Getting a sales tax number, also known as a sales and use tax permit, is one of the first steps you must take when opening a business in Tennessee. With the help of this number, you can gather and send sales tax on taxable items and services bought and sold within the state. Here is a step-by-step tutorial on how to obtain a Tennessee sales tax ID.
Determine Your Business Structure in Step 1
You must choose your business structure before you can apply for a sales tax number. Your Social Security number can be used as your tax ID if you run a sole proprietorship. You must receive an Employer Identification Number (EIN) from the IRS if you’re starting a partnership, LLC, corporation, or another type of company.
Step 2: Declare Your Company
After that, you must file a business registration with the Tennessee Secretary of State. This entails submitting the proper documentation and paying the associated fees. The Secretary of State’s office will send you a confirmation letter once your business has been registered.
Step 3: Request a Sales Tax Number
Once your company has been registered, you may request a sales tax number online through the Tennessee Department of Revenue. You must supply details about your company, such as your EIN or Social Security number, the kind of business you run, and an estimate of your annual revenues.
File sales tax returns in Step 4 You must start collecting and remitting sales tax on taxable products and services sold within Tennessee once you’ve received your sales tax identification number. Depending on your sales volume, payments are due either monthly or quarterly, and sales tax reports can be filed online or by mail.
How Do I File Sales Tax in Tennessee in relation to this? You have two options for submitting sales tax returns in Tennessee: online or by mail. If you decide to file electronically, you must first register for an account on the website of the Tennessee Department of Revenue before submitting your return and payment. You can download the necessary form from the Department of Revenue’s website and mail it in along with your payment if you’d rather file by mail.
You May Also Request How Much a Tennessee Sales Tax Permit Costs. Tennessee doesn’t charge anything to get a sales tax permit. However, you must register with the Secretary of State and pay any applicable fees if you are running a business in the state.
Are an EIN and a Tax ID the Same Thing? Yes, businesses utilize an EIN (Employer Identification Number) as a tax ID to identify themselves for tax purposes. All other business entities must apply for an EIN from the IRS, with the exception of sole proprietors who can use their Social Security number as their tax ID.
In Tennessee, do I require a business license? To run a business in Tennessee, you will typically require a business license. Depending on the kind of business you run and the city or county where you are located, there are different criteria. To learn what licenses and permissions are necessary for your business, get in touch with the county clerk’s office or the municipal hall in your area.