Starting a business in Utah 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 Utah Sales and Use Tax License, also known as a sales tax permit or seller’s permit. This permit allows you to collect sales tax on taxable products and services from customers in Utah.
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 Utah?
A business must register for a sales tax permit in Utah if:- you meet physical or economic nexus within the state and
- you are selling taxable products or providing taxable services to customers in Utah
How to Register for a Seller’s Permit in Utah?
When applying for a Utah Sales Tax License, you can complete your sales tax registration using the online application process on the Utah State Tax Commission website.1. Where to Apply for a Seller’s Permit in Utah?
The first step to register for a sales tax permit online is to go to Utah Taxpayer Access Point (TAP) and click on “Apply for tax account(s)—TC-69” found in the Apply Online section. Under the question “Do you need to apply for a tax account OR reinstate an existing tax account?” click “Yes.” Next, when you get to the “Types of Registration” section, it’s important to select “Yes” under “Sales and Use Tax License.” This choice will guide you through a series of prompts that lead you through the registration process, where you will enter all the required information. Additionally, you will also be asked whether you have a physical presence in the state and if you want to voluntarily file monthly sales tax returns. Based on your estimated annual sales tax liability, you can select “No” for this question. If you anticipate your annual sales tax liability to be $50,000 or less, you can select “No” which will assign you an annual or quarterly frequency. After filling in your information, take a moment to review everything you’ve entered. Once you’re satisfied that all the information is correct and complete, you can proceed to submit your application.2. What Information Do You Need to Get a Seller’s Permit in Utah?
To successfully acquire a seller’s permit in Utah, 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 Utah:- 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 Utah (Nexus Start Date), Estimated Annual Sales Tax Liability in Utah, Tax Year End Date
- Completed TC-51, Utah Nexus Questionnaire (applicable for out-of-state sellers with no physical presence)
- NAICS Code
3. How Much are the Fees for Applying for and Renewing a Seller’s Permit in Utah?
Registering for a sales tax permit in Utah is free, and you won’t need to provide payment details to acquire your permit. Utah 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 Utah?
- 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 must fill out Form TC-69, attach the necessary documents, and mail it to the address provided in the form.
- OneStop Business Registration: Through this, businesses can register for a Utah State Tax Commission account, register businesses with the state’s Department of Commerce, get city-specific licenses, etc.