Indiana Registered Retail Merchant’s Certificate Compliance

The Indiana Department of Revenue requires any business that conducts sales (retail or wholesale) within the state of Indiana be registered by obtaining a Registered Retail Merchant’s Certificate (RRMC). A business tax application (BT-1) is filed along with a $25 registration fee. There are several items of taxpayer information that will be needed to complete the BT-1.

If the business will have employees, is a Corporation, LLC, or Partnership you will need to have a Federal Identification Number. You will provide the Entity name and DBA (Doing Business As) if applicable. A mailing and physical location address will be entered as well as the county and township where the business is located. If you are incorporated, you will need the state of incorporation, the date incorporated, and the commercial domicile. You will be asked for a North American Industry Classification System (NAICS) code. This is a code that tells what type of business the entity is conducting. There is a list of codes attached to the application.

Owners, partners, or officers will have to be listed on the application. Required entries are social security number, name, title, and home address. This is an area that can cause problems. An officer or partner must be compliant and in good standing with the Indiana Department of Revenue. If you or your partner have not filed prior year tax returns or you owe money from prior years tax returns, your application will be denied. The biggest problem that Tax Matters Solutions encounters is a business that is open or almost open and the RRMC is denied. The owners have invested capital and cannot open. We can help with this situation.

There is an entry required that is an estimation of monthly taxable sales. This number is used to determine the filing frequency of the sales tax return (ST-103). You could be a monthly, quarterly, or annual filer. It is required that an owner, officer, partner, or resident agent sign the return. If you are registering more than one business, or are going to have multiple locations, you will need to file a separate BT-1 for each business/location. You can fill out a paper application online at BT-1 Paper Application . It can then be printed and mailed to the address on the BT-1 or taken to a District Office. If you prefer to file the BT-1 online you may do this at BT-1 Online Application. A credit card is required for the $25 application fee.

Before the passage of Senate Enrolled Act (SEA)362, RRMCs were good for the life of the business. With the passage of SEA 362, RRMCs must be renewed every two years. If businesses are current in filing and paying their sales tax returns, the RRMC will be automatically renewed at no cost to the business. Even if all sales tax returns are filed, the outstanding liabilities must be paid, or a payment plan must be established with the Department of Revenue, before the RRMC will be renewed. Delinquent businesses that have had their RRMC revoked need to pay all outstanding liabilities, and pay a $25 renewal fee, to receive a renewed RRMC. Businesses that continue to conduct business without a valid RRMC are subject to a Class B Misdemeanor punishable by imprisonment and/or fines.

Tax Matters Solutions, LLC specializes in helping small business owners retain their Registered Retail Merchant’s Certificate. We have helped many clients prepare, file and setup payment plans in order for the business to become and stay compliant. A compliant business is allowed to renew the RRMC. If you are delinquent or need forms filed call us early, often these cases are larger than the business owners realize. Early intervention can save a business.