1. Determine whether you require a sales tax license: You must register for a sales tax license if you intend to sell taxable products or services in DC. This applies to companies with physical locations in DC as well as those that conduct business online, such internet shops. However, you are exempt from registration if all of your sales are of non-taxable items or services, such as food or medical supplies.
2. Sign up for a Basic Business License (BBL): The DC Department of Consumer and Regulatory Affairs (DCRA) will issue you a BBL before you can submit an application for a sales tax license. All businesses operating in DC, whether or not they employ people, must acquire this license.
3. Submit an application for a sales tax license: After receiving a BBL, you can submit an application with the DC OTR for a sales tax license. Information about your company, including its legal name, address, and tax identification number, must be provided on the application, which can be submitted either online or by mail.
4. Pay the Application cost: To apply for a sales tax license in DC, you must pay a one-time cost of $77. This cost can be paid online or by mail in addition to your completed application. Do I Need a Registered Agent in Washington, DC? In order for your business to get legal and tax paperwork, you must name a registered agent if you’re creating a limited liability corporation (LLC) in the District of Columbia. This can be a person or a business with a physical address in the district and permits to conduct business in Washington, DC. How Do I Form an LLC in DC?
In order to create an LLC in DC, you must submit Articles of Organization to the DCRA. You’ll need information about your company, like its name, address, and registered agent, to complete this, which can be done online or by mail. Articles of Organization must be filed in DC for a charge of $220. Does Obtaining an EIN Number Cost Anything?
Are Tax ID Numbers and EINs the Same Thing?
Yes, an EIN and a Tax Identification Number (TIN) are interchangeable terms. This number is used when filing tax returns, seeking for loans, and opening a business bank account because it serves as your company’s tax identification number.