A sales tax permit authorizes a business to make taxable retail sales and collect sales tax from customers.
Every state with a sales tax requires businesses to register for a sales tax permit before collecting and remitting sales and use tax in the state.
A business needs a sales tax license if the business establishes a sales tax nexus with a state. Nexus means having a significant presence in a state that triggers the requirement to collect sales tax. The specific requirements for nexus can vary from state to state.
A foreign business should register to collect and remit taxes on sales in each state where it has nexus.