A State-by-State Guide to Seller’s Permits

If your business plans to sell products or services, most states will require you to obtain a seller’s permit. This seller’s permit can also be called a sales tax license or sales and use tax permit. The process and fees for obtaining a seller’s permit vary by state, as do the rules for remote sellers.

States that require a seller’s permit or sales tax license will require businesses to collect sales tax on products and services sold to customers living in their states. This tax will then be reported and remitted to the state on a predefined schedule.

Failure to collect and remit sales taxes to the appropriate government body may result in hefty fines and require you to pay back taxes.

There are a lot of nuances at the state level, which can be very confusing. Here are some examples of the variations that can occur:

• In most states, the sale of all products (and many services) is subject to sales tax unless a statutory exemption applies. In states that don’t collect sales tax, businesses are still required to register.
• Some states require sellers to have a business license, while some states require excise tax to be collected.
• Several states collect sales and use taxes. Sales taxes are collected and remitted by the retailer making the sale. If the seller in these states does not collect sales taxes, the buyer (consumer) must pay use taxes.
• In addition to the state sales tax, many municipalities levy a local sales and use tax on the same products and services subject to the state sales tax. Sales tax rates are based on the address of the customer receiving the products and services, not on the seller’s location.

Since the 2018 Supreme Court ruling on the South Dakota v. Wayfair case, remote sellers (or out-of-state retailers) are subject to sales taxes in other states when and if the business reaches the threshold for economic nexus. This applies even if they do not have a physical presence in the state. Each state sets its own threshold for economic nexus, although, at a minimum, states can mandate that remote sellers with more than 200 transactions or $100,000 in-state sales can be required to collect and remit sales taxes to the state where the goods are purchased.

All of the state-by-state nuances can be overwhelming, so I’ll provide a state-by-state guide on the type of seller’s licenses required in each state, what to do if you’re a remote seller with economic nexus, and where to obtain the proper business licenses and seller’s permits.

Reference Materials for Sales Tax, Nexus, and Licenses

The below state guides might reference a number of topics that may be new to you. If you’d like to learn more about these topics as you reference your state requirements, below is a great list of educational articles to help you along the way.

• What’s the Difference Between Sales Tax and Seller’s Use Tax?
• Does Your Business Need a Sales Tax License?
• What is a Reseller License?
• What You Should Know About Calculating Sales Tax for Business
• What You Need to Know About Collecting Sales Tax
• State by State Guide to Economic Nexus
• Register for Sales & Use Tax
• Register for Foreign Qualification

State-by-State FAQs for Seller’s Permits and Sales Tax

Do I need a wholesale license or seller’s permit in Alabama?

In Alabama, you must obtain a privilege license to conduct business in the state.

Do I need to register my out-of-state business in Alabama?

Every person and company engaged in business in Alabama requires a privilege license. In addition, all new businesses should register with the Alabama Secretary of State and get a sales and use tax account through My Alabama Taxes.

What if my business is incorporated?

Any out-of-state corporation must obtain a certificate of authority before transacting business in the state.

Where do I obtain an Alabama privilege license?

You can obtain a privilege license through the city (or cities) where the company conducts business. For city contact information, visit the Alabama League of Municipalities website.

How much does it cost to obtain an Alabama privilege license?

License fees vary based on the profession and/or the location of the business.

Do I need a wholesale license or seller’s permit in Alaska?

Although Alaska has no statewide sales tax, several localities impose their own sales taxes. However, a business license is required to conduct business in Alaska.

Do I need to register my out-of-state business in Alaska?

An Alaska business license is required to conduct any business activity, whether or not you have a physical presence or physical location in the state. Learn more at the Alaska Remote Seller Sales Tax Commission website. 

What if my business is incorporated?

Businesses incorporated in another state must register with the Alaska Corporations Section to obtain an Alaska Entity Number. Sole proprietors and partnerships are not required to register with the Alaska Corporations Section.

Where do I obtain an Alaska business license?

You can obtain an Alaska business license online through the Alaska Department of Commerce.

How much does it cost to obtain an Alaska business license?

The fee for a business license is $50 per year.

Do I need a wholesale license or seller’s permit in Arizona?

In Arizona, you must obtain a transaction privilege tax license or TPT license to conduct business in the state.

Do I need to register my out-of-state business in Arizona?

Your business must register with the Arizona Department of Revenue (AZDOR) if your company conducts any taxable business activity in Arizona. See the AZDOR website to see if your company must register.

What if my business is incorporated?

Out-of-state corporations and LLCs must register with the Arizona Corporation Commission.

Where do I obtain an Arizona TPT License?

TPT filings, payments, and renewals are available at AZTaxes.gov.

How much does it cost to obtain an Arizona TPT License?

The fee to obtain a TPT license is $12.

Do I need a wholesale license or seller’s permit in Arkansas?

In Arkansas, persons or companies selling taxable goods or services must obtain a state sales tax permit.

Do I need to register my out-of-state business in Arkansas?

