How to Register Delaware Sales Tax Permit 2024: A Step-by-Step Guide

by
How to Register for Sales Tax Permit in Delaware

Ready to launch your exciting business venture in Delaware? As thrilling as it may be, navigating your way through the maze of local laws and acquiring necessary sales tax permits is crucial. That’s why we’re here to ease your business formation journey with our comprehensive guide on registering a sales tax permit in Delaware.

Don’t let daunting paperwork dull your spark! You can swiftly and smoothly secure your legal foothold with the right guidance. That’s where we at LLCBase, step in. Our guide covers everything from exemptions to filing processes, ensuring your Delaware LLC ticks all the legal boxes. With your sales tax permit, you can focus on soaring business growth, always confident of your compliance with Delaware’s tax laws. Now, let’s get started!

Register for Sales Tax Permit

What is a Sales Tax Permit

A sales tax permit, a seller’s permit, is a legal authorization allowing businesses to collect and remit sales tax on taxable products and services. In Delaware, the state sales tax rate is 0%; Delaware has no sales tax, and businesses are required to collect and remit this tax to the Delaware Division of Revenue. Failure to register for a sales tax permit and properly collect and remit sales tax can result in fines, penalties, and potential legal issues.

What You Need to Register for Sales Tax Permits

After starting your business in Delaware, begin registering for a sales tax permit; gathering the necessary information about your business is essential. This information is crucial to ensure a smooth and accurate application process. Here is a detailed explanation of the information you will need to complete the registration process:

  • Legal business name and address: The official name under which your business operates and is registered with the state. The address should be the principal place of business where your company operates, including the street address, city, and zip code.
  • Federal Employer Identification Number (EIN) or Social Security Number (SSN): An EIN is a unique, nine-digit number assigned by the Internal Revenue Service (IRS) to businesses for tax identification purposes. You may use your SSN instead of an EIN if your business is a sole proprietorship or a single-member LLC with no employees.
  • Business structure: This refers to the legal structure of your business, such as a Limited Liability Company (LLC), corporation, partnership, or sole proprietorship. The business structure determines how your company is taxed and the level of liability protection it receives.
  • Business start date: This is the date when your business officially began operations. If you are still determining the exact date, provide an approximate date.
  • Description of products or services offered: Briefly describe your business’s products or services. This information helps the Delaware Division of Revenue understand the nature of your business and determine if it is subject to sales tax collection.
  • Estimated annual sales: Estimate your business’s annual sales. This information is used by the Delaware Division of Revenue to determine if your business meets the sales threshold for sales tax collection in Delaware.
  • Contact information for the business owner or responsible party: Provide the full name, phone number, email address, and mailing address of the individual responsible for managing the business’s sales tax compliance. This person may be the business owner, a partner, or a designated employee.

Obtaining a sales tax permit in Delaware? Let us save you from potential migraines and hire a trustworthy LLC formation service to guide you seamlessly. If you’re scratching your head, unsure who you can turn to for these services, worry not! We researched and assembled a list of the best LLC services in Delaware, famed for their proficiency and vast experience in business formation. Don’t sail into these often rough waters alone; secure yourself with a seasoned pro today!

LLC Services

Rating & Pricing

Top Features

Learn More

#1 Editor's Choice
Legalzoom

$0 + State Filing Fee

  • Free LLC Formation

  • Various Legal Services

  • Attorney Advice

Learn More

$299 + State Filing Fee

  • Single Package

  • Flat Pricing

  • Legal Services

Learn More

How to Apply for a Sales Tax Permit in Delaware

Once you have gathered the necessary information, follow these steps to register for a sales tax permit in Delaware:

Step 1: Gather Business Information

Before starting the registration process, double-check that you have all the business information mentioned above. Having all the necessary details readily available will help you complete the application accurately and efficiently, minimizing the chances of errors and delays.

Step 2: Go to Your State’s Website

Visit the Delaware Division of Revenue website to access the sales tax permit registration portal. This website will provide you with detailed instructions on how to register, as well as any additional state-specific requirements. Familiarize yourself with the instructions and note any unique requirements for Delaware to ensure a smooth application process.

