Starting a business in Massachusetts is an exciting venture, but it’s crucial to understand the legal requirements that come with it. A common area of confusion for many new business owners is understanding the need for a Sales and Use Tax Permit in Massachusetts, also known as a seller’s permit. This permit allows you to collect sales tax on taxable products and services from customers in Massachusetts.
This blog will guide you through each step of applying for a sales tax permit, with clear instructions to help you and your business begin collecting sales tax effortlessly.
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Who Needs a Seller’s Permit in Massachusetts?
A business must register for a sales tax permit in Massachusetts if:- you meet physical or economic nexus within the state and
- you are selling taxable products or providing taxable services to customers in Massachusetts
How to Register for a Seller’s Permit in Massachusetts?
When applying for a Sales and Use Tax in Massachusetts, you can use the online application process on the Massachusetts Department of Revenue website to complete your sales tax registration.1. Where to Apply for a Seller’s Permit in Massachusetts?
The first step to register for a sales tax permit online is to go to MassTaxConnect website and click on“Sign Up” found in the top right section of the screen underneath “New to MassConnect?” Another way you can register is to click on “Register a New Taxpayer” found in the Quick Links section. You will be redirected to another page, where you will click on “Register a New Business.” You will then follow the prompts that walk you through your registration process and provide the necessary information. Make sure to select the tax type you would like to register for. If you’re an out-of-state seller, select “Sales and Use Tax.” During your registration process, you will create an online login account with the State of Massachusetts. Once your logon is created, you can manage your current sales tax account(s) and register for additional accounts related to your business.2. What Information Do You Need to Get a Seller’s Permit in Massachusetts?
To successfully acquire a seller’s permit in Massachusetts, it’s important to prepare and provide specific information and documents. The following is a list of the necessary information and documents required to register a sales tax permit in Massachusetts:- Business Identification Information: Legal Business Name, Physical Address, Mailing Address
- Business Entity Structure (i.e., Sole Proprietorship, Partnership, Subchapter S Corp., Corporation, LLC, etc.)
- Federal Employer Identification Number (EIN or FEIN)
- Name, Address, and SSN of Owners, Partners, or Officers
- Business Activity Details: Date & State of Incorporation, Start Date with the Massachusetts (Nexus Start Date), Estimated Annual Sales Tax Liability
- NAICS Code
3. How Much are the Fees for Applying for and Renewing a Seller’s Permit in Massachusetts?
Registering for a sales tax permit in Massachusetts is free, and you won’t need to provide payment details to acquire your permit. Massachusetts sales tax permit does not need to be renewed and remain valid for as long as the business exists without any changes in ownership or structure.4. What are Other Ways to Register for a Seller’s Permit in Massachusetts?
- Use TaxHero. Registering for a seller’s permit, mainly when it involves multiple permits, can be a tedious and time-consuming task requiring much effort. Let the experts at TaxHero save you from this hassle, and let us handle the registration process in all states where you have nexus as part of our all-inclusive sales tax service.