Sales Tax Permit Registration by State
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The order matters more than the speed
Once you cross an economic nexus threshold, the state expects you to register, collect, and start filing. The hard part is not "how do I get a permit" — most state portals will let you finish in 30 minutes. The hard part is doing it in the right order, in the right states, without missing the local pieces that turn a clean filing into a $400 penalty letter six months later.
This guide is the practical sequence you actually want: which states tax sales, which let you register through one form, which charge a fee, and which add a layer of local complexity most online guides skip.
Five states do not charge sales tax
If your only nexus is in one of these states, you have nothing to register for at the state level. Remember the acronym NOMAD:
That leaves 45 states plus the District of Columbia where state-level sales tax applies. Of those, you have a choice of how to register: through a unified system that covers many states at once, or one state at a time.
SST states vs. non-SST states
The Streamlined Sales Tax (SST) Governing Board operates a single online registration form at sstregister.org that registers you in any combination of 24 participating states (23 full members plus Tennessee as an associate member). One form, one set of business details, multiple permits issued.
SSTRS is useful when you have nexus in multiple SST states at once — common for ecommerce sellers using Amazon FBA who hit several thresholds in the same month. It does not save you any filing work; you still file a return in every state where you are registered, even with $0 in sales for the period. What it saves is registration time and the headache of managing 10 different state portal logins on day one.
The top 10 states for ecommerce sellers
If you sell on Shopify or Amazon and ship nationwide, these are the states most sellers register in first — usually in this order, based on sales volume.
The local tax complication
This is where most multi-state sellers get tripped up. In about 22 states, sales tax has both a state piece and a local piece (county, city, parish, or special district). In most of those states, you register once with the state and the state handles the local piece automatically — you just charge the combined destination rate and the state distributes it.
But in three states, the local layer is run separately, and registering with the state alone is not enough.
Louisiana: 64 parishes administer local sales tax separately from the state. The Louisiana Sales and Use Tax Commission for Remote Sellers (LSUTCRS) was created to consolidate this for remote sellers — you register and file once through the Commission's portal. In-state sellers still deal with parishes individually.
Alabama: Many cities and counties self-administer. Alabama's Simplified Sellers Use Tax (SSUT) program lets remote sellers register once with the state and remit a flat 8% in lieu of dealing with locals — but only if you qualify as a remote seller and elect into the program.
If you sell on Shopify and ship to Denver, you must register with both Colorado SUTS (state) and the City and County of Denver (local). Missing the local piece does not show up immediately, but it shows up in an audit, and the back tax plus penalties can run several thousand dollars on relatively modest sales volume.
Worked example — David registers in four states
David runs a Shopify store selling outdoor gear. He has been in business for 18 months. After reviewing his nexus footprint with his bookkeeper, he confirmed economic nexus in California, Texas, Pennsylvania, and Colorado as of his last quarter. Here is the order he runs:
Step 2 — Texas (Comptroller): 20-minute online application. Free. Quarterly filing assigned.
Step 3 — Pennsylvania (myPATH): 25-minute application. Free. Quarterly filing.
Step 4 — Colorado (SUTS): 20 minutes for state. Free. Then separately registers with Denver, Boulder, and Aurora directly through each city's portal — about 30 minutes per city.
Total time: ~3.5 hours.
Total cost: $0.
Total returns to file going forward: 4 state returns + 3 Colorado home-rule city returns = 7 returns per filing period.
The lesson: registration is fast and free. The real cost is the recurring filing burden — and Colorado alone added three extra monthly or quarterly returns to David's compliance calendar. Before adding a new state, factor in the time or software cost of those filings, not just the registration.
After registration: what filing actually looks like
Each state assigns a filing frequency when you register, based on projected or actual sales volume. Frequencies fall into three buckets:
- Monthly: typical for sellers above ~$50,000–$100,000 in annual taxable sales in that state. Returns due ~20th of the following month.
- Quarterly: the default for most ecommerce sellers below the monthly threshold. Returns due 20th–30th of the month following quarter end.
- Annual: available in some states for very low-volume sellers. Always optional, never required.
Two rules apply in every state, no exceptions:
Common mistakes
- Registering before crossing nexus. Voluntary registration creates filing obligations from the registration date forward — even if you have no sales. Do not register "just in case."
- Missing the local layer in CO, LA, and AL. State registration is not enough in these three. Each requires either home-rule city registration (CO), parish/commission registration (LA), or election into the SSUT program (AL).
- Treating Amazon FBA states as automatic. Amazon collects and remits marketplace facilitator tax in all 45 states, but if you also sell off Amazon (Shopify, Walmart, your own site), you may still owe direct registration based on combined volume. Marketplace sales count toward economic nexus thresholds in many states.
- Picking the wrong start date. Most states want the registration effective date to match the date you first met nexus. Backdating triggers a "register and pay back tax" conversation; future-dating is not allowed.
- Ignoring the $0 return rule. If you registered in a state where you no longer have nexus, you must either keep filing $0 returns or formally close the account. Stopping without closing creates a non-filer cascade.
Frequently asked questions
In most states, Amazon collects and remits sales tax on your behalf as a marketplace facilitator, so you do not need to register or file based on those Amazon sales alone. However, FBA inventory creates physical nexus in many warehouse states, which can trigger registration obligations regardless of who collects the tax — particularly for income tax, franchise tax, or business licensing purposes. And if you sell off Amazon at all (your own Shopify, eBay, Walmart, etc.), the calculation changes. A multi-state nexus review is the right starting point before deciding which states to register in.
In most states, registration is free. Washington charges a $50 business license application fee that bundles sales tax registration in. A few states may require a security deposit if you project very high taxable sales as a first-time filer with no payment history, but this is rare for online sellers and is usually waived. Budget $0 for most states; allow up to $100 in fringe cases.
Colorado (because of home-rule cities), Louisiana (because of parishes — though the Remote Sellers Commission helps), and Washington (because the application is bundled into a broader business license that also pulls you into B&O tax). California is not technically hard, but the ongoing filing rules are the strictest in the country. Alabama is straightforward if you elect SSUT, complex if you do not.
Yes. Every state has a procedure to formally close a sales tax account, sometimes called 'final return' or 'close account.' You file one last return marking it as final, and the state stops expecting periodic filings. If you simply stop filing without closing, the state will issue non-filer penalties for every missed period until you respond. Always close formally.
In most states with local sales tax, the state administers it for you — including New York (where NYC's local rate is bundled with the state return) and Illinois (where Chicago is bundled, though Illinois has its own ROT/UT structure that takes some learning). The exceptions where local truly is separate are Colorado, Louisiana, and Alabama, plus a handful of borough-level Alaska localities. Outside those, registering once with the state covers the local rate.
If you have nexus in three or more SST member states at the same time, SSTRS saves real time. If you only have nexus in one or two SST states, registering directly with each state is just as fast and gives you a cleaner relationship with each state's portal from day one. SSTRS does not handle non-SST states (California, Texas, Florida, etc.) regardless, so you will end up using state portals anyway.
Immediately on the effective date listed on your permit, which is usually the date you submitted the application or the date you indicated you crossed nexus. New York is a notable exception — state law requires you to register at least 20 days before your first taxable sale. In practice, set up your Shopify or platform tax settings the same day your permit is issued so you do not under-collect on the first day.
This article provides general information about US tax topics and is not a substitute for personalized advice from a qualified tax professional. Tax law changes frequently — verify current rules with a tax professional before filing or making decisions based on this content.
