How Do You Collect, Report, And Pay State Sales Taxes?
If your business sells a product or provides a services that is taxable, and if you are in a “sales tax” state, you will need to set up a process to collect and pay sales taxes and file sales tax returns periodically. This article will walk you through the steps involved in this process. (If your business is selling in Alaska, Delaware, Montana, New Hampshire, or Oregon, no sales tax is charged, so you don’t have to worry about this process. Lucky you.) It has been estimated that there are 11,000 tax collection entities in the U.S., so determining and collecting sales tax can be very complex!Difficulty: AverageTime Required: Varies By Volume of SalesHere’s How: • First, go to the website of your state Department of Revenue and register for your sales tax permit. You will first need to have your Federal Employer ID
