A sellers permit in Washington costs $60. Sales tax in Washington state is 6.5 percent. There may be additional local and special district taxes from 0 to 3.9 percent. Sales tax applies to selling physical goods and certain services. As a business selling taxable items, you must collect sales tax from customers for the state.
Application and Issuance
To obtain a seller’s permit, apply electronically on the Department of Revenue website. It issues retail sales tax permits within 7-10 days unless more information is required. Washington participates in the streamlined sales and use tax agreement. Sales tax rates by location are on the Department of Revenue website. Determine if sales tax applies based on the customer’s location and product sold.
Requirements and Variations
A seller’s permit allows buying and selling wholesale or retail merchandise. Also called a resale certificate, reseller license or state ID, it proves a business can buy goods without paying sales tax for later resale. If using a DBA business name, file a Doing Business As certificate. Employers also need federal and state tax numbers.
Seller’s permit costs, requirements and regulations vary by state and locality. Others require various fees and security deposits. The application process also varies. It can range from $100 to over $500 depending on your state and business activities. Be sure to research the specific costs, forms and regulations for your area.
Compliance and Legal Operation
Understanding the complex costs and red tape is key. Whether starting up or expanding, educate yourself on the permit process. Then navigate it smoothly by following each step. Renew on time to stay compliant. Permits allow businesses to operate legally while collecting proper taxes.