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:
- The Ultimate Business Guide to Sales Tax in North Carolina
- What is a Seller’s Permit?
- North Carolina Sales Tax Rate
Who Needs a Seller’s Permit in North Carolina?
A business must register for a sales tax permit in North Carolina if:- you meet physical or economic nexus within the state and
- you are selling taxable products or providing taxable services to customers in North Carolina
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?
- 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 can fill out a North Carolina Business Business Registration Application for Income Tax Withholding, Sales and Use Tax, and Other Taxes and Service Charge Form (NC-BR), attach the necessary documents and payment, and mail it to the address provided on the form.