If your limited liability company (LLC) sells physical products or certain types of services, you will need to collect and pay sales tax. In Illinois, the first step is visiting the revenue department website and registering for sales tax in order to acquire a seller’s permit, or sales tax permit.
What Products and Services Are Subject to Sales Tax in Illinois?
Sales of tangible property are subject to sales tax in Illinois. Groceries are also subject to sales tax. Most services in Illinois are exempt from sales tax.
Illinois Sales Tax Rate
The sales tax rate in Illinois is 6.25%.
Five states have no sales tax. Colorado has the lowest sales tax at 2.9%, while California has the highest rate at 7.25%.
How to Register for Illinois Sales Tax
In Illinois, acquire a seller’s permit by following the Department of Revenue’s instructions:
- Go to the My Tax Illinois website.
- Register for an account.
- Fill out the business tax registration form.
- There is no fee for business tax registration in Illinois.
Use our Sales Tax Calculator to calculate taxes and total purchase amount.
In Illinois, and across the country, collecting sales tax is a must if you want to avoid potentially heavy fines and even closure. It’s crucial that you follow your state’s laws, and you might consider consulting with an accountant or tax attorney to make sure you’re in full compliance.