Illinois Seller’s Permit: How to Get a Sales Tax Permit & License

Do you currently own a business in the state of Illinois? If you don’t have one already, you’ll likely need an Illinois seller’s permit. A seller's permit is also known as a resale or sales tax permit, and it gives you legal permission to collect sales tax from customers on taxable goods and services.

It’s sort of like the state's way of making sure sales tax is tracked and paid correctly. Without one, you could run into compliance issues, fines or delays when launching your business. Applying for a seller’s permit in Illinois is relatively straightforward and can often be done online through the Illinois Department of Revenue.

So let’s take a look at this essential step for most retailers, wholesalers and service providers, so you can operate your business legally and have peace of mind knowing you're compliant.

How do I get a seller’s license in Illinois? (Step by Step)

The process of applying for a seller's permit is more straightforward than you might think, and once you’ve applied, you typically get your permit within a few business days.

Step 1: Register with the Illinois Department of Revenue

To start, you must register your business with the Illinois Department of Revenue by filing a Certificate of Registration (Form REG-1).¹ Once approved, this provides your Illinois seller’s permit, also known as a Sales tax permit or Sales tax license. The registration process requires basic details like your business name, addresses, ownership structure and the products or services you plan to sell.¹

Step 2: Apply for a Resale Certificate if Needed

If your business involves buying goods to resell, you should also complete a resale certificate (Form CRT-61).² This form allows you to purchase items from wholesalers tax-free since sales tax will be collected from your customers instead. This step is especially important for retailers and e-commerce sellers. It’s a quick process and helps you maintain compliance while keeping costs lower for your business.²

Step 3: File Online and Avoid Fees

The application for your Illinois Seller’s Permit is completed online through MyTaxIllinois. Processing is usually quick, so it’s pretty easy for new business owners to get started. The state also does not charge an application fee, so it’s not only easy to apply, but it’s also completely free.⁴

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Do I need a permit to sell products in Illinois?

Yes, you do. Virtually all businesses selling taxable goods or services must obtain an Illinois Seller’s Permit, also known as a sales tax permit or sales tax license.¹ Having an Illinois seller’s permit is essential because it legally authorizes your business to collect and remit sales tax on taxable goods and services.¹ If you choose to operate a business without it, you risk fines, back taxes or even being barred from operating. It also allows you to buy products tax-free for resale through a resale certificate, which will help you save money in the long run.²

Is a vendor’s license the same as a seller’s permit?

A common point of confusion is whether a vendor’s license is the same as a sales tax license or an Illinois seller’s permit. The short answer is no. A sales tax permit, sometimes referred to as a sales tax license, is issued by the state and allows your business to collect and remit sales tax on taxable goods or services.¹ This is required no matter where in Illinois you operate, whether online or in person.

However, a vendor’s license is usually a type of local business license issued by your city, county or event organizer.¹ An example of this would be, if you plan to sell at farmers’ markets, street fairs or local festivals, you’ll often need a vendor’s license in addition to your state-issued seller’s permit.³ So while both are required for many businesses, they are not interchangeable. Here’s a table with a more comprehensive comparison of both:

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Final Thoughts

Getting an Illinois seller’s permit is one of the most important first steps for anyone planning to sell goods or taxable services in the state. The application process is straightforward through MyTaxIllinois, and the best part is that the Illinois seller’s permit cost is free.⁴ Though, as an entrepreneur, you should still budget for additional local or industry-specific requirements, such as a business license or vendor’s license, which often come with fees.³ So with that being said, securing a seller's permit is easy and pretty straightforward forward which makes staying compliant very easy.

FAQs

Do online sellers need an Illinois Seller’s Permit?

Absolutely. Online businesses are treated the same as brick-and-mortar shops when it comes to sales tax.² Any seller shipping goods to Illinois customers must collect and remit sales tax if they meet the threshold for economic nexus, which applies even to out-of-state sellers.¹ To do this legally, you will still need an Illinois seller’s permit or sales tax license.³ E-commerce platforms don’t cover this for you; it’s your responsibility as the seller.

How often do I file sales tax with an Illinois Seller’s Permit?

When you obtain a sales tax permit or Illinois seller’s permit, you’re also committing to regular tax filings. The Illinois Department of Revenue sets your filing frequency, monthly, quarterly or annually, based on your expected sales volume.¹ For new businesses, monthly filing is often required at first. Filing deadlines are strict, and late payments may result in fines or penalties.² Even if you didn’t make sales during a period, you’re still required to file a “zero return.”³

Sources:

1. How to Get a Wholesale License in Illinois | FastFilings
2. Illinois Business Tax Number | Tax-ID Bureau
3. Illinois Business License | Mosey
4. Seller’s Permit Illinois | StarterStory