Most business owners in Connecticut need to register for a sales tax permit. Here’s the information you need.
What is a sales tax permit?
A sales tax permit (sometimes called a “seller’s permit” or “sales tax license”) is a license that allows a business owner to make sales in a certain state or jurisdiction. The Connecticut sales tax permit allows the Department of Revenue to collect sales tax from Connecticut businesses.
Learn more about Obtaining a Seller’s Permit.
Do I need a sales tax permit in Connecticut?
According to the Connecticut Department of Revenue Services, you must obtain a sales tax permit (called a Sale and Use Tax Permit in Connecticut) before doing the following in Connecticut:
- Selling, renting, or leasing goods
- Selling a taxable service
- Operating a hotel, motel, or lodging service
You do not need a sales tax permit if you make an isolated sale—for example, if you sell your bike to a guy on Craigslist. The Department of Revenue also states that if you purchase a business from someone else, you must obtain a new sales tax permit, rather than using the previous owner’s permit.
How do I get a sales tax permit in CT?
Connecticut requires business owners to apply for a sales tax permit online, using the myconneCT online portal. There is a $100 fee, which you must make pay directly from a checking or savings account. Credit cards are not accepted. Here’s what you will need to register:
- The Federal Employer Identification Number (FEIN) of the business or social security number (SSN) of the sole proprietor.
- The legal business name or sole proprietor’s name.
- Your DBA, if you have one.
- The names and SSNs of responsible owners/officers.
- Banking information (to pay the $100 fee).
Sales tax permits in Connecticut need to be renewed every two years, which you will also need to do online.
What happens if I don’t get a CT sales tax permit?
According to the CT Department of Revenue Services, “Failure to obtain a tax permit will result in a fine of not more than $500 or imprisonment of not more than three months, or both, for each offense.” Sheesh, that’s harsh. Better to cough up the $100 fee now and not risk serving jail time.
Find out more about How to Start a Business in Connecticut.