Step 3: Apply for Sales Tax Permit

Depending on Delaware’s preferences, you may apply for a sales tax permit online or by mail and send it to the There is no sales tax in Delaware. The sales tax form is not available in the state is typically used for this purpose. Carefully follow the instructions on the form, entering all relevant information about your business. Be thorough and precise, as errors or omissions may cause delays in processing your application or even result in a denial of your permit.

If applying online, create an account with the There is no sales tax in Delaware’s online portal, if required, and complete the digital version of the sales tax form is not available in the state. Print the form clearly and legibly, using black or blue ink if you will apply by mail. Double-check your entries before submitting the form to avoid any potential issues.

Step 4: Pay the Seller’s Permit Fee

Some states may charge a fee for obtaining a sales tax permit. In Delaware, the $0 (no sales tax) must be paid when submitting your application. Confirm the payment amount and method with the There is no sales tax in Delaware to ensure your payment is processed correctly.

If applying online, you may be prompted to pay the fee using a credit or debit card during the application process. If applying by mail, include a check or money order made payable to the appropriate state agency, as instructed on the sales tax form is not available in the state. Do not send cash through the mail.

After completing these steps and submitting your application, you should receive your sales tax permit within a few weeks. Remember that processing times may vary depending on the state and the volume of applications. Once you receive your permit, you can legally collect and remit sales tax in Delaware, ensuring your business remains compliant and well-prepared for growth.

Recommended: Registering a sales tax permit? Avoid the confusion and let a professional ensure a smooth registration. Trustworthiness and promptness assured! We recommend –

Our #1 Pick: LegalZoom – ($0 + State Fees) Online LLC Setup

Who is Exempted to Apply for a Sales Tax Permit

While most businesses selling tangible goods or certain services are required to collect and remit sales tax in Delaware, there are some exemptions. The following entities or transactions may be exempt from applying for a sales tax permit:

  • Nonprofit organizations: Many states, including Delaware, exempt nonprofit organizations, such as charities, religious institutions, and educational institutions, from collecting sales tax on their sales. However, they may still need to apply for an exemption certificate from the Delaware Division of Revenue.
  • Resellers or wholesalers: Businesses in Delaware that purchase goods or services for resale or as components of other products may be exempt from paying sales tax. These businesses must typically obtain a resale certificate or provide a tax-exempt number to their suppliers.
  • Certain goods and services: Some states exempt specific items or services from sales tax, such as groceries, prescription medications, and medical devices. Businesses selling only these exempt goods or services may not need a sales tax permit.
  • Occasional or casual sellers: Individuals in Delaware who occasionally sell items at garage sales, flea markets, or online platforms may be exempt from obtaining a sales tax permit, provided their sales do not constitute a regular business activity.
  • Businesses operating exclusively in sales-tax-free states: If a business operates solely in a state with no sales tax, such as Delaware, Montana, New Hampshire, or Oregon, it is not required to obtain a sales tax permit. However, this exemption does not apply to businesses in Delaware.

It is crucial to note that sales tax exemption requirements vary by state, and businesses should consult the Delaware Division of Revenue or a tax professional to determine their specific obligations in Delaware. Additionally, even if a business is exempt from obtaining a sales tax permit, it may still be required to file annual or periodic reports with the Delaware Division of Revenue to maintain its exempt status.

