Money, sales tax and addresses · A term for founders abroad
What is a sales tax permit?
seller's permit. A state registration that lets a seller collect its sales tax and buy stock for resale tax-free; needed once there's nexus, and not a business licence.
Checked against the IRS's instructions and the states' own rules. Reviewed by Saais Patel, compliance reviewer.
Term 88 of 105 in the glossary, filed under S.Every term, A to Z
Sales tax permit, for a founder abroad.
Depending on the state, it's called a seller's permit, sales tax permit, resale licence or certificate of registration. It isn't a licence to sell: it's a sales tax registration, which lets you collect the state's tax and is the basis for a resale certificate.
The state issues it free or for a small fee once you register. A company with nexus nowhere needs none. We register you in one state for $149 plus the state's fee.
Read next · guide · 3 minBusiness licences for a US company run from abroad: what you need, which is usually nothingWhat founders ask next.
- Is a seller's permit a business licence?
- No. It's a sales tax registration, needed once you have nexus in a state or when a wholesaler asks for a resale certificate.
- Do I need a seller's permit to sell online from abroad?
- Only in states where you have sales tax nexus. Most foreign-owned stores have none in their first year.
03 · See also
- Money, sales tax and addressesEconomic nexusSales into a state above its threshold, usually $100,000 a year, which makes a seller elsewhere collect that state's sales tax with no presence there.Read the term
- Money, sales tax and addressesResale certificateA form a registered seller gives a supplier to buy goods for resale without paying sales tax, based on its sales tax registration in a state.Read the term
- Money, sales tax and addressesNexusThe link with a state that obliges a seller to collect its sales tax, created by a presence there or by sales above the state's threshold.Read the term
- Money, sales tax and addressesMarketplace facilitatorA marketplace such as Amazon or Etsy that state law makes responsible for collecting sales tax on its sellers' sales.Read the term
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