How to Get Wisconsin Sales Tax Permit | A Comprehensive Guide

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Wisconsin Sales Tax Permit

Have you ever wondered what a sales tax permit is in Wisconsin? If you don’t, then we will guide you through it. In Wisconsin, a sales tax permit, also known as a seller’s permit, is a legal document that allows businesses, specifically Wisconsin LLC, to collect and remit sales tax to the Wisconsin government. This permit ensures businesses operate legally and have the necessary permissions to conduct sales within a particular state. Wisconsin 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 Wisconsin 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 Wisconsin

What is a Sales Tax Permit?

A sales tax permit is Wisconsin-issued license that allows businesses to collect and remit sales tax on the goods and services they sell. This permit ensures Wisconsin businesses operate legally and have the necessary permissions to conduct sales within a particular state. In Wisconsin, 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 Wisconsin require a sales tax permit. This includes brick-and-mortar stores, online retailers, and service providers. Wisconsin 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 Wisconsin, 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 Wisconsin, 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 Wisconsin 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 Wisconsin

The process for obtaining a sales tax permit varies from state to state. Generally, Wisconsin businesses must apply through the Wisconsin 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 Wisconsin business needs a sales tax permit based on the goods or services you sell and where you operate.

Most Wisconsin 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 Wisconsin E-commerce and online marketplaces.

Step 2: Register Your Wisconsin Business

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

Your Wisconsin business name should be unique, memorable, and reflective of your products or services. There is a complete guide on Wisconsin Business Name Search for a proper Wisconsin business name. You can also check the availability of your desired business name by searching the Wisconsin Department of Financial Institutions‘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 Wisconsin 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 Wisconsin sales tax permit application. To obtain a sales tax permit in Wisconsin, 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 Wisconsin 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 Wisconsin, such as a brick-and-mortar location, employees, or inventory storage.
  7. Estimated Sales: Estimate your expected monthly or annual sales volume in Wisconsin 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 Wisconsin.

It’s important to note the exact requirements and processes in Wisconsin. It is recommended to visit the official website of the Wisconsin 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 Wisconsin, either online or by paper. Be prepared to answer questions about your business operations, products, and services. You can register your Wisconsin sales tax permit in Wisconsin Department of Revenue.

Step 5: Pay Any Required Fees

In Wisconsin, 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 $20. 

Step 6: Submit The Application

Submit your completed application, along with the required fee of $20, to the Wisconsin 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, Wisconsin businesses must maintain compliance with Wisconsin 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 Wisconsin is 5.00%. 
  • 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 Wisconsin, typically monthly, quarterly, or annually, depending on your sales volume and Wisconsin requirements. Be sure to remit the sales tax collected during the reporting period.
  • Renew your Permit: Wisconsin 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, Wisconsin businesses that fail to collect and remit the Wisconsin 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 Wisconsin. To have a Home-Based Business in Wisconsin, 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 Wisconsin, 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 Registered 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 Wisconsin, you can visit the Wisconsin 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 Wisconsin.

