Do I Need a Seller’s Permit? How to Get One (2025)

If you're opening a new retail store, you might wonder if you need a seller's permit. The short answer is: it depends. 

Most states in the US require a seller’s permit if you sell or lease tangible personal property which is subject to sales tax. However, there are a few states that don’t require sellers to obtain a permit. This can make it difficult to budget for your retail store.

Ahead, you’ll learn whether you need a seller’s permit and how to apply for one.

What is a seller’s permit?

A seller’s permit is a unique identifier a state government assigns to your business. It lets you collect sales tax on the items you sell in-store or online, which you are required to periodically send to the government, along with state tax forms.

A seller’s permit effectively makes you an intermediary between the government and your customers. They have different names from state to state, including:

• Sales tax license
• Vendor’s license
• Use tax permit
• Wholesale license
• Retail license
• Certificate of Authority
• Business tax account
• Sales permit

Seller’s permit vs. business license

A business license allows you to legally operate a business within a certain city or county. A seller’s permit, however, allows you to collect sales tax from customers on taxable goods or services.

Seller’s permit vs. resale license

If you’re a reseller, some states might require a resale certificate. This certificate lets you buy products tax-free if you intend to resell them.

A seller’s permit is a must-have, but a resale certificate is optional. The resale certificate lets you buy things without paying sales tax, since you’ll be reselling them and collecting tax from your customers.

Do I need a seller’s permit?

You typically need a seller’s permit if you:

• Operate a business in a state with a state sales tax.
• Sell goods or services subject to sales tax.
• Have a significant physical presence (nexus) in the state.

States that require seller’s permits

For most states, economic nexus kicks in at 200 transactions yearly or $100,000 in annual sales. If you hit these numbers, you’re generally required to collect and pay sales tax there, even if you don’t have a physical presence in that state. Track these state-specific thresholds and get permits as needed. 

Five states don’t require a sales tax permit at all:

• Delaware
• New Hampshire
• Oregon
• Alaska*
• Montana*

*While Alaska and Montana do not have a state sales tax, some local municipalities do have local sales taxes and may require local permits. Check with your local authority to see if you need a sales tax permit. 

Here’s a detailed list of each state’s sales tax requirements, but it’s always smart to double-check with your state’s Department of Revenue or a similar agency. Talking to local businesses in your industry, the consumer affairs office, or a certified public accountant (CPA) is a good idea, too.

💡Tip: It can get difficult to manage sales tax if you sell in different states, each with their own rates. Shopify Tax takes the stress out of compliance. Get notified when you exceed the threshold for each state, charge the appropriate sales tax at checkout, and submit tax returns directly from your Shopify admin.

“We no longer need to manually update sales tax information, saving us countless hours and reducing the risk of errors,” says Ailee Fei, founder of Daily Charme. “It’s been a game-changer for our small business.”

Types of businesses that require seller’s permits

Most businesses in the US need a seller’s permit to sell taxable goods or services, depending on their business type and state regulations. 

Here are businesses that often require a selling permit:

• Food service establishments: If you run a restaurant or café that prepares made-to-order food, you’ll likely require a permit to handle sales tax for those items.
• Retail businesses: If you’re buying wholesale goods or making products to sell online, in-store, or elsewhere to customers, you’ll have to get a permit if your state taxes those items. 
• Service-based businesses: Some states require service-based businesses like equipment repair shops, hair salons, and product-leasing companies to get a permit and deal with sales tax. Check with your state and local tax authorities to confirm if your business falls under taxable services.
• Ecommerce businesses: If you sell products online, you might need a permit. Rules vary by state—some treat you like a physical store, and others have permits specific for online businesses. You ought to collect taxes not just in your home state but in any state where your sales hit a certain amount. This is called “economic nexus.”
• Temporary stores: If you’re opening a retail store for a limited amount of time (such as a pop-up shop), you might need a temporary seller’s permit from the state.

How to get a seller’s permit in 6 steps

1. Check your state’s seller’s permit requirements
2. Register your business
3. Complete the seller’s permit application
4. Submit the application and pay the fee
5. Wait for approval
6. Receive your seller’s permit

1. Check your state’s seller’s permit requirements 

Do you sell goods or services subject to sales tax? If so, then you need a seller’s permit. This applies whether your business is a limited liability company (LLC), corporation, or sole proprietorship. 

