Is this still accurate information in 2023? We're digging into this today and the ST-2 form looks different now (doesn't appear to require city by city detail, for example). In my view, the verbiage on line 6a and 7a seems to indicate that, "Sales from Outside IL" should be logged there and there is no reference to those rows on ST2. I can't imagine any small business would be expected to generate location to location info on every sale in IL during the year. Anyway, great video! This information is very hard to find and I'm sure pulling it together isn't easy. @@LedgerGurus
Here's what it says in the instructions: Line 6a - General Merchandise Base Enter the portion of Line 3 that you received from general merchandise you sold to users in Illinois, plus the amount you received from general merchandise you sold for use in Illinois in performing your service. Note: Remote retailers and marketplace facilitators cannot use Line 6a to report sales made to Illinois customers. Instead remote retailers and marketplace facilitators must use line 4a to reports these sales. Here's the link to the instructions: tax.illinois.gov/content/dam/soi/en/web/tax/forms/sales/documents/sales/st-2-instr.pdf
Ok so I have my EIN , LLC and I just registered with a reg 1 form. Is there anything else that I need ? I’m trying to file for a seller permit but when I try it takes me back to form Reg 1. I’m so confused. Once my business is registered with the Reg 1 form do I still need to file for seller permit ?
You don't have to pay back taxes. You just start collecting and then remit what you've collected. When you register for the sales tax permit, make sure to use the right start date. You want to use the date that you will start collecting taxes on. To determine that date, look at the thresholds chart in or "10 Steps of Sales Tax" PDF. Each state is a little bit different when they start requiring you to collect taxes after you've crossed their threshold. You can get that here - ledgergurus.com/resources/downloads-2/10-steps-to-ensure-sales-tax-doesnt-burn-down-your-ecommerce-business/
Thanks...I just found your content today and found it very helpful. I am an Amazon FBA seller in Illinois and only sell on that platform. I did have a question about filing ST-1 and ST-2. Since Amazon is the marketplace facilitator and they are collecting and remitting tax for me I would still have to file ST-1 but it would show no sales and pretty much be all zero's?
hello I need help 1)We get the certificate directly without registration and give the copy to the wholesaler, is it true? 2) we need to make a statement every few months
I'm not completely sure what you're asking, but I'm going to guess. 1. You can't get a resale certificate without registering for a sales tax permit in that state because a resale certificate says that you are going to resell the item and charge sales tax to your customer, and then remit it to the state. But it it ILLEGAL to collect sales tax without registering for a permit first. Sales tax MUST be collected, whether by the supplier from you or by you from the end customer. You only need to register for a permit if you have physical presence (people or property) in the state and/or if you've passed the economic nexus threshold. Until that point, you will be charged sales tax by your supplier. 2. When you register for a permit, the state will tell you how often you must file a return and remit sales tax. For more information on all of this, download our 10 Steps of Sales Tax guide - ledgergurus.com/portfolio/10-steps-to-ensure-sales-tax-doesnt-burn-down-your-ecommerce-business/
@@SuperLocoloco69 We mostly work with ecommerce sales tax. If you have specific questions about in-state tax, try calling the state department of revenue to ask them. They'd be better equipped to answer you than we are.
We wanted to give you some general guidance on your IL filing. Since you only have one location, you should report ST-1 and ST-2 but only one location on ST-2. Let us know if you have any other questions.
Online some of the st-2 rates listed on the form don't match. For example, I looked up an address in Chicago at mytaxillinois & it said 10.25% but the Cook Co. entry in st-2 has it at 9%. What do you do when this happens?
I do have some more information for you. Chicago's city tax rate is 10.25% and Cook county's rate is 9%. So, one is the county rate (which is used when there no city rate can be applied) and the other is the city. So based on where the sale took place is how you'll know which rate to use.
We've included a bunch of California sales tax stuff in our sales tax course. We go through the entire process from start to finish for CA, as well as every other state. For more information about it, click here: ledgergurus.com/resources/sales-tax-masterclass/
We are a fba seller on Amazon and shopify. We have a 3rd party independent warehouse in 2 places in Illinois. We just got out business registration certificate and have my Illinois tax account which includes ST1 based on your video it seems as my registration is not correct. Thank you
And I know Amazon collects and remit the sales tax but shopify does not and is not considered a fba seller so we must report collect and remit the sales tax
Thanks for watching! Need help with sales tax? Learn more and reach out to us here - ledgergurus.com/services/sales-tax/
And for St2 do we have to do this for every customer ? I have been pulling my hair with everything they request here in Illinois
You can probably consolidate if multiple customers live in the same city/county. But yes it’s very burdensome!
Is this still accurate information in 2023? We're digging into this today and the ST-2 form looks different now (doesn't appear to require city by city detail, for example). In my view, the verbiage on line 6a and 7a seems to indicate that, "Sales from Outside IL" should be logged there and there is no reference to those rows on ST2. I can't imagine any small business would be expected to generate location to location info on every sale in IL during the year. Anyway, great video! This information is very hard to find and I'm sure pulling it together isn't easy. @@LedgerGurus
Here's what it says in the instructions:
Line 6a - General Merchandise Base
Enter the portion of Line 3 that you received from general merchandise you sold to users in Illinois, plus the amount you received from general merchandise you sold for use in Illinois in performing your service. Note: Remote retailers and marketplace facilitators cannot use Line 6a to report sales made to Illinois customers. Instead remote retailers and marketplace facilitators must use line 4a to reports these sales.
