Starting a business in Ohio 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 seller’s permit in Ohio, also known as a vendor’s license or seller’s use tax license. This permit allows you to collect sales tax on taxable products and services from customers in Ohio and remit it to the state.
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 Ohio?
A business must register for a sales tax permit in Ohio if:- you meet physical or economic nexus within the state and
- you are selling taxable products or providing taxable services to customers in Ohio
How to Register for a Seller’s Permit in Ohio?
When applying for a Seller’s Permit in Ohio, you can use the online application process on the Ohio Department of Taxation website to complete your sales tax registration.1. Where can you Apply for a Seller’s Permit in Ohio?
The first step is to register your business at the Ohio Business Gateway. You will create an online login account with the Ohio Business Gateway during your registration process. Once that is created, you will then apply for a seller’s use tax license if you’re a remote or out-of-state seller. If you are a business with a physical presence in Ohio, you will apply for a vendor’s license.2. What Information do you Need to Get a Seller’s Permit in Ohio?
To successfully acquire a seller’s permit in Ohio, 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 Ohio:- 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 state of Ohio (nexus start date), Estimated Monthly Sales Tax Liability in Ohio, Month of Fiscal Year End, Accounting Method (Cash vs. Accrual)
- NAICS Code
3. How Much are the Fees for Applying for and Renewing a Seller’s Permit in Ohio?
The registration fee for a sales tax permit in Ohio is $25 for in-state applicants. However, this fee is waived for out-of-state applicants, allowing them to register for free. The state charges a non-refundable registration fee. Ohio sales tax permits do 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 Ohio?
- 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.
- Paper Application: You will need to fill out form Form ST-1 for in-state sellers or Form UT-1000 for out-of-state sellers, attach the necessary documents, and mail it to the address provided on the form.