What Is a Seller's Permit? If your business sells tangible property to the public either as a wholesaler or retailer, then in most states, you need to apply for a seller's permit. 'Tangible property' simply means physical items, like clothing, vehicles, toys, construction materials, and so on. In some states, a seller's permit is required for service-oriented business, too, such as accountants, lawyers, and therapists. The seller's permit allows you to collect sales tax from buyers. You'll then pay that sales tax to the state each quarter by putting the sales tax permit number on the state's tax payment form.
You can register for a seller's permit through your state's Board of Equalization, Sales Tax Commission, or Franchise Tax Board. To help you find the appropriate offices, find your state on this IRS website. What Is a Business License? Almost every business needs fax number list some form of license or permit to operate legally – but the requirements vary, which can get confusing. Which specific licenses or permits does your business need? To figure that out, go to this SBA.gov website and select the state from which you're operating your business. It'll tell you the specific license and permit requirements in that state. Understanding Small Business Tax Requirements Business owners are obligated to pay specific federal taxes, and the amount of those taxes is determined by the form of business entity that you establish.
All businesses except for partnerships need to file an annual income tax return. Partnerships file what's called an information return. Any business that's owned and operated in the United States needs an Employer Identification Number (EIN), which you can apply for on the IRS' website here. Once you're registered, it's time to figure out which taxes you'll be responsible for. Here are the three types: Self-Employment Tax (SE Tax) A Social Security and Medicare tax for people who work for themselves, i.e. business owners. SE taxes require filing Schedule SE (Form 1040) if your net earnings from self-employment were $400 or more.