How do I find and set up a Sales Tax ID for my online store?

[Jervise]

Hello, It has been one year and I can't release online store because of not understanding how to set up taxes. Anyone knows where to find Sales tax ID and the process of completing Taxes and duties please ? I don't understand anything about it, thanks.

[Jervise]

Does anyone know how to get Sales tax ID please ?

[BreezyFile]

Hey Jervise,

The best way to get a sales tax ID is to find the equivalent of your state's Department of Revenue.  For example, Michigan's site would be Michigan Treasury Online.  On your state's websites, you can register your business and get a sales tax license.

Once you do that, you are legally allowed to collect tax and the state will let you know how often you need to file.

As to which states you need a sales tax ID, it will be states in which you have nexus (essentially a business presence).  There are two forms of nexus, physical nexus and economic nexus.  Physical nexus is triggered if you have a physical presence in the state i.e. a warehouse, employee, storefront, etc..  Economic nexus would be triggered if you cross certain sales thresholds which are determined by each individual state.  Usually these thresholds are about $100k/$200k in revenue over a 12 month period, or 100/200 individual transactions.

I hope that helps! If you let me know in which state you have nexus, I could probably help point you in the right direction.