How do I apply for a seller's permit?

How to Apply for a Seller's Permit in Illinois

In Illinois, a seller's permit is known as a Sales Tax License. It allows your business to collect sales tax from customers and report it to the Illinois Department of Revenue (IDOR).

Steps to Obtain a Sales Tax License

• Register Your Business: Ensure your business is properly registered with the Illinois Secretary of State if applicable. This is a prerequisite for tax registration.
• Gather Required Information: Prepare details such as your federal Employer Identification Number (EIN), business address, ownership information, and the nature of your business activities.
• Apply Online: Visit the Illinois Department of Revenue’s website and complete the Illinois Business Registration Application (Form REG-1) online. This form registers your business for sales tax and other relevant taxes.
• Submit the Application: After completing the form, submit it electronically. There is no fee for obtaining the Sales Tax License.
• Receive Your License: As of 2026, once approved, you will receive your Sales Tax License number, which you must display or keep accessible for your business operations.

Operational Considerations

• Sales Tax Collection and Reporting: After obtaining the license, set up processes to collect sales tax on taxable goods and services. Implement bookkeeping and accounting systems to track sales tax collected.
• Filing Requirements: File sales tax returns with IDOR on a monthly, quarterly, or annual basis, depending on your sales volume. Automating tax reporting can improve compliance and efficiency.
• Compliance and Recordkeeping: Maintain accurate sales records and receipts to support your tax filings. Illinois requires businesses to keep records for at least three years.
• Employee Training: Train staff on when and how to collect sales tax to avoid errors and potential penalties.