How to Apply for a Sales Tax License in Texas

Sales tax charged to your business earns funds for the state of Texas.

Any business in the state of Texas that sells a product; leases or rents goods, merchandise or property; or provides taxable services must have a Texas sales and use tax account. Only with a sales tax license can you pass the taxes the state charges you on to the customer. If you serve customers on a national level, your business is responsible for collecting the necessary tax on products or services provided to customers in Texas.

Instructions

1. Register your business with the Texas Secretary of State's office to obtain a registration number, which you need for your sales tax application if your business is a corporation. You can register online with an SOSDirect account (see Resources).

2. Obtain an employer identification number (EIN) for your business from the Internal Revenue Service (see Resources). This is an additional requirement for the sales tax application.

3. Find the North American Industry Classification System (NAICS) code number for your business's taxable product or service. You can obtain this number through the U.S. Census Bureau (see Resources) by entering your business type in the search function.

4. Put together the information you will need to apply for your Texas sales tax permit. You must have the Social Security number for each of the business's owners and/or officers, the business's Texas business registration number (step 1), the business's EIN number (step 2) and your NAICS code number (step 3).

5. Apply for a Texas sales and use tax account online through the Texas Comptroller of Public Accounts' website (see Resources). Your application processes in two to three weeks.

Tips & Warnings

• It's important to note that Texas cities, counties and transit authorities can opt to charge an additional local sales tax to businesses. Check with your local business office to see if additional registration with the city or county your business is in is a requirement.

References

• Texas Comptroller of Public Accounts: Sales and Use Tax
• U.S. Census Bureau: NAICS

Resources

• Texas Secretary of State: SOSDirect Account Registration
• IRS: Employer ID Numbers
• U.S. Census Bureau: NAICS Product Codes
• Texas Comptroller of Public Accounts: Sales Tax Permit Application
• Texas Comptroller of Public Accounts: Who Must Have a Sales Tax Permit