Starting a business in Indiana 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 Indiana, also known as a Retail Merchant Certificate or sales tax permit. This permit allows you to collect sales tax on taxable products and services from customers in Indiana 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 Indiana?
A business must register for a sales tax permit in Indiana if:- you meet physical or economic nexus within the state and
- you are selling taxable products or providing taxable services to customers in Indiana
How to Register for a Seller’s Permit in Indiana?
When applying for a seller’s permit in Indiana, you can use the online application process on the Indiana Department of Revenue website to complete your sales tax registration.1. Where to Apply for a Seller’s Permit in Indiana?
The first step to register for a sales permit online is to go to the Indiana Business Roadmap (INBiz) website and click the title “Register Now.” This will take you to a screen where you will be asked to input your email. Since it’s your first registration, you must click “Don’t have an Access Indiana account?” After that, input your email and click “Send verification code.” After receiving the verification code, proceed to setting up your password. Take note that as an out-of-state seller, you’re registering for a Retail Merchant Certificate. In-state sellers or domestic businesses, on the other hand, should register for a sales tax. Once your INBiz logon is created, you can start registering for your seller’s permit.2. What Information do you Need to Get a Seller’s Permit in Indiana?
To successfully acquire a seller’s permit in Indiana, 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 Indiana:- 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, Telephone number, and SSN of owners, partners, or officers
- Business Activity Details: Date & State of Incorporation, start date with the state of Indiana (nexus start date), Estimated Monthly Taxable Sales in Indiana, Month of Fiscal Year End
- NAICS Code
3. How Much are the Fees for Applying for and Renewing a Seller’s Permit in Indiana?
Registering for a sales tax permit in Indiana costs $25. The state charges a non-refundable registration fee. Indiana sales tax permit needs to be renewed every two years, with no additional charge for renewal. But if the business fails to pay its tax liabilities, their permit will expire.4. What are Other Ways to Register for a Seller’s Permit in Indiana?
- 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 the form Form BT-1, attach the necessary documents and payment, and mail it to the address provided on the form.