What should a seller do before collecting a state's sales tax?

Register with that state's tax authority when required.

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  1. Collect first and register years later
  2. Obtain the required state authorization ✔
  3. Apply for a federal trademark

Why: A seller needs the proper state sales-tax account, permit, or certificate before making taxable sales when state law requires it. The name and timing vary by state.

Huh, didn't know that: New York calls its sales-tax authorization a Certificate of Authority.

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References

Answer: Obtain the required state authorization. A seller needs the proper state sales-tax account, permit, or certificate before making taxable sales when state law requires it. The name and timing vary by state.

  1. New York Tax Department, How to Register for Sales Tax www.tax.ny.gov/pubs_and_bulls/tg_bulletins/st/how_to_register_for_nys_sales_tax.htm
    You cannot legally make any taxable sales until you have received your Certificate of Authority.
    Checked 2026-10-11.

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