How to Register for a Sales Tax Permit in Missouri

2017-11-22

Years of working as an employee have equipped you with knowledge in the industry. Every task you performed was taken as a lesson that would lead to the point when you leave the company in order to start your own business. As you live in the state of Missouri, you have to make sure you are running the operation in accordance with the laws of the state.

In the years leading up to the decision to start your own business, you have scouted the market and have found your niche segment and the products to sell. You also have already contacted the suppliers and have everything ready in that regard. Now all you need is to take the steps to start the operation following all the laws and regulatory requirements in Missouri.

Registering a New Business in Missouri

Steps to starting a business in the state of Missouri don’t differ much from other U.S. states. The Missouri Secretary of State office has put out a short list of steps one has to follow in order to register a business. Topping the list is consulting with professionals like attorneys who could help you in the process. Other steps include choosing a business entity, which means selecting the business’ legal form, whether a corporation, limited partnership or a sole proprietorship. A number of filings can be found through the Secretary of State’s online services. If applicable, you will have to register for taxes, and if you plan on buying and selling merchandise, you should get a sales tax permit, which is done through the Missouri Department of Revenue.

Another step the state of Missouri requires you to take is to register with the Missouri Division of Employment Security for unemployment tax purposes at the Missouri Department of Labor & Industrial Relations. Furthermore, you have to apply for an Employer Identification Number (EIN), also known as a Federal Tax Identification Number, which can be done online through the Internal Revenue Service (IRS).

You might also have to register with other agencies, depending on your line of business, as well as register for a business license and other permits that might be required by your city or county.

For more information, a checklist created by the University of Missouri can help you along the way.

Missouri Sales Tax Permits

Whether you need to apply for a Sales Tax Permit in the state of Missouri depends on several factors. One of the factors is the so-called “sales tax nexus”, or simply put, a significant presence in the state.

According to the Missouri Department of Revenue, a company having an office in the state or an employee who is present in the state more than two days a year is considered to have a nexus in the state. In addition, the state considers a company to have a nexus if they store goods in a warehouse, deliver merchandise in Missouri in vehicles owned by the taxpayer, have independent contractors or representatives in the state and who own a real or personal property.

If you fall into any of these categories, the next step is finding out whether the merchandise you sell is taxable. Missouri’s DoR states that generally retail sales of tangible personal property is taxable, However, there are certain exemptions, like services that are not taxable unless they include selling, creating or manufacturing a product.

If you have established that you do need a sales tax permit, as you will be purchasing merchandise for resale, your next step is to apply for the permit.

As noted, anyone selling tangible personal property in Missouri needs to register for a Sales Tax Permit. This can be done online through the Department of Revenue. In case you would not like to do the registration online, you have the option of downloading the Missouri Tax Registration Application (Form 2643) and submit it to the Department of Revenue (Address provided at the end of the article).

The form has to be submitted together with a bond that must be equal to three times the average monthly sales and use tax. You can determine the bond amount online, and following two years of clean payment history, you can request a bond refund.

In addition to the bond and the Form 2643, you will have to submit personal identification info, your business identification info, estimated sales to buyers in Missouri and the business legal form. The cost of applying for the Sales Tax Permit is represented by the required bond. Your Sales Tax Permit will be ready between five to eight days.

Sales Tax Exemptions in Missouri

However, entities buying merchandise for resale, such as wholesalers, can avoid paying sales tax on their purchases. In order to do so, the buyer is required to submit a Missouri Sales and Use Tax Exemption Certificate, and this can only be used if filled out properly and if you plan to purchase merchandise to resell.

When buying, make sure you present the Missouri Sales and Use Tax Exemption Certificate (called Form 149) to the seller when you are making the purchase.

The same way you can present the exemption certificate to a seller, you can also be presented with one by your future buyer. In such a case, you have to verify that Form 149 has been filled out properly and that the buyer ID is valid. In case you don’t think a buyer will resell the merchandise or that there is something wrong with the transaction, you have the right to refuse to accept the exemption certificate. If you do accept it, make sure you hold a fully executed copy of the certificate in case of audit. Unfortunately, the state of Missouri does not provide the option of verifying the resale certificate.

While this guide is a shortened version of the steps you have to take in order to register and run a business under the regulations of the state of Missouri, we urge you to check with your local or county authorities for specific details or any other permits you might need to get on that local or county level.

Contact Details

Missouri Department of Revenue

Business Tax Registration

P.O. Box 3300
Jefferson City, MO 65105-3300
Phone: (573) 751-5860
Fax: (573) 522-1722
[email protected]

Missouri Secretary of State

600 West Main Street
Jefferson City, MO 65101
Main Office: (573) 751-4936
[email protected]

Henley Johnson

Henley currently works as a sales representative for Direct Liquidation, assisting businesses with product sourcing of liquidated merchandise from the largest retailers in the world. Whether you are looking for a pallet or a truckload Henley is here to help you grow your business.

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