How to Get Louisiana Sales Tax Permit | A Comprehensive Guide

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Louisiana Sales Tax Permit

Have you ever wondered what a sales tax permit is in Louisiana? If you don’t, then we will guide you through it. In Louisiana, a sales tax permit, also known as a seller’s permit, is a legal document that allows businesses, specifically Louisiana LLC, to collect and remit sales tax to the Louisiana government. This permit ensures businesses operate legally and have the necessary permissions to conduct sales within a particular state. Louisiana has its own rules and regulations surrounding sales tax permits. Business owners must familiarize themselves with the requirements and processes to comply with the law.

In this comprehensive guide, Webinarcare Editorial Team will walk you through everything you need to know about obtaining and maintaining Louisiana Sales Tax Permit. From understanding the basics of sales tax to the intricacies of the application process, we have got you covered. You must be guided by all the factors gathered in this article.

How to Get Sales Tax Permit in Louisiana

What is a Sales Tax Permit?

A sales tax permit is Louisiana-issued license that allows businesses to collect and remit sales tax on the goods and services they sell. This permit ensures Louisiana businesses operate legally and have the necessary permissions to conduct sales within a particular state. In Louisiana, a sales tax permit is required for businesses that sell taxable goods or services and are required to collect sales tax from their customers.

Who Needs a Sales Tax Permit?

Not all businesses need a sales tax permit. Typically, businesses that sell tangible personal property or taxable services to customers within Louisiana require a sales tax permit. This includes brick-and-mortar stores, online retailers, and service providers. Louisiana may also require sales tax permits for businesses that sell certain types of products or services, such as alcohol or tobacco. If you plan to start a bakery business in Louisiana, you typically need a sales tax permit to collect and remit sales tax on the items you sell.

If your business operates in multiple states or forms a foreign LLC in Louisiana, you may need to obtain a sales tax permit for each state with a sales tax nexus. A sales tax nexus is a connection or presence a business has within a state that requires them to collect and remit sales tax. Factors that can create a nexus include the following:

  • Physical location
  • Employees
  • Inventory within a state

Obtaining a sales tax permit in Louisiana is not just about complying with regulations, but about seizing the opportunity to grow and thrive in the market. To start an LLC must be a gateway to establish a legitimate business presence and to build trust with customers. Embrace this essential step, for it paves the path towards success and prosperity.

– WEBINARCARE EDITORIAL TEAM

How to Get a Sales Tax Permit in Louisiana

The process for obtaining a sales tax permit varies from state to state. Generally, Louisiana businesses must apply through the Louisiana Department of Revenue. The following steps provide an overview of the application process:

Step 1: Determine If You Need a Sales Tax Permit 

Before applying, determine if your Louisiana business needs a sales tax permit based on the goods or services you sell and where you operate.

Most Louisiana businesses that sell tangible goods or services must have a sales tax permit. This includes:

  • Retailers – businesses that sell goods directly to consumers, such as clothing stores, grocery stores, and electronics stores.
  • Service Providers – businesses that provide services, such as hair salons, auto repair shops, and landscaping companies.
  • Wholesalers – businesses that sell goods to other businesses, such as distributors and manufacturers.
  • Online Sellers – businesses that sell goods or services online, including Louisiana E-commerce and online marketplaces.

Step 2: Register Your Louisiana Business

Register your business in Louisiana if you still need to. This may involve obtaining an Employer Identification Number (EIN) in Louisiana from the Internal Revenue Service and registering your business name with the Louisiana Secretary of State. 

Your Louisiana business name should be unique, memorable, and reflective of your products or services. There is a complete guide on Louisiana Business Name Search for a proper Louisiana business name. You can also check the availability of your desired business name by searching the Louisiana Secretary of State Corporations Search‘s website.

In obtaining an EIN, it can be done through the following:

  • Apply Online- The online EIN application is the preferred method for customers to apply for and obtain an EIN.
  • Apply by Fax- Taxpayers can fax the completed Form SS-4 application to the appropriate fax number), after ensuring that the Form SS-4 contains all of the required information.
  • Apply by Mail- The EIN application Form SS-4 can be filed via mail. The processing time frame to receive the mail is four weeks.
  • Apply by Telephone-International Applicants – International applicants may call 267-941-1099 (not a toll-free number) from 6 a.m. to 11 p.m. (Eastern Time) Monday through Friday to obtain their EIN.

Complete the registration for a legal Louisiana business if you plan to sell tangible goods. 

