What sales tax registration is and who needs it
Sales tax registration is an application to a state's tax agency for a permit (also called a license, certificate or seller's permit). The permit lets you collect sales tax from customers in that state and requires you to file returns and pay the tax you collected.
You need a permit in a state when your LLC has nexus there. Nexus can come from a physical presence, such as an office, staff or inventory in a warehouse, or from economic activity alone once your sales into the state pass its threshold. Forming an LLC in a state does not by itself mean you owe sales tax there, and owning an LLC does not mean you need permits in every state.
Whether a specific product or service is taxable, and whether your activity creates physical presence, are tax questions. For those, speak to a licensed tax professional. This service handles the registration once you know where you need to register.
Economic nexus after South Dakota v. Wayfair
Before 2018, states could only make a seller collect sales tax if it had a physical presence in the state. In South Dakota v. Wayfair, Inc. (decided 21 June 2018), the US Supreme Court overruled that physical presence rule. South Dakota's law applied to sellers delivering more than $100,000 of goods or services into the state or making 200 or more separate transactions a year.
Since then, states have set their own economic nexus thresholds for remote sellers. That is why a non-resident founder selling online from Pakistan, India or the UAE through a US LLC can owe sales tax registration in a state where it has no office at all.
Thresholds in common states
Thresholds differ in amount, in what sales count and in the period measured. These are the rules in four of the states where we form LLCs.
| State | Remote seller rule | Notes |
|---|---|---|
| Florida | Taxable remote sales over $100,000 in the previous calendar year (in force from 1 July 2021) | State rate 6% plus any county surtax |
| New Mexico | Taxable gross receipts of at least $100,000 in the prior calendar year | New Mexico charges gross receipts tax on the business, not a classic sales tax |
| Texas | No permit needed if total Texas revenue was under $500,000 in the preceding 12 calendar months | Counts taxable and non-taxable sales, sales for resale and sales to exempt buyers |
| Delaware | No state or local sales tax | Delaware charges a gross receipts tax on sellers instead |
In Texas, once you pass $500,000, you must get a permit and start collecting no later than the first day of the fourth month after the month you exceeded it. The Texas state rate is 6.25%, and local jurisdictions can add up to 2%.
A Delaware LLC selling into Florida or Texas follows Florida and Texas rules for those sales. The state you formed in and the states you sell into are separate questions.
Marketplace facilitator rules in brief
If you sell through a marketplace such as Amazon, Etsy or eBay, the marketplace is often required to collect and pay the tax on those sales for you. Florida requires marketplace providers to collect and remit tax on behalf of marketplace sellers. Texas says a seller whose marketplace provider collects the tax is not required to hold a Texas permit for those sales.
Sales on your own website, Shopify store or invoices are not covered by a marketplace, so they can still require your own permit. For the detail on how marketplace sales interact with thresholds, read our US sales tax guide for Amazon sellers.
Register before you collect
Get the permit first, then charge tax. Florida's registration guide says that in most cases you must register as a dealer before you begin business activities subject to its taxes. Charging customers "sales tax" without a permit means holding money that you have no account to pay over. If you cross a threshold and do not register, the state can still expect the tax on those sales, and you may end up paying it yourself because you never collected it from customers.
What is included
- A registration for one state per order, prepared from your intake answers
- Check of the state's current threshold, application form and questions
- Preparation and submission of the online application
- Payment of any state fee or deposit at cost, if one applies
- The permit number and certificate saved to your client portal once issued
- A note of the filing frequency the state assigns and your first return due date
What is not included
- Deciding whether your products are taxable or whether you have nexus (a tax professional's call)
- Filing sales tax returns or paying the tax after registration
- Marketplace tax settings, sales tax software set-up or back tax voluntary disclosures
Government fees
Most of the cost is time, not state fees. Texas says there is no fee for the permit, but you may be required to post a security bond. Florida may require a cash deposit, surety bond or letter of credit in specific cases, such as outstanding liabilities of $2,500 or more. Other states set their own fees. Any state fee is charged at cost and shown separately from our service fee.
How it works
- Order and intake. Start your order for each state and answer our short questionnaire about what you sell and where.
- Secure document upload. Upload your formation document and EIN letter through the portal (see our security page).
- Preparation and review. Our filing team prepares the application and sends you the answers to confirm.
- Submission. We submit the application on the state's system.
- Tracking. The status updates in your portal while the state reviews it.
- Delivery. Your permit number and certificate are saved to your portal.
- Reminders. We note your first return due date so you do not miss it.
What we need from you
- LLC formation document and state filing number
- EIN confirmation letter (see our EIN application service if you do not have one)
- Names, addresses and ID details of members or responsible officers
- Business address and a description of what you sell and how (own website, marketplace, both)
- Your sales into the state and the date you crossed the threshold
- Your US bank account details if the state asks for them
Timelines
Our team starts once the intake and documents are complete. After that, the timing is the state's. Texas asks you to allow 2 to 3 weeks to receive your permit. Florida says online applicants can retrieve their certificate number after three business days. Wyoming's excise tax division says its online process generally takes about two weeks.
After you register
A permit comes with a filing schedule. Texas, for example, assigns monthly, quarterly or yearly filers. Keep filing on that schedule for as long as the permit is open. If you stop selling into a state, close the permit rather than letting returns go unfiled. When you close the LLC itself, our LLC dissolution service covers closing state tax accounts too.
Doing it yourself vs using us
You can register directly on each state's revenue website for free or for the state fee, and many sellers do. Expect questions about business type, product codes, first sale date and responsible persons, written with US-based owners in mind.
Our service suits non-resident owners and sellers who need several states at once. We check the current rules, prepare each application, submit it, keep your permits in one portal and log your first return dates. We do not decide your tax position, and we point you to a tax professional where the answer depends on your facts.
Sources
- Supreme Court of the United States: South Dakota v. Wayfair, Inc. (2018)
- Florida Department of Revenue: TIP 21A01-03 remote sellers and marketplace providers
- Florida Department of Revenue: sales and use tax
- Florida Department of Revenue: Registering Your Business (DR-1N)
- New Mexico Taxation and Revenue Department: determining nexus
- New Mexico Taxation and Revenue Department: gross receipts overview
- Texas Comptroller: remote sellers
- Texas Comptroller: sales and use tax
- Texas Comptroller: sales tax permit FAQs
- Texas Comptroller: sales tax permit
- Delaware Division of Revenue: gross receipts taxes
- Wyoming Department of Revenue: excise tax FAQs
Fees, deadlines and rules on this page were last checked on 27 September 2026.