FAQs

Who needs to register for a sales tax permit in Delaware?
Any business or person making retail sales or renting tangible personal property in Delaware must register for a sales tax permit.
Do I need to register for a separate sales tax permit if I have multiple locations in Delaware?
No, you only need one sales tax permit per business, regardless of the number of locations.
How do I apply for a sales tax permit in Delaware?
You can apply online through the Delaware Division of Revenue’s website.
Is there a fee to apply for a sales tax permit in Delaware?
There is no fee to apply for a sales tax permit in Delaware.
How long does it take to get a sales tax permit in Delaware?
The Delaware Division of Revenue usually processes applications within 10-15 business days of receiving them.
Can I register for a sales tax permit in Delaware if my business is located out of state?
Yes, out-of-state businesses that make taxable sales in Delaware must register for a sales tax permit.
How often do I need to renew my sales tax permit in Delaware?
Sales tax permits need to be renewed annually by January 1st.
Are there any exemptions from registering for a sales tax permit in Delaware?
There are a few exemptions, such as certain non-profit organizations or businesses selling only wholesale goods.
What information do I need to apply for a sales tax permit in Delaware?
You will need to provide general business information, such as your business name, address, and employer identification number (EIN).
Do I need to provide any additional documents in my sales tax permit application in Delaware?
Depending on the type of business you have, you may need to provide additional documentation, such as a lease agreement or partnership agreement.
Can I apply for a sales tax permit in Delaware before my business officially launches?
Yes, you can apply for a sales tax permit before your business is operational, as long as you plan to make taxable sales or rent tangible personal property in Delaware.
Do I need to register for a separate sales tax permit for online sales made to Delaware customers?
No, if you have already registered for a sales tax permit in Delaware, you do not need to register separately for online sales.
Can I use my sales tax permit number immediately after receiving it in Delaware?
Yes, you can start making taxable sales or renting tangible personal property once you receive your sales tax permit number.
Do I need to display my sales tax permit in my Delaware business?
Yes, you need to display your sales tax permit in a visible location in your business.
What is the sales tax rate in Delaware?
There is no sales tax in Delaware.
Are there any types of sales that are exempt from sales tax in Delaware?
Yes, certain transactions are exempt, such as the sale of goods that will be resold by the buyer.
Do I need to file a sales tax return if my business did not make any sales in Delaware during a certain period?
Yes, you still need to file a zero sales tax return if you have a sales tax permit in Delaware.
How can I file a sales tax return in Delaware?
You can file your sales tax return online through the Delaware Division of Revenue’s website.
How often do I need to file a sales tax return in Delaware?
You need to file a sales tax return and remit any taxes owed on a quarterly basis in Delaware.
Are there any penalties for late or non-filing of a sales tax return in Delaware?
Yes, there are penalties for late or non-filing of a sales tax return or for failure to remit sales tax owed.
Can I pay my sales tax owed online in Delaware?
Yes, you can pay your sales tax owed online through the Delaware Division of Revenue’s website.
What happens if I discover an error on a previous sales tax return filed in Delaware?
You can file an amended sales tax return to correct any errors on a previous return.
Do I need to charge sales tax to customers outside of Delaware if my business is located in Delaware?
You only need to charge sales tax to customers located within Delaware.
How can I cancel my sales tax permit in Delaware?
You can request to cancel your sales tax permit by contacting the Delaware Division of Revenue’s Business Master File Unit.
Do I need a separate sales tax permit for my Delaware food establishment?
Yes, food establishments in Delaware require a separate permit from the Department of Public Health.
Are there any fines or penalties for not having a valid sales tax permit displayed in my Delaware business?
Yes, you can be fined for not displaying your sales tax permit in a visible location in your Delaware business.
How can I confirm if a business has a valid sales tax permit in Delaware?
You can search for active business licenses in Delaware on the Division of Revenue’s website.
What is the process for transferring a sales tax permit to a new business owner in Delaware?
Contact the Delaware Division of Revenue to initiate the process for transferring a sales tax permit to a new business owner.
Where can I register for a sales tax permit in Delaware?
You can register for a sales tax permit in Delaware through the Division of Revenue.
Who is required to obtain a sales tax permit in Delaware?
Any business that sells tangible personal property or taxable services in Delaware is required to obtain a sales tax permit.
What are the benefits of obtaining a sales tax permit in Delaware?