Recommended: Professional services have the EIN included in their LLC formation package. We recommend using –

LegalZoom – ($0 + State Fee for LLC formation)

Step 3: Gather The Necessary Information

The next step is to collect the required information for the Louisiana sales tax permit application. To obtain a sales tax permit in Louisiana, you will need to gather the following necessary information:

  1. Business Details: Provide the legal name, mailing address, and contact information of your business, including your Louisiana DBA (Doing Business As) names.
  2. Entity Type: Indicate whether your business is a sole proprietorship, partnership, corporation, LLC, or legal entity.
  3. EIN/SSN: Have your Employer Identification Number (EIN) or Social Security Number (SSN) ready. This identification is required to associate the sales tax permit with your business.
  4. Purpose of Permit: Explain the nature of your business activities, such as retail sales, wholesale, manufacturing, or service, to determine the appropriate sales tax category.
  5. Product/Service Description: Provide a brief description of the goods or services your business offers, including any unique details that may impact the sales tax requirements.
  6. Nexus Information: Identify if your business has a physical presence or nexus in Louisiana, such as a brick-and-mortar location, employees, or inventory storage.
  7. Estimated Sales: Estimate your expected monthly or annual sales volume in Louisiana to determine the appropriate tax registration and reporting requirements.
  8. Previous Registration: If you are already registered for sales tax in another state, provide details to determine if any reciprocal agreements or exemptions apply.
  9. Supporting Documents: Some states may require additional documentation, such as a copy of your business license, federal tax returns, or a certificate of authority.
  10. Fee Payment: Be prepared to pay the required fee for obtaining a sales tax permit in Louisiana.

It’s important to note the exact requirements and processes in Louisiana. It is recommended to visit the official website of the Louisiana Department of Revenue or consult with a tax professional for accurate and up-to-date information.

Step 4: Complete The Application

Fill out the sales tax permit application form for Louisiana, either online or by paper. Be prepared to answer questions about your business operations, products, and services. You can register your Louisiana sales tax permit in GeauxBiz.

Step 5: Pay Any Required Fees

In Louisiana, the state permit may charge a fee for obtaining a sales tax permit. Be prepared to pay this fee when submitting your application. Usually, it costs $0 (Free). 

Step 6: Submit The Application

Submit your completed application, along with the required fee of $0 (Free), to the Louisiana Department of Revenue.

Step 7: Receive Your Permit

Once your application is approved, you will receive your sales tax permit. This may be a physical document or an electronic certificate you can print. 

How to Maintain a Sales Tax Permit

After obtaining a sales tax permit, Louisiana businesses must maintain compliance with Louisiana sales tax laws. This typically involves the following steps:

  • Collect Sales Tax: Collect sales tax from customers on taxable goods and services. Be sure to charge the correct sales tax rate based on your and your customer’s locations. The sales tax rate in Louisiana is 4.45%. 
  • Keep Accurate Records: Maintained detailed records of all sales transactions, including the amount of sales tax collected. This information will be required when filing your sales tax returns. Hire a certified public accountant (CPA) to keep track of records. 
  • File Sales Tax Returns: File sales tax returns with Louisiana, typically monthly, quarterly, or annually, depending on your sales volume and Louisiana requirements. Be sure to remit the sales tax collected during the reporting period.
  • Renew your Permit: Louisiana requires businesses to renew their sales tax permits periodically. Know your state’s renewal requirements and complete the necessary steps to maintain your permit.

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Penalties for Non-Compliance

Failure to obtain or maintain a sales tax permit can seriously affect a business. Penalties for non-compliance can include fines, penalties, interest charges, and even the revocation of your business license. Additionally, Louisiana businesses that fail to collect and remit the Louisiana sales tax may be held personally liable for the unpaid taxes.

Do I Need a Sales Tax Permit If I Only Sell Online?

You likely need a sales tax permit if you sell taxable goods or services online and have a sales tax nexus in Louisiana. To have a Home-Based Business in Louisiana, you must still file and maintain a sales tax permit. 

How Long Does Obtaining a Sales Tax Permit Take?

The processing time for sales tax permit applications takes time. In Louisiana, they may issue permits within a few days, while others may take several weeks. Be sure to apply well in advance of when you plan to start selling taxable goods or services.

Can I Have Multiple Sales Tax Permits?

Businesses that operate in multiple states or sell different types of products may need multiple sales tax permits. Be sure to research the specific requirements for each state and product type. Having a foreign LLC is not quite easy since you still need to hire a Resident Agent, file for the Articles of Organization of the state you wish to operate your business, and also, you need to have multiple sales tax permits. 

How Much Does a Sales Tax Permit Cost?

The costs and requirements for obtaining a sales tax permit vary depending on the state. To find accurate information about the cost of a sales tax permit in Louisiana, you can visit the Louisiana Department of Revenue’s website or consult with a tax professional or accountant familiar with your state’s regulations. They can provide the most up-to-date information on the costs and requirements for obtaining a sales tax permit in Louisiana.