Remote sellers should register with the Arkansas Taxpayer Access Point (ATAP) or the Streamlined Sales Tax Registration System to collect and remit Arkansas sales and use taxes.

What if my business is incorporated?

Corporations and LLCs must file for a Certificate of Registration with the Arkansas Secretary of State (SOS).

Where do I obtain an Arkansas sales tax permit?

Companies can obtain a sales tax permit through the Arkansas Taxpayer Access Point (ATAP) or the Streamlined Sales Tax Registration System to register for multiple states.

How much does it cost to obtain an Arkansas sales tax permit?

The fee to obtain a sales tax permit is $50.

Do I need a wholesale license or seller’s permit in California?

Persons or companies selling taxable goods or services in California are required to obtain a seller’s permit.

Do I need to register my out-of-state business in California?

Persons or companies making three or more sales in California in 12 months are required to have a seller’s permit.

What if my business is incorporated?

Corporations and LLCs must register at bizfileOnline.sos.ca.gov.

Where do I obtain a California seller’s permit?

Apply with the California Department of Tax and Fee Administration (CDTFA) for a seller’s permit.

How much does it cost to obtain a California seller’s permit?

There is no charge for a seller’s permit in California.

Do I need a wholesale license or seller’s permit in Colorado?

Persons or companies selling taxable goods in Colorado are required to obtain a sales tax license. In Colorado, services are not subject to sales tax.

Do I need to register my out-of-state business in Colorado?

In general, retailers making sales in Colorado are required to collect the applicable state and local sales taxes. And if the business makes both retail and wholesale sales, the retail sales tax license allows both kinds of sales.

What if my business is incorporated?

Corporations and LLCs can obtain authority to transact business in Colorado by filing a Statement of Foreign Entity Authority with the Colorado Secretary of State.

Where do I obtain a Colorado sales tax license?

Apply for the Colorado sales tax license at MyBizColorado.

How much does it cost to obtain a Colorado sales tax license?

A new sales tax license requires a $50 deposit plus a $4-$16 fee. The $50 is refundable after the business has collected and paid $50 in state sales taxes. 

Do I need a wholesale license or seller’s permit in Connecticut?

Persons or companies selling taxable goods or services in Connecticut are required to obtain a sales and use tax permit.

Do I need to register my out-of-state business in Connecticut?

Anyone engaged in business in Connecticut must register with the Department of Revenue Services (DRS) Taxpayer Service Center for a sales and use tax permit.

What if my business is incorporated?

Every corporation and LLC that conducts business (or has the right to conduct business) in Connecticut must register with the DRS myconneCT portal.

Where do I obtain a Connecticut sales and use tax permit?

Businesses can obtain a sales and use tax permit through the myconneCT portal.

How much does it cost to obtain a Connecticut sales and use tax permit?

The fee to obtain a sales and use tax permit is $100.

Do I need a wholesale license or seller’s permit in Delaware?

Delaware does not have sales tax and, therefore, does not require a sales tax license or seller’s permit.

Do I need to register my out-of-state business in Delaware?

Delaware requires a state-regulated business license for all businesses generating sales within the state.

What if my business is incorporated?

If your business is incorporated in another state and doing business in Delaware, you must register with the Delaware Division of Corporations.

Where do I obtain a Delaware business license?

Businesses can register and obtain a license to operate in Delaware through the Delaware OneStop online portal.

How much does it cost to obtain a Delaware business license?

The fee for a business license is $75 per year.

Do I need a wholesale license or seller’s permit in Florida?

Persons or companies selling taxable goods or services in Florida must obtain a Florida sales tax license.

Do I need to register my out-of-state business in Florida?

Remote sellers must register with the Florida Department of Revenue Tax Application portal.

What if my business is incorporated?

Corporations and LLCs must register to conduct business in Florida with the Division of Corporations.

Where do I obtain a Florida sales tax license?

Use the Department of Revenue’s online Florida Business Tax Application interactive wizard to determine your business’s tax registration requirements.

How much does it cost to obtain a Florida sales tax license?

There is no fee to obtain a Florida sales tax license.

Do I need a wholesale license or seller’s permit in Georgia?

Persons or companies selling taxable goods or services in Georgia must obtain a sales tax permit.

Do I need to register my out-of-state business in Georgia?

Any individual or business entity conducting sales in Georgia is required to register for a sales and use tax number.

What if my business is incorporated?

Any corporation or LLC initially formed in another state (foreign entity) must register with the Georgia Secretary of State.

Where do I obtain a Georgia sales tax permit?

Online registration is available through the Georgia Tax Center (GTC). Remote sellers may also register for a Georgia sales tax permit through the Streamlined Sales Tax Registration System.

How much does it cost to obtain a Georgia sales tax permit?

There is no fee to obtain a Georgia sales tax permit.

Do I need a wholesale license or seller’s permit in Hawaii?

Persons or companies selling taxable goods or services in Hawaii must obtain a general excise tax (GET) license.

Do I need to register my out-of-state business in Hawaii?

Anyone who receives income from conducting business activities in Hawaii must register with the Hawaii Department of Taxation (DOTAX).

