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An Illinois Sales Tax Permit, or a Retailers’ Occupation Tax Permit, is a state-issued authorization allowing businesses to collect sales tax on taxable goods and services sold within Illinois. This permit is essential for any business engaging in retail sales, ensuring compliance with state tax laws. The primary purpose of the Illinois Sales Tax Permit is to:
- Legally authorize businesses to collect sales tax from customers.
- Ensure businesses remit collected sales taxes to the Illinois Department of Revenue (IDOR).
How to Obtain an Illinois Sales Tax Permit?
To obtain an Illinois Sales Tax Permit, businesses must:
- Register with the Illinois Department of Revenue.
- Provide necessary information, such as business details, federal identification number, and description of business activities.
Here’s a step-by-step guide to help you through the process:
Step 1: Gather Required Information
Before you begin the application process, ensure you have the following information ready:
- Legal business name and DBA (Doing Business As) name, if applicable.
- Federal Employer Identification Number (FEIN) or Social Security Number (SSN) if a sole proprietorship.
- Business address and contact information.
- Detailed description of the business activities.
- Date you intend to start selling taxable goods or services in Illinois.
- Banking information for automatic withdrawal of sales tax payments (optional but recommended).
Step 2: Register Online
- Visit MyTax Illinois: Go to the MyTax Illinois website.
- Create an Account: If you don’t already have an account, you’ll need to create one. Click on “Sign up for a MyTax Illinois account.”
- Complete the Application: After creating an account, log in and select “Register a New Business” under the “Businesses” section. Fill out the application form with the required information.
Step 3: Submit the Application
- Review and Submit: Carefully review all the information you provided to ensure it is accurate. Submit the application once you are confident everything is correct.
- Confirmation: After submission, you will receive a confirmation email with a reference number. Keep this for your records.
Step 4: Receive Your Sales Tax Permit
- Processing Time: The Illinois Department of Revenue (IDOR) typically processes applications within 1-2 business days. However, it can take up to 10 business days during peak periods.
- Permit Issuance: Once approved, you will receive your Illinois Sales Tax Permit, allowing you to legally collect sales tax on taxable sales.
Step 5: Compliance and Reporting
- Collect Sales Tax: Start collecting sales tax from customers at the point of sale.
- File Sales Tax Returns: File regular sales tax returns through MyTax Illinois. The frequency (monthly, quarterly, or annually) depends on your sales volume.
- Remit Collected Taxes: Ensure timely remittance of collected sales taxes to the IDOR.
