PART 2: IF A TAXPAYER MEETS THE SALES THRESHOLD IN A STATE, WHAT MUST WE DO NOW?
These frequently asked questions build on our prior series of FAQs.
Q: Once a taxpayer meets the sales threshold of a state, what must be done to be compliant with the state’s tax laws?
A: You must register for sales and use taxes with the state. Depending on the state and jurisdiction, you may need to register with the local jurisdiction or parish. Please note some states may require you to register with the state’s Secretary of State before obtaining a sales tax permit from the state.
Q: How often will I need to file sales and use tax returns?
A: It will depend on each state. The state will assign you a filing frequency based on certain criteria it has established. The frequency will be either monthly, quarterly or yearly.