FAQs

What is a sales tax permit in Louisiana?
A sales tax permit in Louisiana is a license that allows you to collect and remit sales tax in the state.
Who needs to get a sales tax permit in Louisiana?
Anyone who sells tangible personal property or taxable services in Louisiana is required to have a sales tax permit.
Do I need a sales tax permit if I am only selling online in Louisiana?
Yes, if you are selling to customers in Louisiana, you are required to have a sales tax permit.
How much does it cost to get a sales tax permit in Louisiana?
There is no fee for obtaining a sales tax permit in Louisiana.
How long does it take to get a sales tax permit in Louisiana?
It typically takes 7-10 business days to receive your sales tax permit in Louisiana once you have submitted your application.
Do I need to renew my sales tax permit in Louisiana?
Yes, you are required to renew your sales tax permit in Louisiana every 18 months.
Can I apply for a sales tax permit in Louisiana online?
Yes, you can apply for a sales tax permit online through the Louisiana Department of Revenue website.
What information do I need to provide when applying for a sales tax permit in Louisiana?
You will need to provide information about your business, including your business name, location, and type of business.
Do I need to have a Louisiana state ID or driver’s license to get a sales tax permit in Louisiana?
No, you do not need to have a Louisiana state ID or driver’s license to get a sales tax permit in Louisiana.
What happens if I don’t have a sales tax permit in Louisiana?
If you do not have a sales tax permit in Louisiana, you can be fined or penalized for not collecting sales tax.
If I have multiple businesses, do I need separate sales tax permits for each business in Louisiana?
Yes, you need to have separate sales tax permits for each business you own in Louisiana.
Can I use my sales tax permit in Louisiana to collect sales tax in other states as well?
No, your sales tax permit is only valid for collecting sales tax in Louisiana.
How often do I need to file my sales tax returns in Louisiana?
You are required to file your sales tax returns in Louisiana on a monthly, quarterly, or annual basis, depending on your business needs.
Is there a penalty for filing my sales tax returns late in Louisiana?
Yes, there is a penalty for filing your sales tax returns late in Louisiana.
What is the sales tax rate in Louisiana?
The sales tax rate in Louisiana is 4.45% at the state level, and additional local taxes may also apply.
How do I know if I need to collect local sales tax in addition to state sales tax in Louisiana?
You can check with your local jurisdiction to determine if you need to collect local sales tax in addition to state sales tax in Louisiana.
Can someone else apply for a sales tax permit for me in Louisiana?
No, you must personally apply for a sales tax permit in Louisiana.
Is there a requirement for how long I need to keep sales tax records in Louisiana?
You should keep your sales tax records in Louisiana for at least 3 years.
Can I apply for a sales tax permit retroactively in Louisiana?
No, you must apply for a sales tax permit before you begin selling tangible personal property or taxable services in Louisiana.
How do I cancel my sales tax permit in Louisiana if I close my business?
You can cancel your sales tax permit in Louisiana by submitting a request to the Louisiana Department of Revenue.
Can I use a reseller’s permit in place of a sales tax permit in Louisiana?
No, a reseller’s permit is not a substitute for a sales tax permit in Louisiana.
Can I use a sales tax permit from another state to collect sales tax in Louisiana?
No, you must have a sales tax permit specifically for Louisiana in order to collect sales tax in the state.
What is a ST-8 form in Louisiana, and when do I need to use it?
The ST-8 form in Louisiana is used for seller-to-seller transactions and can be used to exempt someone from paying sales tax in Louisiana under certain circumstances.
Can I apply for a temporary sales tax permit in Louisiana?
Yes, you can apply for a temporary sales tax permit in Louisiana for special events or sales activity.
Do I need to collect sales tax on services in Louisiana?
You may need to collect sales tax on certain services in Louisiana depending on the type of service and the location of your business.
How can I learn more about Louisiana sales tax laws and regulations?
You can visit the Louisiana Department of Revenue website or contact a tax professional for more information on Louisiana sales tax laws and regulations.
Can the Louisiana Department of Revenue audit me if I have a sales tax permit?
Yes, the Louisiana Department of Revenue can audit you even if you have a sales tax permit. It is important to keep accurate records of your sales and taxes to avoid any issues during an audit.
Can I apply for a sales tax permit in person in Louisiana?
No, you cannot apply for a sales tax permit in person in Louisiana. All applications must be submitted online or by mail.
Who needs a sales tax permit in Louisiana?
Anyone who sells taxable merchandise or provides taxable services in Louisiana needs a sales tax permit.
How do I apply for a Louisiana sales tax permit?
You can apply for a Louisiana sales tax permit online through the Louisiana Department of Revenue website, by mail, or in person at a local office.
What information do I need to provide on the Louisiana sales tax permit application?
You will need to provide information about your business, including your name, address, and type of business. You will also need to provide your federal tax ID number or Social Security number, if you are a sole proprietor.
