In Louisiana, you must collect and remit sales tax on any goods and services you sell to residents of the state. You will want a Louisiana sales tax account number to achieve this. Here’s a step-by-step explanation on how to acquire one.
Find out if you require a sales tax account number in step one. In Louisiana, not every company is obligated to collect sales tax. You do not require a sales tax account number if you offer items or services that are exempt from sales tax. However, you must sign up for a sales tax account number if you offer taxable goods or services.
2. Compile the required information. You must submit the following details in order to register for a sales tax account number: – Business type (sole proprietorship, partnership, LLC, etc.) – Business name and address – Social Security number or federal employer identification number (FEIN) – The name and phone number of the contact person – An explanation of the products or services you offer – Monthly sales projections
3. Sign up by mail or online. Through the website of the Louisiana Department of Revenue, you can apply online for a sales tax account number. An alternative is to print out Form R-16019, fill it out, and mail it to the Louisiana Department of Revenue.
Sales Tax Calculation
Knowing how to compute sales tax may be on your mind now that you have a sales tax account number. Sales tax is calculated using the following formula: Sales tax = Total cost of goods or services x Sales tax rate.
In Louisiana, the parish (county) determines the sales tax rate, which can range from 4.45% to 11.45%. On the website of the Louisiana Department of Revenue, you may learn the sales tax rate for your parish. Understanding Sales Tax
For instance, the sales tax would be $9 if you were purchasing a $100 item in a parish with a 9% sales tax rate.
submitting Form 540
Louisiana’s sales tax is unrelated to Form 540. However, you can mail Form IT-540 to the Louisiana Department of Revenue if you are submitting a Louisiana individual income tax return. The mailing address for the form can be found there.