Registering in a New State, Step by Step
Once you have nexus, registration is the next move. Here is how the process generally goes.
Once you have nexus, register with the state before you start collecting its sales tax, since collecting unregistered is not a shortcut. Gather your business identifiers, contact details, and activity start date to move quickly, record the filing frequency and deadlines the state assigns, then switch on accurate address level collection from day one.
Register before you collect
You generally need to be registered with a state before you start collecting its sales tax. Collecting without registering is not the shortcut it seems, so registration comes first. Related: Economic Nexus: A State by State Reality
Keep reading: Economic Nexus: A State by State Reality, How to Know When You Are Approaching Nexus, Sales Tax Filing Frequencies Explained. See how ShopTaxie helps you sales tax nexus tracking and filing reminders.
Gather your details
Registration asks for basic business information and details about your activity in the state. Having your identifiers, contact details, and start date ready makes the process straightforward rather than stop and start. Related: When to Stop Worrying and Register
Note your filing obligations
Registering creates ongoing responsibilities, chiefly filing returns on a schedule the state assigns. Record the frequency and deadlines the moment you register, so you never miss the first one. Related: Sales Tax Filing Frequencies Explained
Switch on collection
Once registered, update your checkout to collect the correct rate for that state. This is where an accurate, address level rate matters, so you charge customers the right amount from day one. Related: How do you know whether your SaaS subscription is taxable in a state where you have nexus?
- Register with a state before collecting its tax
- Have your business details ready to speed registration
- Record your filing frequency and deadlines at once
- Switch on accurate collection immediately after
Julien Jimenez
Julien Jimenez is an independent software builder based in Paris. He designs, ships, and operates focused SaaS products for small businesses and independent professionals. Read the full author page.
Frequently asked questions
Should I collect sales tax before registering in a state?
No. You generally need to be registered with a state before collecting its sales tax. Collecting without registering is not the shortcut it seems, so registration comes first.
What should I do right after registering in a new state?
Record the filing frequency and deadlines the state assigns so you never miss the first one, and update your checkout to collect the correct address level rate for that state immediately.
Know where you owe before it is a problem
Sales tax nexus tracking and filing reminders. ShopTaxie is built to help you put this into practice.
Check my nexusMore from the ShopTaxie blog
Economic Nexus: A State by State Reality
How to Know When You Are Approaching Nexus
Sales Tax Filing Frequencies Explained
Get the ShopTaxie playbook
Practical guides on sales tax nexus, straight to your inbox as we publish them. No spam, unsubscribe any time.