How to Register for a Sales Tax Permit in Rhode Island
You can register for a sales tax permit online or by mailing the “Business Application and Registration Form” with the $10 fee to the Division of Taxation. This permit allows you to collect and remit sales tax.
Understanding Seller’s Permit and Business License
Seller’s permit and business licenses are two very different things. A business license allows you to operate in any location, and a seller’s permit identifies you as a collector of sales tax.
Selling Online Business Licensing Requirements
Whether you’re offering handcrafted items, digital goods, or various services, you may be required to obtain permits and licenses from federal, state, and local governing bodies.
Applying for a Seller’s Permit in Rhode Island
If selling goods in Rhode Island, you need a seller’s permit. This furnishes your business with a sales tax ID number to collect and remit sales tax. Failing to do so may lead to fines or charges.
Sales Tax on Remote Sellers in Rhode Island
You can register for a sales tax permit online or by mailing the “Business Application and Registration Form” with the $10 fee to the Division of Taxation. The thresholds for a sales tax permit are $100,000 in sales or 200 transactions. Selling food or alcohol requires additional permits.
Starting a Business in Rhode Island
To start the business permit process, first choose your structure – sole proprietor, LLC/corporation, or partnership. Then, name your business with an original, available name. Next, register your business and apply for permits. Applying online is the fastest method.
Basic Business Operations in Rhode Island
Check with local zoning that your e-commerce business is allowed. You can legally operate some online businesses from home. The state of Rhode Island owns any sales tax. The Rhode Island Division of Taxation is in charge of the sales tax.