Is your business registered in the states and other local jurisdictions where you conduct business? State registration is required in order to collect and remit sales tax. Many states have locally-administered taxing schemes that may be different from the state level.
File business license applications
To register with your state Department of Revenue (or Department of Taxation) and other state agencies, you will need to file a business license application. Once registered, you will receive your business license and a United Business Identifier (UBI)/tax registration number from the business licensing service.
If you have employees, you will also need to contact the Internal Revenue Service (IRS) to obtain a federal employee identification number (FEIN), also known as a federal tax identification number. You should contact any county or incorporated city in which you sell or provide services, to determine if additional licenses are needed. For more information, or to apply online, visit http://www.irs.gov/businesses/small/index.html or call 1-800-829-4933.
Provide your business registration name and UBI # to your GoLive Implementation Consultant when you are ready to implement your AvaTax solution.
To register your business, be prepared to answer at least the following questions:
- What is your business activity?
- What are your expected annual sales?
- Will you be selling goods to consumers?
- Do you or will you have employees within 90 days?
- Will your business use a name that is different from the owner or corporation name?
- Have you ever been acquired by another business or have you acquired a business?
- Where is your business located? This includes the physical location of your business or warehouse and the location(s) you sell your products or provide business services.
- What is your ownership type (i.e. sole proprietor, profit corporation, LLC, etc.)
For more information regarding registering your business, visit your state’s Department of Revenue website, or contact your AvaTax GoLive Implementation Consultant at firstname.lastname@example.org, if you would like to learn more about Avalara’s state-level sales tax registration services.
In many jurisdictions, there may be additional registration requirements or pre-requisites, including registration with the Secretary of State, bonding requirements based on estimated taxable sales, etc. You are responsible for completing these additional registration requirements or pre-requisites, even if you purchase Avalara’s state-level registration services.
To register your business, go to the states and local jurisdictions where you do business and complete the required steps.
The following list of state-level department of taxation/revenue sites will help get you to get started.
Scope of services
The specific scope of your project will be to provide tax registration services for the various taxing authorities. Accordingly, we will assist you and your company in registering for sales and use tax (or equivalent transaction tax) in each of these taxing jurisdictions.
Our assistance in this effort will be as follows:
- We will provide you with a questionnaire requesting pertinent information related to the registration process, such as: ownership information, historical or anticipated start date, estimated taxable sales, etc.;
- We will secure the appropriate registration form(s) from each taxing jurisdiction;
- We will complete the registration form(s) with the information you provide to the best of our ability;
- In some cases we may make additional information requests to you based on more specific information required on the registration form(s); and
- We will prepare a registration package to you with a cover letter detailing the remaining steps – including specific supporting documentation required – along with the registration form(s) for your final review and signature.
It is your responsibility to finalize the registration form(s) and submit them to the taxing authority along with any supporting documentation and fees required.
Sales Tax Registration Roles
This outlines the responsibilities to register to collect sales tax.
Avalara: Will prepare the sales tax registration forms on your behalf.
You: Will be asked to fill out two questionnaires that cover most questions on most jurisdiction applications. There may be other questions that will be needed based upon a specific application.
Avalara: Will contact you with these questions during the process.
Avalara: Some states require online registrations. In these cases, we will use the contact name and email address of your company as the contact person. We will prepare these returns as your agents; however, we cannot place our names on the applications, as we would need power of attorneys, which would dramatically increase the cost of this service and delay the process. We will use your contacts name as the login name and phone number as the password. We will give you this information once this registration is completed.
You: Note that some states will require other registrations. For example, Missouri requires that all companies registering for sales tax should also register with the Secretary of State. Other states may require that your company have a registered agent within a state. There are registered agency companies that can handle this requirement. Other states may require corporate tax registrations when the sales tax application is submitted. These additional non-sales tax registrations will not be prepared by Avalara (unless mandatory as part of the sales tax registration).
Avalara: Some states require a registration fee submitted with the registration. Some states require corporate officer signatures. We will FedEx these forms to you for the signatures and mailings.
You: will need to gather:
- Social Security Numbers of Corporate Officers: Required information for all states.
- Drivers License Numbers and Home Addresses of Corporate Officers: Required information for some states.
It may take a jurisdiction many weeks to assign a registration number. Some agencies will lose your forms. This is beyond Avalara’s control. Once the applications are submitted to the jurisdictions, it is up to you to follow-up with each agency. The agencies will only talk to the contact person on the application. It is recommended that you keep a copy of the signed application, so that you can fax the form to the agencies to obtain a permit number.
Some jurisdictions require the registration process be completed electronically using their online application process. In these cases, we will complete the online registration process on your behalf up to the point at which a final authorization is required for submission. We will provide you with the appropriate login credentials to review and complete the online registration application within a specific timeframe.
Other registration conditions
In many jurisdictions there may be additional registration requirements or prerequisites, including registration with the Secretary of State, bonding requirements based on estimated taxable sales, etc. You are responsible for completing these additional registration requirements or prerequisites.
The scope of this engagement addresses sales and use tax registration(s). Registering for sales and use tax collection and reporting can have an impact on federal, state and other tax reporting requirements. You should consult your internal or outside tax advisors regarding the other tax implications of this engagement – such as additional registration requirements for state income and/or franchise tax, business license tax, etc.
Local tax registrations
Many states have locally-administered taxing schemes that may be different from the state level. The services performed in this engagement are limited to the state-level only taxing authorities unless additional locally-administered jurisdictions are indicated as well in the Statement of Work (SOW).
Combined business tax registration
In some jurisdictions the sales and use tax registration process is part of a combined business registration that may involve other taxes. We will complete the registration application portion for sales and use tax; however, it’s up to you to address and complete as necessary the remainder of the combined business registration application.
Start date/effective date of tax registration
The registration process will require you to indicate the start or effective date of tax reporting in each jurisdiction. We include this key piece of information on the registration form(s) based on the information you provide to us. You should consider this information carefully as any historical activity conducted by your company in the taxing jurisdiction prior to this date could result in additional liability.
The timing related to your project is dependent on two key factors: 1) the quality and timeliness of information provided by you and 2) the number of registrations to be completed.