Tax
Sales tax permit
A sales tax permit is a state registration authorising a business to collect sales tax from customers. Most states require registration before any collection occurs, and collecting sales tax without a permit is generally unlawful even if the money is remitted.
In plain terms: State permission to collect sales tax. Required before you start collecting.
Why it matters
The order matters and founders get it backwards: register first, then collect. Registration also creates a filing obligation for every period afterwards, including periods with no sales, so registering early in states you have not reached creates needless returns.
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