Before you can legally collect sales tax from customers in a state, your business must be registered with that state's tax authority. This registration grants you a permit to collect tax on the state's behalf. Navigating this process is a critical step in remaining compliant as your business grows. Dappr provides tools to help you manage this process, whether you need to register for the first time or simply want to log an existing registration in our system.
This guide explains the concept of sales tax nexus, how to add and manage your state sales tax registrations in Dappr, and how to handle registrations for other types of taxes, such as industry-specific excise taxes.
Viewing your tax registrations and monitored states
The main tax dashboard gives you a complete overview of your sales tax compliance status across the country.
From the main menu, navigate to Sales.
Select Taxes from the top menu.
The Registrations and monitoring tab is displayed by default. This page is split into two key sections:
Existing state registrations: This is a list of all the states where your business is currently registered and authorized to collect sales tax. For each registration, you can see the amount of tax you've collected that is awaiting payment ("Owed for remittance") to the state.
States currently being monitored: This is your watchlist of states where you have business activity but may not yet be required to register. For users on the Pro plan with nexus monitoring, Dappr automatically tracks your sales volume and transaction counts in these states against their specific economic nexus thresholds.
Adding a state to monitor
To begin the process for a new state where you anticipate doing business, you should first add it to your monitoring list.
Click the Add a state button in the top-right corner.
Select the state from the dropdown menu.
You will be asked a few questions to help determine if you have physical nexus in that state. Physical nexus is a connection to a state created by having a physical presence. This can include obvious things like an office or warehouse, but also less obvious connections like having a remote employee, storing inventory in a third-party logistics (3PL) facility, or even attending a trade show.
Once you answer the questions, Dappr will validate your information and add the state to your monitoring list.
Registering to collect sales tax
Once a state is on your monitoring list (either because you added it or because Dappr's nexus monitoring placed it there), you can proceed with registration when you have an obligation to do so.
Find the state in the "States currently being monitored" list and click the Review button.
A pop-up will appear, giving you two options:
Register now: Use Dappr's service to have us handle the registration paperwork with the state for you.
I'm already registered: Add the details of a registration you completed on your own.
Using Dappr's registration service
If you choose to have Dappr manage your registration, we will handle the complex, state-specific forms and submission process for a one-time fee of $99. This saves you significant time and reduces the risk of errors.
Click Register now.
You will be guided through an onboarding form where you will provide key information required by the state, including:
The date you began doing business in the state. This is critical as it determines your first filing period.
Your expected average monthly sales in the state.
A description of the products or services you sell.
You will also have the option to engage Dappr to handle your ongoing sales tax filings and remittances for that state, which automates the entire compliance lifecycle.
Finally, you will be asked to review the terms and proceed to payment to complete the request.
Adding an existing registration
If you have already registered directly with the state, you can add your registration details to Dappr. This is essential for enabling Dappr's automatic tax calculation features and for keeping all your compliance documents in one place.
In the review pop-up, click I'm already registered.
Fill in the form with your registration details, including the official name of the tax authority, your registration number or permit ID, and the date your registration became effective.
It is highly recommended that you upload a copy of your registration documents (e.g., your sales tax permit) to create a complete, audit-ready digital archive.
Click Save manual registration.
Once the registration process is complete, the state will move to the "Existing state registrations" list. Dappr's automatic tax calculation feature will now be active for sales to customers in that state. If you've engaged Dappr for filing and remittance, a tax reserve account may be created to set aside the funds you collect, ensuring they are ready for payment to the state.
Manual registrations
Some industries are subject to special taxes (like excise taxes on certain goods, hospitality fees, or telecom taxes) that are not collected by the main state sales tax authority. You can add these as manual registrations to track your obligations.
From the Taxes page, click on the Manual remittance tab.
Click Add manual registration.
Fill out the form with the specific authority's name and your registration details.
This will create a record for the registration, allowing you to manually add tax rates and track remittances for that specific authority, separate from your standard state sales tax.