Registration Deadline
A registration deadline is the date by which a business must register for a sales tax permit after meeting a state's nexus threshold. Once a business exceeds the economic or physical nexus threshold, it is legally required to register with the state's tax authority and begin collecting and remitting sales tax.
- Each state has its own rules on when a business must register after crossing the sales or transaction threshold. Some require immediate registration, while others allow a grace period.
- Failure to register on time can result in penalties, interest, and potential back taxes on past sales.
Example
- A state has an economic nexus threshold of $100,000 in sales in the current or previous year.
- If your business crosses this threshold in July, the state may require you to register immediately or by a set deadline (e.g., within 30 days).
Understanding and tracking registration deadlines ensures compliance and helps avoid fines. If you meet a state's threshold, registering on time allows you to legally collect and remit sales tax without financial risk.