Here's the link to the instructions: tax.illinois.gov/content/dam/soi/en/web/tax/forms/sales/documents/sales/st-2-instr.pdf
Thank You. From Chicago.
You're very welcome!
Your video is amazing. I’m so glad you took the time to explain this. I felt the process was complicated but you definitely simplified it for me.
Wow! This is a lot to track but you've made the overarching understanding of it all so much easier! Thanks for sharing! Super helpful!
We're so glad to help. And thank you!
Can you go over how to fill out the Reg 1 form for Illinois
Hi! Which part do you need help with?
where do i put if the sales are for resale?
You should be able to report their resale sales on Schedule A, section 1 under the resale section.
Ok so I have my EIN , LLC and I just registered with a reg 1 form. Is there anything else that I need ? I’m trying to file for a seller permit but when I try it takes me back to form Reg 1. I’m so confused. Once my business is registered with the Reg 1 form do I still need to file for seller permit ?
What’s the Reg 1 form? Is that to register sales and use tax in Illinois?
So Question: Once a nexus is established.. do we have to pay back taxes? OR do we just start collecting then remit what we start collecting?
You don't have to pay back taxes. You just start collecting and then remit what you've collected. When you register for the sales tax permit, make sure to use the right start date. You want to use the date that you will start collecting taxes on. To determine that date, look at the thresholds chart in or "10 Steps of Sales Tax" PDF. Each state is a little bit different when they start requiring you to collect taxes after you've crossed their threshold. You can get that here - ledgergurus.com/resources/downloads-2/10-steps-to-ensure-sales-tax-doesnt-burn-down-your-ecommerce-business/
@@LedgerGurus Thank you so much!
@@nikoWhat You are so welcome! Glad to help!
Thanks...I just found your content today and found it very helpful. I am an Amazon FBA seller in Illinois and only sell on that platform. I did have a question about filing ST-1 and ST-2. Since Amazon is the marketplace facilitator and they are collecting and remitting tax for me I would still have to file ST-1 but it would show no sales and pretty much be all zero's?
You will still need to report sales amount and take the same as deduction ruclips.net/video/BlxgcWxPgt8/видео.html this video should help you!
hello I need help
1)We get the certificate directly without registration and give the copy to the wholesaler, is it true?
2) we need to make a statement every few months
I'm not completely sure what you're asking, but I'm going to guess.
1. You can't get a resale certificate without registering for a sales tax permit in that state because a resale certificate says that you are going to resell the item and charge sales tax to your customer, and then remit it to the state. But it it ILLEGAL to collect sales tax without registering for a permit first. Sales tax MUST be collected, whether by the supplier from you or by you from the end customer. You only need to register for a permit if you have physical presence (people or property) in the state and/or if you've passed the economic nexus threshold. Until that point, you will be charged sales tax by your supplier.
2. When you register for a permit, the state will tell you how often you must file a return and remit sales tax.
For more information on all of this, download our 10 Steps of Sales Tax guide - ledgergurus.com/portfolio/10-steps-to-ensure-sales-tax-doesnt-burn-down-your-ecommerce-business/
Hi, this video is great but can you do one for business inside of Illinois? and where are located?
I have a restaurant business and hopefully I am reporting it right.
@@SuperLocoloco69 We mostly work with ecommerce sales tax. If you have specific questions about in-state tax, try calling the state department of revenue to ask them. They'd be better equipped to answer you than we are.
We wanted to give you some general guidance on your IL filing. Since you only have one location, you should report ST-1 and ST-2 but only one location on ST-2. Let us know if you have any other questions.
Online some of the st-2 rates listed on the form don't match. For example, I looked up an address in Chicago at mytaxillinois & it said 10.25% but the Cook Co. entry in st-2 has it at 9%. What do you do when this happens?
That is a really good question for you to ask the IL Tax Department. I suggest you call them directly since they'll know better than we do.
I do have some more information for you. Chicago's city tax rate is 10.25% and Cook county's rate is 9%. So, one is the county rate (which is used when there no city rate can be applied) and the other is the city. So based on where the sale took place is how you'll know which rate to use.
Do you need to fill out ST 1 if your sale is all in amazon? Thank you so much. You have a good explanation!
Yes! But it’ll be very simple! Same amount for gross sales and exemptions to arrive at $0 taxable sale :)
Can you please do one for California?
We've included a bunch of California sales tax stuff in our sales tax course. We go through the entire process from start to finish for CA, as well as every other state. For more information about it, click here: ledgergurus.com/resources/sales-tax-masterclass/
We are planning on doing one for California!
@@LedgerGurus thank you!!
does Avalara do this for you automatically ? I can't imagine doing this for 300 plus sales manually.
Avalara and other sales tax software solutions all have the capacity to organize data into the correct format for IL.
@@LedgerGurus thanks
We are a fba seller on Amazon and shopify. We have a 3rd party independent warehouse in 2 places in Illinois. We just got out business registration certificate and have my Illinois tax account which includes ST1 based on your video it seems as my registration is not correct. Thank you
And I know Amazon collects and remit the sales tax but shopify does not and is not considered a fba seller so we must report collect and remit the sales tax
You are so welcome. We're glad to help!
Do you have any questions? We want to make sure we didn't miss anything.
Anyone from the south Chicago area that recommends a small business cpa?
Let us know if you find a good one! We will add it to our referral list!
can you inform me of how to get a resale certificate for illinois
You need to apply on IL’s Department of Revenue website and do a specific resale registration.