Starting a business in Tennessee 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 Tax Permit in Tennessee, also known as a seller’s permit. This permit allows you to collect sales tax on taxable products and services from customers in Tennessee and remit it to the state.
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 Tennessee?
A business must register for a sales tax permit in Tennessee if:- you meet physical or economic nexus within the state and
- you are selling taxable products or providing taxable services to customers in Tennessee
How to Register for a Seller’s Permit in Tennessee?
When applying for a Seller’s Permit in Tennessee, you can use the online application process on the Tennessee Department of Revenue website to complete your sales tax registration.1. Where to Apply for a Seller’s Permit in Tennessee?
The first step to register for a sales tax permit online is to go to Tennessee Taxpayer Access Point (TNTAP) and register your business by clicking on “View Exemption/Registration Links” found in the Exemption/Registration section and then clicking “Register a New Business.” Follow the prompts and fill in the required fields. When you reach the account type section, make sure to select “Sales and Use Tax.” You will also be asked to answer a short survey that will determine whether you’ll need a Tennessee sales and use tax account or not. Follow through with the results of the survey accordingly. Remember to provide all the required information to finish the registration process successfully. Once finished, click “Submit.”2. What Information Do You Need to Get a Seller’s Permit in Tennessee?
To successfully acquire a seller’s permit in Tennessee, 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 Tennessee:- Business Identification Information: Legal Business Name, Physical Address, Mailing Address
- Business Entity Structure (i.e., Sole Proprietorship, Partnership, Subchapter S Corp., Sorporation, 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 Tennessee (Nexus Start Date), Estimated Monthly Sales Tax Liability, Estimated Annual Taxable Sales in Tennessee
- NAICS Code
3. How Much are the Fees for Applying for and Renewing a Seller’s Permit in Tennessee?
Registering for a sales tax permit in Tennessee is free, and you won’t need to provide payment details to acquire your permit. Tennessee 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.4. What are Other Ways to Register for a Seller’s Permit in Tennessee?
- 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.