Seller Permit FAQs Back to All FAQs

Can I use the sales tax permit number from my old business or from an existing business that I purchased?

In general, you cannot use the Sales Tax Permit (Seller's Permit) number from your old business or from an existing business that you purchased for a new or different business entity. Each Seller's Permit is typically issued to a specific business entity and is not transferable between businesses. Here are some key points to consider:

Business Entity-Specific: A Seller's Permit is typically issued to a specific legal entity, such as a sole proprietorship, partnership, corporation, or limited liability company (LLC). It is not transferable from one entity to another.

Change of Ownership: When purchasing an existing business, the new owner may need to apply for a new Seller's Permit in their own name or under the new business entity. The change of ownership often requires updating the tax registration information with the relevant state or local tax authority.

New Business Entity: If you are starting a new business or forming a new legal entity, you will generally need to apply for a new Seller's Permit. The permit is tied to the specific structure and details of the business, and a new application is required.

Update Information: Even if the business entity remains the same, significant changes, such as a change in business location, a change in ownership structure, or other material changes, may require updating the information associated with the Seller's Permit.

State-Specific Rules: State rules and regulations regarding sales tax permits can vary. It's essential to check with the relevant state or local tax authority to understand the specific requirements and procedures for obtaining a Seller's Permit.

Penalties for Non-Compliance: Attempting to use an old or existing Seller's Permit number for a different business entity without proper authorization can lead to penalties, fines, and legal consequences. It is important to comply with the rules and regulations set by the taxing authorities.

When starting a new business or acquiring an existing business, it's advisable to consult with a tax professional or contact the state or local tax authority to determine the specific requirements for obtaining a new Seller's Permit. This ensures that the business is in compliance with the applicable tax laws and regulations and avoids potential legal issues related to sales tax obligations.

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