You should register to collect and pay taxes wherever your company conducts business. In the U.S. that means registering in each state or territory (and in some cases, individual cities, counties, or parishes). Internationally, that means registering with each country, with special rules for Canada, India, and Brazil. The places where you should register are known as nexus. If you're not sure whether your company has nexus in a specific country or a U.S. state or territory, speak to your tax professional.
When you register your company, be prepared to share some information.
- What your company does (also known as business activity)
- How much do you expect to sell yearly
- If you will be selling to other businesses or to consumers
- If you will be using your company's legal name
- If your company has ever been acquired by another company
- Where you do business including physical locations, warehouses, and where you sell products or provide services
- Your company's ownership type, for example, sole proprietor, LLC, or profit corporation
- The names of the company's officers or owners
Registering on your own
You must register with each place individually. Every place has its own requirements, so check with each of them to make sure you have everything you need.
- U.S. states and territories
Check the Department of Revenue websites for the places your company has nexus and follow the instructions online. Many places have prerequisites, such as registering with the Secretary of State or bonding requirements. Make sure you complete all of these requirements when you register.
- Countries other than the U.S.
Check the websites for the countries where your company has nexus. If your company has physical locations or imports products in the countries where you're registering, you may have additional requirements. Check with each country's registration website to make sure.
- Local tax jurisdictions
Some countries and U.S. states have local tax jurisdictions, which are cities, provinces, counties, or parishes with their own tax rules. You'll need to register for these places individually on top of the general country or state registration. Check with your tax professional if you think you might need to register your company in a place with local tax jurisdictions.
Registering through Avalara
We can ease the registration process by registering for you. Registration services may be limited to specific U.S. states, territories, local tax jurisdictions, or countries.
Here's how you can take advantage of this service:
- Complete any prerequisites for the places you want to register.
- Learn about the options we offer to register through Avalara.
- Speak to your Avalara account manager.
If you register in a state with local tax jurisdictions—but you don't see the jurisdictions you expect when you go through Avalara—you'll need to complete the process with those places on your own.
What you need to know about sales tax (Avalara University e-learning course)