If you own an online business, you are required to pay taxes in every state where you conduct business, not just where your business is based.

2. Register your business

Registering your business creates a legal entity recognized by the state. Start by picking a unique business name available in your jurisdiction. Then, decide on a business structure, such as a sole proprietorship, LLC, or corporation. 

Next, get an employer identification number (EIN) from the IRS website. Check if you need any other licenses, permits, or tax registrations from federal, state, or local agencies. 

Once you’ve done all this, you’re on your way to running your business legally. Remember, registering your business creates a legal entity, while getting a business license ensures you have the proper permissions to operate legally.

3. Complete the seller’s permit application

After your business is registered, you can apply for a seller’s permit. You can usually find this application form on your state’s Department of Revenue website or the agency that handles taxes.

When filling out the application, you’ll have to give details about your business, including:

• Your Social Security number (SSN) or business’s employer identification number (EIN)
• A legal form of identification (like a driver’s license)
• Your business name and contact details
• Type of business
• Your North American Industry Classification System (NAICS) code
• Expected monthly sales and taxable portion of those sales
• Bank account information
• Your accountant’s name and address
• Names and addresses of all your vendors

4. Submit the application and pay the fee

Once you’ve completed the application, you can submit it online, via mail, or in person. Submitting online is usually the fastest way.

Some states charge a fee for the permit, while others do not. A few states (like Nevada) may require a security deposit, especially if you have a history of non-compliance with tax laws or if your business is considered high-risk.

5. Wait for approval

After you submit your application, you’ll need to wait for the state to approve it. This can take anywhere from a day to several weeks, depending on the state and how you submitted it.

6. Receive your seller’s permit or resale certificate

Once approved, you’ll receive your seller’s permit. Keep it safe—you might require it to file taxes or buy items to resell. 

Note: Some states give permits that last for the entire life of the business, while others might be good only for a year or two. If it expires, you’ll need to apply again or renew it.

Cost to get a seller’s permit

The cost to obtain a seller’s permit can vary between zero to $100, depending on your state.. 

Out of 45 states that collect sales tax, only a few charge a fee for a seller’s permit. These fees range from $5 to $100:

• Florida charges the lowest fee, at $5, if you apply by mail (it’s free to apply online), and it doesn’t ask for a security deposit.
• Connecticut charges the highest, with a one-time $100 fee. 
• In Ohio, in-state sellers pay an application fee, while out-of-state sellers get the permit free. 

Responsibilities for a seller’s permit

Retailers have to meet these requirements when they possess a seller’s permit: 

• File regular tax returns. With a seller’s permit, you’re expected to collect sales tax from customers and submit regular tax returns to your state’s tax agency. Remember, you’re still required to file even if you didn’t collect any state sales tax during the filing period. If you don’t, you might face penalties. 
• Keep accurate records. Keep accurate records and pay taxes on time to avoid penalties.
• Display the seller’s permit in-store. If you have a physical store, some states require you to display your sales tax permit number so customers and inspectors can see it.

💡Tip: Shopify unifies order data from anywhere you sell, so you can easily keep tabs on how much money you’ve made in each state (both online and offline). Then, use accounting app integrations to import your data and keep on top of taxes. 

Do I need more than one seller’s permit?

In some cases, it’s possible that you might need more than one seller’s permit. You might need multiple seller’s permits if you:

• Run your business in several states or jurisdictions with different sales tax regulations 
• Sell products online to buyers in multiple locations (destination principle)
• Participate in trade shows or temporary sales in different states. You require additional seller permits for those locations
• Have multiple legal entities, like separate ones for your online and physical stores 
• Manage wholesale and retail operations (you might need different permits because of different tax rules)
• Are in states with special tax districts (these require separate permits in addition to the state permits)

At first, dealing with sales tax might seem easy. But it can get complicated as your business grows and you sell in more states. Imagine spending hours on each state’s filing—not a great use of your time. 

The solution? Use tax software to automate tracking, collecting, reporting, and filing your taxes across the US.

Apply for a seller’s permit for your retail business

Now that you know how to get a seller’s permit, you can start your business on a smooth note. You can handle the application yourself or hire a professional to help you out.

Once you get your permit and start scaling your business, tax software is the best way to efficiently pay all your state and local taxes on time while you focus on more important things, like growing your business.