State Unemployment Insurance Employer Account

Our company clients often delegate the application and subsequent processing of sales tax permits and state unemployment insurance employer accounts to our accounting firm. We also assist clients in applying for various business licenses and permits issued by county authorities, such as liquor licenses for restaurants and health permits for nail salons. Among these, the most crucial is the sales tax permit, enabling businesses to collect and remit sales tax on applicable products and services.

 

Why Submit Sales Tax in the United States?

In the United States, a sales tax permit (also known as a sales tax business license or dealer's permit) is a credential used to legally collect sales tax. Companies need a sales tax permit because, according to state laws, they must collect sales tax from buyers when selling goods or services. Holding a sales tax permit qualifies companies to collect and remit these taxes to the state government. This permit also ensures that companies operate legally and comply with state tax regulations. Failure to have a sales tax permit may result in fines or other legal consequences. Therefore, companies usually require a sales tax permit to legally collect sales tax from buyers and fulfill their tax obligations.

 

How Do Companies Submit Sales Tax Accurately and On Time?

Businesses in the United States that need to submit sales tax can either do it themselves or hire professional accountants to ensure accurate and timely submissions. Chinese business owners in various industries and states usually entrust Flushing Accounting Center with all tax and accounting services, including accurate and timely submission of sales tax.

 

Experienced accountants at Flushing Accounting Center typically perform the following tasks when handling business sales tax:

 

Determine Applicable Tax Rates 

Identify applicable tax rates for products or services involved, as different goods or services may have different sales tax rates in different states.

 

Collect Sales Data 

Gather data related to business sales, including sales amounts and applicable tax rates.

 

Reporting and Filing 

Fill out and submit sales tax returns, calculating tax amounts based on collected sales data.

 

Assist Compliance 

Help businesses adhere to state sales tax regulations, ensuring legal compliance and timely remittance of sales tax.

 

Provide Consultation and Advice

Offer advice on best tax practices and how to minimize tax risks.

 

Troubleshoot Issues 

Assist in resolving any disputes or problems related to sales tax, including potential refund applications and report amendments.

 

Handling business sales tax requires compliance with state tax regulations, and accountants ensure businesses operate in accordance with specific regulations and requirements based on their location. Seeking the help of professional accountants helps avoid potential tax risks and increases compliance.

 

According to research from the Tax Foundation, here are some key findings on U.S. sales tax in 2023

45 states and the District of Columbia levy sales tax statewide.

38 states impose local sales tax, which can be comparable to or even exceed state rates in some cases.The top five states with the highest average combined state and local sales tax rates are Tennessee (9.548%), Louisiana (9.547%), Arkansas (9.44%), Washington (9.40%), and Alabama (9.24%).Starting July 2023, South Dakota reduced its state sales tax rate from 4.5% to 4.2%, the most recent statewide rate reduction since New Mexico lowered its rate from 5.125% to 5% in July 2022.

Sales tax rate disparities may lead consumers to cross-border or online shopping.

 

After successfully registering a company and applying for a federal employer identification number (EIN), most companies must obtain business licenses and permits issued by various state, city, and county authorities based on their industry and location before engaging in commercial activities.

 

Business License
Most businesses need a general business license or permit to operate legally, typically issued by the city or county where your business is located.