Starting a business in Texas 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 seller’s permit in Texas, also known as a sales tax permit. This permit allows you to collect sales tax on taxable products and services from customers in Texas 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 Texas?
A business must register for a sales tax permit in Texas if:- you meet physical or economic nexus within the state
- you are selling taxable products or providing taxable services to customers in Texas and
- you acquire tangible products or taxable services from out-of-state suppliers that do not hold a Texas permit
How to Register for a Seller’s Permit in Texas?
When applying for a Sales Tax Permit in Texas, you can use the online application process on the Texas Comptroller of Public Accounts website to complete your sales tax registration.1. Where can you Apply for a Seller’s Permit in Texas?
The first step to register for a sales tax permit online is to go to Texas Comptroller of Public Accounts eSystems website and click the title “First Time User-Sign Up.” After setting up your profile, you’ll be taken to the eSystems Menu. Here, choose “Texas Sales and Use Registration.” This option will lead you to the application for a sales tax permit.2. What are the Requirements to Get a Seller’s Permit in Texas?
Certain information and documents must be prepared and submitted to successfully acquire a seller’s permit in Texas. The following is a list of the necessary information and documents required to register a sales tax permit in Texas:- 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, Driver’s License and SSN of owners, partners, or officers
- Business Activity Details: Date & State of Incorporation, date of the first sale in Texas, Estimated Monthly Taxable Sales in Texas
- NAICS Code
3. How Much are the Fees for Applying for and Renewing a Seller’s Permit in Texas?
Registering for a sales tax permit in Texas is free, but be prepared to pay for a security bond as it might be required. Texas 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 Texas?
- 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: First, for an in-mail application, print and sign the completed AP-201, Texas Application, attach the necessary documents and payment, and mail it to the address provided on the form or the state’s website.