Unsure where you owe sales or use tax or dealing with legacy compliance pain?

Check Your Exposure

Do I need to register for sales tax?

Sales tax registration is required only after certain conditions are met. Most businesses do not need to register in every state where they sell. Registration is typically required when a business has established sales tax nexus in a jurisdiction. The key is understanding where nexus exists, when it was triggered, and whether action is required now or can wait.

What determines whether registration is required

Sales tax nexus

Registration is generally required once a business has sales tax nexus in a jurisdiction. Nexus can be established through physical presence or economic activity.

Common nexus triggers include:

See the glossary definition for sales tax nexus for a plain-English explanation.

Economic nexus thresholds

Many states require registration once economic nexus thresholds are crossed. These thresholds vary by state and are usually based on revenue, transaction counts, or both.

Crossing a threshold does not always mean registration is required immediately. Timing matters.

Physical presence

Physical presence such as employees, offices, or stored inventory often creates immediate registration obligations, regardless of sales volume.

Marketplace considerations

Marketplaces may collect sales tax on behalf of sellers in some states. However, marketplace collection does not always eliminate the seller’s obligation to register. This depends on the state and the nature of the sales.

Common misconceptions about registration

Selling into a state does not automatically require registration. Registration is not required just because customers live in a state. Registering too early can create unnecessary filing obligations. Registering too late can increase exposure and cleanup complexity.

What happens if you register too early

Registering before it is required can:

  • Create ongoing filing obligations even when no tax is owed
  • Increase administrative burden
  • Complicate future cleanup or voluntary disclosure options

This is why understanding exposure first is critical.

What happens if you register too late

Delaying registration after it is required can:

  • Allow exposure to accumulate
  • Increase penalties and interest
  • Limit remediation options

The goal is not speed. The goal is correct timing.

How to decide what to do next

A practical decision process looks like this:

Step 1

Identify where sales tax nexus exists

Step 2

Determine when nexus was triggered

Step 3

Understand whether registration is required now

Step 4

Decide whether filing should begin immediately or later

This process removes guesswork and prevents unnecessary action. Learn how to identify sales tax exposure before choosing any software.

How TaxMap Helps With Registration Decisions

TaxMap helps you:

TaxMap does not force registration or filing. It gives you clarity so you can decide. See understand where exposure exists.

Check Your Exposure

Frequently asked questions

No. Registration depends on nexus, not customer location alone.
Yes. Collecting sales tax generally requires registration. However, you should understand whether collection is required before registering.
Yes, but waiting too long can increase exposure. Timing should be based on facts, not assumptions.
Use tax exposure can exist even if sales tax registration is not required. Both should be considered together.
Yes. Many businesses review exposure with their CPA after understanding where action is required.