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12 April 2015 • www.CPAPracticeAdvisor.com A YEAR IN THE LIFE: SALT ACCOUNTANT Even if the company doesn't have a physical location within a state, in order to sell taxable items and col- lec t a nd rem it sa les t a x , i n most c a ses, t he compa ny mu st have a business license in the state. Contact the state department of revenue for i n for mat ion on f i l i ng a bu si ness license application. A fer the appli- cation is fled, the state will send the company a tax registration number. Businesses that are selling items sporadically or occasionally within a s t at e mu s t s t i l l r e g i s t e r t o do business there and must still collect and remit sales tax. For example, a business that travels to a state once a yea r to sel l ta x able items at a n annual fair is still required to collect and remit sales tax. Av a l a r a h a s prepa red a l i s t of questions that will be useful if you are helping your clients apply for a business license: • W hat is your business activ it y? • W hat are your ex pected annua l sales? • Will you be selling goods to cus- tomers? • Do you or will you have employees within 90 days? • Will your business use a name that i s d i f ferent f rom t he ow ner or corporation name? • Have you ever been acquired by a no t he r b u s i n e s s o r h a v e y o u acquired a business? • W here is your business located? • Tis includes the physical location of your business or warehouse and the location(s) where you sell your products or provide business ser- vices. • W hat is your ownership type (i.e. sole proprietor, proft corporation, LLC, etc.) Check the state websites as some states allow online registration. Te Federation of Ta x Administrators provides a map that provides links to all of the state revenue depar t- ment websites: w w w.taxadmin.org/ fa/link/default.php . At present, every state has its own r ules about who is ta xable, under what circumstances they are taxable, a nd w hat item s a nd ser v ices a re ta xable. W hile there is legislation afoot that could make the taxation process more uniform across state l i nes, for now, decisions a re st i l l made on a state-by-state basis. * Note that if you use or plan on using a state and local tax sofware ser v ice such as Avalara, that sof t- ware company likely will be able to help you obtain registration forms and might even prepare the registra- tions for you. Register With States Where You Conduct Business By Gail Perry, CPA, Editor-In-Chief D o you have clients who are selling items or services that are subject to sales tax outside of their home state? If so, it is likely that these clients are required to register in the states where they are doing business so that they can collect and remit sales tax. In addition, many states have locally administered taxing requirements in cities and counties that require separate registration.