Got my LLC approval from the state last week. I thought that would cover everything, but apparently I still need a seller's permit to collect sales tax. Does anyone know the actual process for Wisconsin? I'm selling handmade woodworking items online and at local craft fairs. Not sure if the permit is through the state or if it's separate for online vs in-person sales.
Seller's Permit
My Wisconsin LLC was approved, but I need a separate seller's permit
The Wisconsin Department of Revenue handles seller's permits. You apply online through their website. Theres a $20 fee for the seller's permit, and you may need to register for withholding if you have employees. Since it's just you, the seller's permit should be straightforward. It's not automatic with the LLC.
Craft fairs vs online can be tricky. Wisconsin doesn't distinguish much for the permit itself, but if you sell at out-of-state fairs, you might need to look into that state's rules. For in-state sales, the seller's permit covers both online and in-person. Make sure you get the permit before you start selling, though. The DOR is pretty clear about that.
I went through this last year. The MyTax Wisconsin account is what you need. Register there, then apply for seller's permit. Approval was quick for me, a few business days. But keep in mind you'll also need to file sales tax returns, even if you have no sales. That part caught me off guard.
Thanks for the input. So the LLC approval doesn't automatically register me for sales tax. I'll go set up the MyTax ac count. Does anyone know if the seller's permit is required if I only sell at a few craft fairs a year? Or is there a threshold?
No threshold for Wisconsin. Any taxable sales require the permit, even if it's just one fair. The DOR doesn't mess around with that. You can get away with a temporary permit for short-term events, but for year-rounD online sales, get the regular seller's permit.
Wait, temporary permit is a tthing? I just got the regular one. Is there any downside for a small crafter? I sell at maybe 3-4 fairs a year and online occasionally. The regular permit seems fine, but I'm wondering if I'm overcomplicating things.
Temporary permit is only for sellers who are not otherwise required to register. Since you already have the regulzr permit, you're fine. The regular permit covers everything. The temporary one is just for those one-time event vendors. No need to switch.
Also, if you're selling online, check if marketplaces like Etsy collect and remit sales tax for you. That can simplify things. But you still need the seller's permit to report your own sales and for in-person events.
I do sell on Etsy. Does Etsy's collection mean I don't need to report those sales? Or do I still need to include them in my sales tax return?
If Etsy collects and remits, you don't remit that tax, but you still need to report those sales as exempt on your return. The DOR wants to see the total sales, and then you deduct the marketplace-facilitated sales. It's a bit of a pain but manageable.
One more thing: you need to keep records of all sales, including Etsy. The DOR can audit, and thhey'll want to see you're not double-collecting. Also, if you sell at a fair, you need to provide the permit number to the organizer. Some fairs require it upfront.
Makes sense. I've been putting off the MyTax setup because it seemed overwhelming, but hearing it's just a few steps is reassuring. I'll do it this week.
The MyTax system is actually pretty pretty user-friendly. Just have your LLC info and EIN handy when you apply. And don't forget to check the box for sales tax filing frequency. They'll assign you to monthly or quarterly based on your estimated sales.
The filing frequency can be quarterly if you estimate low sales. That's easier for small businesses. But be accurate—if you end up owing more than a certain amount, they might bump you to monthly.