FAQs

What is a sales tax permit?
A sales tax permit is a document that allows businesses to collect and remit sales tax in Wisconsin.
Who needs a sales tax permit in Wisconsin?
Anyone who sells taxable goods or services in Wisconsin is required to have a sales tax permit.
How do I apply for a Wisconsin sales tax permit?
You can apply for a sales tax permit online through the Wisconsin Department of Revenue website or by filling out a paper application.
Does it cost anything to apply for a Wisconsin sales tax permit?
No, there is no cost to apply for a Wisconsin sales tax permit.
How long does it take to get a sales tax permit in Wisconsin?
It typically takes up to 10 days to receive a sales tax permit in Wisconsin.
Is a sales tax permit the same thing as a resale certificate in Wisconsin?
No, a sales tax permit allows you to collect and remit sales tax, whereas a resale certificate allows you to purchase goods from suppliers without paying sales tax.
Can I use my sales tax permit from another state in Wisconsin?
No, if you are making sales in Wisconsin, you must have a sales tax permit from Wisconsin.
What information do I need to apply for a sales tax permit in Wisconsin?
You will need your business name and contact information, federal tax ID number, description of your business activities, and personal identifying information if you are a sole proprietor.
How often do I need to file sales tax returns in Wisconsin?
Wisconsin sales tax returns are typically filed quarterly.
What is the sales tax rate in Wisconsin?
The sales tax rate in Wisconsin is 5%.
Are there exemptions to Wisconsin sales tax?
Yes, there are certain goods and services that are exempt from Wisconsin sales tax.
How do I report exempt sales on my Wisconsin sales tax return?
Exempt sales should be reported separately on your Wisconsin sales tax return.
Can I be fined for not having a sales tax permit in Wisconsin?
Yes, you can be fined for not having a sales tax permit in Wisconsin.
Can I use my Wisconsin sales tax permit to purchase goods without paying sales tax?
No, a sales tax permit only allows you to collect and remit sales tax, not to exempt purchases.
Can I apply for a temporary Wisconsin sales tax permit?
Yes, you can apply for a temporary Wisconsin sales tax permit if you plan to make sales at a temporary event, such as a fair or festival.
How do I renew my Wisconsin sales tax permit?
Wisconsin sales tax permits are typically renewed every two years through the Wisconsin Department of Revenue website.
What happens if I lose my Wisconsin sales tax permit?
You can request a copy of your Wisconsin sales tax permit through the Wisconsin Department of Revenue website.
How do I close my Wisconsin sales tax permit?
You can close a sales tax permit in Wisconsin by notifying the Wisconsin Department of Revenue in writing.
Do I need a federal tax ID number to apply for a Wisconsin sales tax permit?
Yes, you need a federal tax ID number to apply for a Wisconsin sales tax permit.
Can I get a Wisconsin sales tax permit for a nonprofit organization?
Yes, nonprofits that sell taxable goods or services in Wisconsin are required to have a sales tax permit.
How do I change my business address on my Wisconsin sales tax permit?
You can update the business address on your Wisconsin sales tax permit through the Wisconsin Department of Revenue website.
Does a home-based business need a sales tax permit in Wisconsin?
Yes, home-based businesses that sell taxable goods or services in Wisconsin are required to have a sales tax permit.
Can I apply for a Wisconsin sales tax permit by mail?
Yes, you can apply for a Wisconsin sales tax permit by mail using a paper application.
What is the penalty for not filing a Wisconsin sales tax return?
The penalty for not filing a Wisconsin sales tax return is 5% of the tax due per month or part of a month that the return is late, up to a maximum of 25%.
Can I collect sales tax for a new business before I receive my sales tax permit in Wisconsin?
No, you are not authorized to collect sales tax until you receive your sales tax permit in Wisconsin.
How do I change my business name on my Wisconsin sales tax permit?
You can update your business name on your Wisconsin sales tax permit by submitting a written request to the Wisconsin Department of Revenue.
Do I need a separate sales tax permit for each location in Wisconsin?
No, you only need one Wisconsin sales tax permit per business.
Can I apply for a Wisconsin sales tax permit online if I am a nonresident?
Yes, nonresident businesses can apply for a Wisconsin sales tax permit online using the Wisconsin Department of Revenue website.
How do I get a sales tax permit in Wisconsin?
You can apply for a sales tax permit online or by completing a Wisconsin Business Tax Registration form.
Where do I apply for a sales tax permit in Wisconsin?
You can apply for a sales tax permit online through the Wisconsin Department of Revenue website or by mail using a Wisconsin Business Tax Registration form.
Is there a fee to apply for a sales tax permit in Wisconsin?
No, there is no fee to apply for a sales tax permit in Wisconsin.
Do I need to renew my sales tax permit in Wisconsin?
No, your sales tax permit will remain valid as long as you continue to meet the requirements for having a sales tax permit in Wisconsin.
Are there any exemptions from the sales tax in Wisconsin?
Yes, there are some exemptions from the sales tax in Wisconsin, such as for certain types of clothing, unprepared food, and prescription medications.
When are sales tax returns due in Wisconsin?
Sales tax returns are due on the last day of the month following the end of the quarter.
Can I file sales tax returns and pay the sales tax online in Wisconsin?
Yes, you can file sales tax returns and pay the sales tax online through the Wisconsin Department of Revenue website.
Do I need to maintain records of my sales and sales tax collections in Wisconsin?
Yes, you must maintain accurate records of your sales and sales tax collections in Wisconsin.
What happens if I fail to obtain a sales tax permit in Wisconsin?
If you fail to obtain a sales tax permit in Wisconsin, you may be subject to penalties and interest.
What happens if I fail to collect and remit the correct amount of sales tax in Wisconsin?
If you fail to collect and remit the correct amount of sales tax in Wisconsin, you may be subject to penalties and interest.
Can I appeal a decision by the Wisconsin Department of Revenue about my sales tax permit?
Yes, you may appeal a decision by the Wisconsin Department of Revenue about your sales tax permit.
Is there a limit on the amount of sales tax I can collect in Wisconsin?
No, there is no limit on the amount of sales tax you can collect in Wisconsin.
What are some common mistakes to avoid when applying for a sales tax permit in Wisconsin?
Common mistakes to avoid include not registering for all necessary tax types, providing inaccurate information, and failing to respond to requests for additional information.
Do I need a federal employer identification number (EIN) to obtain a sales tax permit in Wisconsin?
No, you do not need a federal EIN to obtain a sales tax permit in Wisconsin, but you may need one for other purposes such as hiring employees.
What information do I need to provide when applying for a sales tax permit in Wisconsin?
You will need to provide information such as your name and address, business type, Federal EIN if applicable, and estimated sales.
What types of businesses need a sales tax permit in Wisconsin?
Any business that sells or leases tangible personal property or taxable services in Wisconsin needs a sales tax permit.
Is there a penalty for filing my Wisconsin sales tax return late?
Yes, there is a penalty for filing your Wisconsin sales tax return late.
Can I download a Wisconsin Business Tax Registration form online?
Yes, you can download a Wisconsin Business Tax Registration form online from the Wisconsin Department of Revenue website.
Is sales tax due on services in Wisconsin?
In most cases, sales tax does not apply to services in Wisconsin.
What is the use tax in Wisconsin?
The use tax in Wisconsin is a tax on tangible personal property purchased out-of-state for use in Wisconsin.
Do I need a separate use tax permit in Wisconsin?
No, there is no separate use tax permit in Wisconsin. Use tax collections are included on your sales tax return.
What happens if I don’t pay my use tax in Wisconsin?
If you don’t pay your use tax in Wisconsin, you may be subject to penalties and interest.

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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 Wisconsin, 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 Wisconsin attorney is recommended to ensure that your Wisconsin business meets all necessary sales tax requirements.

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