A sales tax permit allows you to legally sell taxable products and services in Delaware and collect and remit sales tax.
How do I obtain a Delaware sales tax number?
You can obtain a Delaware sales tax number by completing and submitting an Application for Delaware Sales Tax Number to the Division of Revenue.
Is there a fee to register for a sales tax permit in Delaware?
No, there is no fee to register for a sales tax permit in Delaware.
Can I register for a sales tax permit online in Delaware?
Yes, you can register for a sales tax permit online through the Delaware Business One Stop.
How long does it take to receive a Delaware sales tax permit?
It typically takes 10-14 business days to receive a Delaware sales tax permit after submitting your application.
What documents are required to register for a sales tax permit in Delaware?
You will need your federal employer identification number (FEIN), business name and address, and a description of the products or services you sell.
Do I need a state business license to obtain a Delaware sales tax permit?
No, a state business license is not required to obtain a Delaware sales tax permit.
Is a sales tax permit transferable if my business relocates to a new address in Delaware?
No, a sales tax permit is not transferable if your business relocates to a new address in Delaware.
How do I renew my Delaware sales tax permit?
Delaware sales tax permits do not expire, so there is no need to renew your permit.
Can I amend my Delaware sales tax permit if my business changes its name or address?
Yes, you can amend your Delaware sales tax permit if your business changes its name or address.
What happens if my Delaware sales tax permit is lost or stolen?
If your Delaware sales tax permit is lost or stolen, you should contact the Division of Revenue to request a replacement.
Are there any penalties for failing to obtain a sales tax permit in Delaware?
Yes, there are penalties for failing to obtain a sales tax permit in Delaware. Penalties include fines, interest, and possible criminal prosecution.
How do I remit sales tax collected to the state of Delaware?
You can remit sales tax collected to the state of Delaware online through their e-pay system, by mail, or in person.
What are the sales tax rates in Delaware?
Delaware does not have a sales tax, so there are no sales tax rates.
Are there any local sales taxes in Delaware?
No, there are no local sales taxes in Delaware.
What types of products and services are subject to sales tax in Delaware?
In Delaware, most tangible personal property and certain services are subject to sales tax.
Are there any exemptions from sales tax in Delaware?
Yes, certain products, such as groceries and prescriptions, are exempt from sales tax in Delaware.
Do I need to file a sales tax return in Delaware if I did not make any sales during a given period?
Yes, you must file a sales tax return even if you did not make any sales during a given period.
How frequently do I need to file a sales tax return in Delaware?
You are required to file a sales tax return in Delaware on a monthly basis.
Are late fees assessed if I file a sales tax return late in Delaware?
Yes, late fees are assessed if you file a sales tax return late in Delaware.
What is the statute of limitations for audits of Delaware sales tax returns?
The statute of limitations for audits of Delaware sales tax returns is three years from the due date or filing date, whichever is later.
Do I need to keep records of sales and purchases for Delaware sales tax purposes?
Yes, you are required to keep records of sales and purchases for Delaware sales tax purposes.
Can I use a resale certificate in Delaware?
Yes, you can use a resale certificate in Delaware to purchase goods for resale without paying sales tax.
What happens if I fail to collect and remit the correct amount of sales tax in Delaware?
If you fail to collect and remit the correct amount of sales tax in Delaware, you may be subject to penalties and interest.
Who can I contact if I have additional questions about obtaining a sales tax permit in Delaware?
You can contact the Division of Revenue’s Business Tax Hotline at (302) 577-8778 for assistance with obtaining a sales tax permit in Delaware.

Also Read

Conclusion

Registering for a sales tax permit in Delaware is critical for any business selling taxable goods or services. By following the steps outlined in this guide, you can ensure a smooth and efficient registration process, allowing you to focus on the growth and success of your business. Staying compliant with the Delaware Division of Revenue not only helps you avoid potential fines and legal issues but also builds trust with your customers and supports the local economy.

As a business owner in Delaware, it is essential to remain up-to-date with any tax laws and regulations changes and the filing requirements for your sales tax returns. By staying informed and proactive in managing your sales tax obligations, you can continue to operate your business with confidence, contributing to the thriving economy of The First State. Visit LLCBase regularly to stay informed and access valuable resources tailored to your needs. We aim to provide you with the most up-to-date information and support, ensuring your business’s continued success in Delaware.

Leave a Comment