Unfortunately, collecting sales tax isn’t quite as easy as tacking on an extra charge to your goods or services.
To legally collect sales tax, you need to get a seller’s permit or license from your state. In some states, you will obtain a seller’s permit on a state level. In others, you’ll also be required to obtain a license from your city, county, or jurisdiction.
To apply for a sales tax permit, visit your State Department’s website. Look for the “sales tax” or “sellers permit” (or license) application under the Department of Revenue. You’ll use that application to submit some basic information about your business, including your location, business type, and types of taxes you intend to collect.
As you collect sales tax, you’ll be required to remit it with a sales tax return to your state government on a regular basis. This may be required monthly, quarterly, or annually. How often you remit taxes will depend on how many sales you’re making, as higher sales volume means more frequent filing.
When your state gives you your seller’s permit, they should also let you know your filing frequency. At that same time, it’s wise to ask about your sales tax due date. Most states expect business owners to file their sales tax return by the 20th of the month following the taxable period, but this date can vary.