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How Much Does A Vendor's License Cost?

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Beth Kennedy Profile
Beth Kennedy answered
A vendor's license is required for almost any kind of business in the US. The license is needed so retail sales or services be taxed and legalized. To do this the state's current tax prices must be added to the retail price of a product or service. A vendor's license can be obtained by:

  • Identifying what type of license you require
  • Obtain and fill out the appropriate form
  • Collect taxes on sales
There are typically four types of vendor's license. Usually a business will require a regular vendor's license for retail sales firms based in a fixed location. A regular vendor's license can be gained by applying to the auditor of the county where the business is located. Service vendors, transient vendors and delivery vendors must apply for a license directly from the Department of Taxation. Service vendors offer intangible goods such as car repair or window cleaning, transient vendors sell from a temporary location such as a marketplace or craft fair, and delivery vendors do not have a fixed retail location.

The correct form can either be downloaded from the state's Department of Taxation website or obtained in paper form from the auditor office. The latter is only available for regular, fixed-location businesses. Return the form with the correct fee- this is usually $25 for each vendor's license.

Use the current state sales tax rate to collect taxes on sales. These figures can be found on the state's Department of Taxation website. County sales tax must be collected for businesses with a fixed-location. Records of daily sales, taxes collected and copies of any tax exemption certificates must be kept. Lastly, file all tax returns and payments punctually by following the vendor license schedule.

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