A Sales and Use Tax Permit is required for any Texas Seller Permit business that intends to lease or sell tangible goods or personal property. This applies to all business types: individuals, LLCs and corporations, as well as partnerships and businesses whose corporate office is located outside of Texas.
Do I require a Texas Seller’s Permit
The Texas Comptroller’s website explains who must obtain a Texas seller’s permit. The state of Texas first examines whether you are “engaged in business” to determine this the state looks if your business:
- Keeps a physical location of business within the state, such as a warehouse or distribution center, sales area, etc.
- A sales representative or agent that operates in the state, or independent salespeople who are involved in direct sales for taxable items.
- Rent or lease income is earned from a property within the state
- Promote any event that involves the sale of taxable items
- Other than that, conducts business in the State through others
Although the list above is not exhaustive, it does cover the most important factors. Items such as furniture, toys, art, and other personal property are all subject to tax. Texas requires sellers permits for anyone who provides taxable services such as insurance or data processing.
Do I need anything other than a sellers license?
To sell taxable goods, sellers must have a Texas seller’s license. Also known as a sales tax permit. If you are sole proprietor and use a different business name than your legal name, you will need to register for an assumed name. It is also known as a DBA name (Doing Business As), and serves to establish a business name for you. You will need to register first for your DBA name because your seller’s permit must include your business name.
Most states require sellers permits. These permit the collection of sales taxes within their jurisdiction.
This license is known as a “sales tax permit” in Texas. It must be obtained by any person or entity selling or leasing tangible personal property within Texas.
Texas Seller’s Permit – Assumed Name Certificate
Visit the website of the Texas county in which your business is located. Assumed name certificates will be processed by the local county clerk. You can find information on assumed name applications at the county’s website. This will allow you to see if they accept online or in-person applications. To obtain a Texas seller permit, all Texas counties allow you to bring in a paper application to apply for an assumed name certificate. Some counties, like Dallas County, allow applicants to submit the application online. These applications can be processed faster and do not require a visit to the county office.
Please complete the application by entering your legal name, Social Security Number (SSN), and address. It is also necessary to indicate the name under which you want to do business. When you are asked to describe your business structure, you can choose “proprietor” (or “sole proprietorship”) as the option. Pay the application fee. These fees will vary from one county to the next, but they are not excessive.
Complete a Texas Tax Registration Application
The application for a Texas sales tax permit, AP-201 is the Texas tax registration form. Although you can complete a paper application the Texas Comptroller recommends that applicants file online. You must register online for a tax registration account if you want to file online. You must provide information about your business including your legal name, address, Social Security number, DBA name, business address, and the county in which your business is located.
Next, enter your North American Industry Classification System code (NAICS). These codes are used to describe the nature and purpose of your business. You can submit your application online, or in person. Click the “Submit” button to submit your application online. You will need to pay the application fee. Send the completed application via mail to Comptroller for Public Accounts, 111 E. 17th St. Austin TX 78774-0100