What if my business is incorporated?

A foreign corporation (one formed in a state other than Hawaii) cannot “transact business” in Hawaii until it obtains a certificate of authority from the State of Hawaii’s Department of Commerce and Consumer Affairs.

Where do I obtain a Hawaii GET License?

Register online through the DOTAX website at hitax.hawaii.gov or the Hawaii Business Express website.

How much does it cost to obtain a Hawaii GET License?

A GET license costs a one-time $20 fee.

Do I need a wholesale license or seller’s permit in Idaho?

Persons or companies selling taxable goods or services in Idaho are required to obtain a seller’s permit.

Do I need to register my out-of-state business in Idaho?

All persons and companies (no matter what the state of formation) wanting to conduct business in Idaho as sellers must apply for a seller’s permit.

What if my business is incorporated?

All corporations and LLCs must register their name and entity type with the Idaho Secretary of State before engaging in business.

Where do I obtain an Idaho seller’s permit?

You can obtain a seller’s permit from the Idaho State Tax Commission.

How much does it cost to obtain an Idaho seller’s permit?

There is no fee to obtain a seller’s permit in Idaho.

Do I need a wholesale license or seller’s permit in Illinois?

Persons or companies selling taxable goods in Illinois must obtain an Illinois sales tax permit.

Do I need to register my out-of-state business in Illinois?

Sellers of goods in Illinois must register with the Illinois Department of Revenue to collect sales tax. Most services are not taxed in Illinois.

What if my business is incorporated?

Foreign corporations and LLCs must apply for Authority to Transact Business in Illinois.

Where do I obtain an Illinois sales tax permit?

Register for an Illinois sales tax permit with the Illinois Tax ID Bureau.

How much does it cost to obtain an Illinois sales tax permit?

There is no fee to obtain a sales tax permit in Illinois.

Do I need a wholesale license or seller’s permit in Indiana?

In Indiana, persons or companies selling taxable goods or services must obtain a seller’s permit, called a Registered Retail Merchant Certificate (RRMC).

Do I need to register my out-of-state business in Indiana?

All businesses conducting sales in Indiana must register with the Department of Revenue. This registration can be completed in the INBiz online portal.

What if my business is incorporated?

Corporations and LLCs must register with the Access Indiana online portal.

Where do I obtain an Indiana RRMC?

An Indiana RRMC can be obtained through the INBiz online portal. Remote sellers may also register for Indiana sales tax through the Streamlined Sales Tax Registration System.

How much does it cost to obtain an Indiana RRMC?

There is no fee to obtain an Indiana RRMC.

Do I need a wholesale license or seller’s permit in Iowa?

In Iowa, persons or companies selling taxable goods or services are required to obtain a business tax permit.

Do I need to register my out-of-state business in Iowa?

Any person or business that sells taxable goods or services in Iowa must complete a business tax permit registration.

What if my business is incorporated?

Corporations and LLCs must submit a foreign registration statement with the Iowa Secretary of State to conduct business in Iowa.

Where do I obtain an Iowa business tax permit?

You can obtain an Iowa business tax permit from the Iowa Department of Revenue’s GovConnectIowa website. Remote sellers may also register for Iowa sales tax through the Streamlined Sales Tax Registration System.

How much does it cost to obtain an Iowa business tax permit?

There is no fee to obtain an Iowa business tax permit.

Any person or business that sells taxable goods or services in Kansas must obtain a seller’s permit.

Do I need a wholesale license or seller’s permit in Kansas?

Persons or companies selling taxable goods or services in Kansas are required to obtain a seller’s permit.

Do I need to register my out-of-state business in Kansas?

Remote sellers of taxable goods and services in Kansas must register the business with the Kansas Department of Revenue to collect and pay sales tax. Remote sellers may also register for Kansas sales tax through the Streamlined Sales Tax Registration System. 

What if my business is incorporated?

Any out-of-state business entity doing business in Kansas must file an application for authority with the Kansas Secretary of State. The application must be faxed or mailed to the Secretary of State.

Where do I obtain a Kansas seller’s permit?

Seller’s permits are available online on the Department of Revenue website.

How much does it cost to obtain a Kansas seller’s permit?

There is no fee to obtain a Kansas seller’s permit.

Do I need a wholesale license or seller’s permit in Kentucky?

In Kentucky, persons or companies selling taxable goods or services are required to obtain a seller’s or sales tax permit.

Do I need to register my out-of-state business in Kentucky?

Remote sellers of taxable goods and services in Kentucky must register the business with Kentucky’s One-Stop Business Portal. Remote sellers may also register through the Streamlined Sales Tax Registration System. 

What if my business is incorporated?

Corporations and LLCs in Kentucky must file an application for authority with the Kansas Secretary of State.

Where do I obtain a Kentucky sales tax permit?

Kentucky sales tax permits are available through the Kentucky One-Stop Business Portal.

How much does it cost to obtain a Kentucky sales tax permit?

There is no fee to obtain a Kentucky seller’s permit.

Do I need a wholesale license or seller’s permit in