Starting a business in North Carolina 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 Sales and Use Tax Permit, also known as sales tax permit or seller’s permit. This permit allows you to collect sales tax on taxable products and services from customers in North Carolina.
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.
Related Topics:
Who Needs a Seller’s Permit in North Carolina?
A business must register for a sales tax permit in North Carolina if:
How to Register for a Seller’s Permit in North Carolina?
When applying for a Sales and Use Tax Permit, you can use the online application process on the North Carolina Department of Revenue website to complete your sales tax registration.
1. Where can you Apply for a Seller’s Permit in North Carolina?
The first step to register for a sales tax permit online is to go to the North Carolina Department of Revenue website and select “Taxes and Forms” on the main menu. Select “Sales and Use Tax”. This should take you to the Sales and Use Tax page of the website.
Once you go to the next landing page, select “Registration” from the options below. Under Registration Information, select “Register Online.” Then select “Register Your Business Electronically”.
You will then follow through the prompts that walk you through your registration process and provide the necessary information. Make sure to enter all required information to proceed. When you reach the account type section, select “Sales and Use Tax and Other Taxes and Service Charge.”
Review all the information before you submit it. Once done, check the box to acknowledge that the application is complete and accurate. Lastly, enter your full name, phone number, and email address before clicking “Submit.”
2. What Information do you Need to Get a Seller’s Permit in North Carolina?
To successfully acquire a seller’s permit in North Carolina, 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 North Carolina:
- 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 North Carolina (Nexus Start Date), Estimated Monthly Sales Tax Liability in North Carolina, Accounting Method (Cash vs. Accrual)
- NAICS Code
3. How Much are the Fees for Applying for and Renewing a Seller’s Permit in North Carolina?
Registering for a sales tax permit in North Carolina is
free, and you won’t need to provide payment details to acquire your permit.
North Carolina 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 North Carolina?
What’s Next?
After your online submission, you should receive your Sales Tax Permit by mail within 8 to 10 business days. It also includes a letter with your assigned Account ID that you will use in future transactions like filing a sales tax return.
Obtaining a Sales and Use Tax Permit requires you to collect sales tax for eligible sales in North Carolina. 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 North Carolina, 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.
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