When you’re obligated to collect sales tax in a state because of nexus, the first thing you’ll need to do is apply for a sales tax permit. These permits are issued by most states, but the rules for getting them, paying for them, and renewing them are all different.
For instance, some states charge sellers for a sales tax permit, while others offer them at no cost. For states that charge for the permits, most fees run between $5 and $100. (Here’s a state-by-state list of renewal fees.)
In addition to keeping up with the registration processes and fees, you’ll need to understand each state’s requirements for renewal. And as you’ve probably guessed by now, each state’s renewal policy is different.
Here’s an idea of what kinds of renewal policies you’ll find for sales tax permits.