How long does it take to obtain a Louisiana sales tax permit?
It can take up to two weeks for the Louisiana Department of Revenue to process your application and issue a sales tax permit.
Is there a fee to obtain a Louisiana sales tax permit?
There is no fee to obtain a Louisiana sales tax permit.
How often do I need to renew my Louisiana sales tax permit?
Louisiana sales tax permits are not renewed. Once you have a permit, you must continue to file sales tax returns and pay sales tax as required by law.
Can I sell in Louisiana without a sales tax permit?
No. If you sell taxable merchandise or provide taxable services in Louisiana, you must have a sales tax permit.
Do I need a separate sales tax permit for each location in Louisiana where I do business?
Yes. If you have multiple locations in Louisiana, you must obtain a sales tax permit for each location.
Can I use someone else’s Louisiana sales tax permit?
No. Each business must have its own sales tax permit based on its unique information.
Can I apply for a Louisiana sales tax permit if I have not started my business yet?
Yes. You can apply for a sales tax permit before you begin operating your business.
What happens if I operate a business in Louisiana without a sales tax permit?
You may be subject to penalties and fines for failing to obtain a sales tax permit. You may also be required to pay any back sales tax owed.
What types of businesses are exempt from having a Louisiana sales tax permit?
There are only a few types of businesses that are exempt from having a Louisiana sales tax permit, including nonprofit organizations and certain government entities.
What types of sales are exempt from Louisiana sales tax?
Some examples of sales that are exempt from Louisiana sales tax include sales to nonresidents, sales of prescription medication, and many sales to nonprofits.
How do I report and pay Louisiana sales tax?
You can report and pay Louisiana sales tax online through the Louisiana Department of Revenue website or by mail. You must file returns and pay sales tax on a monthly, quarterly, or annual basis, depending on the size of your business.
What is the current Louisiana sales tax rate?
The Louisiana state sales tax rate is 4.45%. Local sales tax rates vary by parish.
Can I charge my customers more than the Louisiana sales tax rate to cover my costs?
No. You cannot charge customers more than the Louisiana sales tax rate. If you do, you may be subject to penalties and fines.
How long do I need to keep sales tax records in Louisiana?
You must keep sales tax records for at least three years in case of an audit by the Louisiana Department of Revenue.
What happens if I file my Louisiana sales tax return late?
If you file your sales tax return late, you may be subject to penalties and interest charges.
What happens if I underreport my sales on my Louisiana sales tax return?
If you underreport your sales on your sales tax return, you may be subject to penalties and interest charges. In extreme cases, you may also face criminal charges.
What happens if I overreport my sales on my Louisiana sales tax return?
If you overreport your sales on your sales tax return, you may be entitled to a refund of the overpayment.
Can I take a credit against Louisiana sales tax for taxes paid to other states?
Yes. You can take a credit against Louisiana sales tax for taxes paid to other states, up to the amount of Louisiana sales tax owed.
What is a Louisiana resale certificate?
A Louisiana resale certificate allows you to purchase merchandise tax-free for resale.
Do I need to provide a Louisiana resale certificate to every supplier I buy from?
Yes. Before purchasing goods or services tax-free for resale, you must provide a Louisiana resale certificate to each seller.
How do I get a Louisiana resale certificate?
You can get a Louisiana resale certificate by filling out form R-1064, entitled “Louisiana Sales Tax Resale Certificate.”
How long is a Louisiana resale certificate valid?
A Louisiana resale certificate is good for one year, after which it must be renewed.
What do I do if I lose my Louisiana sales tax permit or resale certificate?
If you lose your Louisiana sales tax permit or resale certificate, you can obtain a duplicate by contacting the Louisiana Department of Revenue.
What is the Louisiana Head of Household exemption?
The Louisiana Head of Household exemption allows single parents with dependents to claim certain deductions on their personal income tax returns.
Can I claim the Louisiana Head of Household exemption if I have a spouse or domestic partner?
No. To claim the Louisiana Head of Household exemption, you must be single or unmarried and living with a dependent child or children.
Can I claim the Louisiana Head of Household exemption if I do not have custody of my children?
No. To claim the Louisiana Head of Household exemption, you must have physical custody or control of your dependent children for more than half of the tax year.

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Conclusion

Obtaining and maintaining a sales tax permit is crucial to running a compliant and successful business. By understanding the requirements and processes in Louisiana, you can ensure that your business collects and remits sales tax correctly and avoids any penalties for non-compliance. Consulting with a tax professional or Louisiana attorney is recommended to ensure that your Louisiana business meets all necessary sales tax requirements.

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