How to Register for a Sales Tax Permit in Indiana

Whether you have spent years of your career as an employee working for someone else or you are a young and eager individual with bright ideas and a goal to forge your entrepreneurial path on your own terms, you have to comply with some rules when it comes to setting up and running a business in the state of Indiana, as well as registering for a sales tax permit.

No matter what the focus of your business, there are regulatory obligations that are pretty much the same for everyone, you have to register your business, file for all the necessary permits and maybe even secure funding for your startup.

This short guide will take you through the essential steps needed to properly set up your business in Indiana.

Setting Up Your Business

There are legal requirements you have to fulfill in the state of Indiana to make sure you don’t run into any issues with the authorities. First, you have to decide on what legal form your business will take. Indiana’s Secretary of State lists two informal and six formal associations from Sole Proprietorship to Limited Liability Partnership. While choosing the legal form of your business, you should also choose the name of your business and check for the availability of the name with the Secretary of State before registering. The state of Indiana also has a dedicated Small Business Development Center that provides advice to small business owners and helps you secure funding.

Once the business registration is complete, your next step is to file for an EIN (employer identification number) from the IRS, which will also mean that your business will be registered on the Federal level.

Filing for a Tax Permit

There are certain other statutory requirements you need to follow after the registration, such as annual Business Entity Reports. You will also have to file taxes. This is an area you should look into more closely, and it is best to visit your local Secretary of State’s office for detailed information.

To file for a sales tax permit, visit Indiana Department of Revenue’s Tax Centre. Once your application is filed, the Indiana Department of Revenue will contact you within 48 hours to inform you of the application status. The sales tax permit is renewed automatically every two years.

In connection with understanding and filing taxes properly, there are specific permits related to some businesses. Every business needs some sort of permit to operate and a number of permits are issued on a city/county level, depending on your business location. It is best to check with your municipality for any local permits you might need. Some municipalities might need additional location permits.

When it comes to businesses that include purchasing and selling tangible goods, retail or wholesale, and in order to run a store, whether an online or a classic brick-and-mortar store, Indiana’s Department of Revenue requires you to obtain a Registered Retail Merchant Certificate. Under the regulations, you have to file a business tax application that has a $25 registration fee.

The information you need to register for a sales tax permit in Indiana includes your monthly taxable sales. Leaving this information blank requires you to file monthly taxes. You will also have to declare whether you are a seasonal business, provide lodging for less than 30 days, or will sell food or drink.

You must also include all business locations if you are filing tax reports on a consolidated basis. Lastly, specify if you wish your sales tax returns sent to a different address.

Obtaining an Indiana General Sales Tax Exemption Certificate

As in many other states, Indiana provides a way to avoid paying sales taxes when purchasing products for resale, which comes in handy to retailers and wholesale purchasers who intend to sell the goods purchased. This is done by presenting a valid Indiana General Sales Tax Exemption certificate to the seller. A printable version of the certificate can be found and downloaded here.

Following the registration of your sales tax permit and once you have acquired your registered retail merchant certificate, you can print out the Indiana General Sales Tax Exemption certificate and always make sure to note that the purchase you are making is for resale when filling it out.

If you are selling a product and the buyer provides you with a general sales tax exemption certificate, make sure you review all the information filed within. The certificate must be signed in order to be valid as well as contain the tax-exempt number of the buyer. You can further check the validity of the certificate by contacting the Department of Revenue. Additional contact details can be found at the end this guide.

The State of Indiana can Help Fund Your Business

There is another advantage for business owners in Indiana. The state of Indiana provides funding for a number of businesses. Visit Indiana’s Small Business Development Center for more details on possible loans and government grants that could help you get your business off the ground. This is helpful to those who are short on funding but would like to run a larger operation.

Who to Contact

For those needing more details on how to run and maintain a new small business, Indiana’s Department of Revenue has set up a New and Small Business Education Center that aims to help your business succeed.

While this guide provides you with tips on how to set up your business in the state of Indiana, you can also read this guide provided by the Indiana government. However, we urge you to ask for detailed instructions either from the state authorities or your local municipality. Indiana’s cities and counties have jurisdiction over many areas, which can have an effect on small businesses. Zoning issues and signage issues are almost always dealt with on a local level, so make sure you check for details locally.

To help you find your way here is the list of Indiana Department of Revenue’s District Offices:

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Henley Johnson

Henley currently works as a sales representative for Direct Liquidation, assisting businesses with product sourcing of liquidated merchandise from the largest retailers in the world. Whether you are looking for a pallet or a truckload Henley is here to help you grow your business.

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