Starting a business in Minnesota 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 Sales Tax Permit in Minnesota, also known as a seller’s permit. This permit allows you to collect sales tax on taxable products and services from customers in Minnesota.
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 Minnesota?
A business must register for a sales tax permit in Minnesota:- you meet physical or economic nexus within the state and
- you are selling taxable products or providing taxable services to customers in Minnesota
How to Register for a Seller’s Permit in Minnesota?
When applying for a seller’s permit in Minnesota, you can complete your sales tax registration using the online application process on the Minnesota Department of Revenue (MNDOR) website.1. Where to Apply for a Seller’s Permit in Minnesota?
The first step to register for a sales tax permit online is to go to MN E-Services and click “Create a username” in the log-in section. Then, click “Get a Minnesota ID Number” in the Businesses section. You will then follow through the prompts that walk you through your registration process and provide the necessary information. Make sure you specify the type of tax you’re applying for. Since you’re an out-of-state/remote seller with no physical presence, tick the box for “Sales and Use.” Once you reach the “Remote Seller” section, make sure to select “Yes” to signify you are applying as a remote seller. In addition, remember to add all the special local taxes and other taxes you would need to report. You can specify this by selecting the box for all those that apply. During your registration process, you will create an online login account with the state. Once your logon is created, you can manage your current sales tax account(s) and register for additional accounts related to your business.2. What Information Do You Need to Get a Seller’s Permit in Minnesota?
To successfully acquire a seller’s permit in Minnesota, 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 Minnesota:- 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 Minnesota (Nexus Start Date), Estimated Monthly Tax Liability with Minnesota, Month of Fiscal Year End/Tax Year, Accounting Method (Cash or Accrual)
- NAICS Code
3. How Much are the Fees for Applying for and Renewing a Seller’s Permit in Minnesota?
Registering for a sales tax permit in Minnesota is free, and you won’t need to provide payment details to acquire your permit. Minnesota 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. If you change your business name, location, or any identifying details, you must alert the Minnesota Department of Revenue through their e-Services system.4. What are Other Ways to Register for a Seller’s Permit in Minnesota?
- 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.
- Phone Application: Call 651-282-5225 or the toll-free 1-800-657-3605.