Seller's Permit

 
Seller's Permit FAQ's
 

As a small business, new or long established, there are many things we are not aware of. One big one is the need for a seller's permit. Well guess what, we've got you covered! Below you will find some useful information on the most commonly asked questions regarding the need for a seller's permit.

 

Who must obtain a sellers permit?

  • You must obtain a seller's permit if you:

    1. Are engaged in business in California and

    2. Intend to sell or lease tangible personal property that would ordinarily be subject to sales tax if sold at retail.

 

The requirement to obtain a seller's permit applies to individuals as well as corporations, partnerships, and limited liability companies. Both wholesalers and retailers must apply for a permit. If you do not hold a seller's permit and will make sales during temporary periods, such as Christmas tree sales and rummage sales, you must apply for a temporary seller's permit. Such permits are normally issued to selling operations lasting no longer than 90 days at one location.

How do I apply for a seller's permit? 

  • The CDTFA has a secure, convenient, fast, and free way to register online for a permit. The system guides you through the process and will assist you with the types of permits you may need for your business.

If I apply for a permit, what information is needed? 

  • You will be asked to furnish the required information when registering for a permit.If you have a business partner, or if the business is managed by corporate officers or limited liability company managers, members or officers, those persons will also be asked to furnish some of the required information. 

*Common items requested but not limited to would be the following: 

  • FEIN (Federal Employer Identification Number i.e 99-9999999), if you do not have one, you may apply for one via the IRS website, spoiler...it's free!

  • Corporation; California Secretary of State Entity Number - This is your license number. If you do not have a business license, you may apply for one via the California Secretary of State website.

Do I need more than one permit? 

  • If you have more than one place of business (located on different premises), you may need a separate permit for each location. In some instances it is possible to obtain a consolidated permit for multiple business outlets. At the time you apply for a permit, be sure to provide information for all business locations so that the CDTFA will issue the correct type of permit.

Is there a fee charged for a sellers permit? 

  • No. However, the CDTFA may require a security deposit to cover any unpaid taxes that may be owed if, at a later date, the business closes. The amount of the security will be determined at the time you apply.

Is my seller's permit the same as a business license? 

  • No. You should contact your city and/or county business license department to obtain a separate business license. To locate the department, check the government pages of your telephone directory (for example, look for the terms license or business license under City Government Offices and County Government Offices).

I do hope you find this information helpful. If you need more information you may visit the below sites: