Do I need a sales tax permit before I start selling?

If your business sells taxable products or services, you usually need a sales tax permit before you collect sales tax or make taxable sales in that state. An LLC and EIN do not automatically register you for sales tax. Sales tax rules depend on what you sell, where you sell, where your customers are, and whether a marketplace collects tax for you. Some businesses never need a sales tax account. Others need one before their first sale.

Steps

1. Write down what you sell. Be specific. Physical products, digital goods, software, food, clothing, subscriptions, repairs, and services can be treated differently.

2. Write down where you sell. Start with your home state. Then add any states where you have inventory, employees, an office, events, or regular sales activity.

3. Check the state tax agency. Look for terms like “sales tax permit,” “seller’s permit,” “sales and use tax,” or “tax registration.” The name varies by state.

4. Confirm whether your product or service is taxable. Do not assume services are always exempt or products are always taxable. States can have special rules.

5. Register before collecting sales tax. If a permit is required, get it before adding sales tax to invoices, checkout pages, or receipts.

6. Set up your checkout or invoicing system. Track sales by state and local area if needed. Keep clean records from the start.

7. File on the schedule the state gives you. Some states still expect a return even when you had no taxable sales for that period. Follow the state’s filing instructions.

If you are still stuck

Open your Stratify roadmap and check the tax and license tasks for your business type and state. If you are unsure whether your specific product or service is taxable, ask the AI coach and include what you sell, where you sell, and whether you sell through your own site, invoices, or a marketplace.