Sales tax is that "fun" tax that everyone has to pay to the state on all goods sold within that state. Vendors, store owners and operators, and even businesses that sell only one product all have to register with the state for a sales tax permit. There are some very valid reasons why, and if you need help with this process before opening your own establishment, there are sales tax registration services that can help.
Because It Is Required by Law
Buyers have to pay you the required sales tax. You may receive the sales tax from them, but then you have to send a check to the state for the collected sales tax each week or each month. If you do not send the sales tax money in as required by law, you are considered to be evading your tax responsibility, defrauding the government, and/or stealing government property. Since you cannot collect sales tax without the sales tax permit and registration, you will need to register before opening your doors to the public and making your first sale.
Because It Establishes Your Business as Legit
A business that is registered with the state for a state tax permit is considered a legitimate business. Consider this fact in regard to the opposing fact that a business that does not pay sales tax is not legit, and may be under surveillance by government organizations and regarded as a possible crime syndicate or front operation. When you want your business and its sales to be considered truly legitimate, you register with the state according to state laws, and that includes the sales tax registration.
Because Customers Already Expect to Pay It
From a very young age, people learn that they have to pay taxes on everything they buy, from a cheeseburger to a car or house. Your customers will expect to pay the sales tax and may be slightly taken aback when they do not. Other customers may be thrilled that you are not charging them sales tax, but even they would know that something is not right when they are not paying what is expected. Keep those awkward moments at the register at bay and collect the sales tax as you should.
Because It Does Not Take Much to Register
Considering all that the permit does going forward, it does not take much to register. Most states have an online application with applicable service fees. If you get stuck, ask a registration service for help.
