid unless the New York State Department of Taxation and Finance sends you a notification letter requiring you to renew your sales tax permit. This is randomly selected by the State.4. What are Other Ways to Register for a Seller’s Permit in New York?
- 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.