How to Get a Seller's Permit in California

A California seller’s permit is the registration you need from the California Department of Tax and Fee Administration (CDTFA) before you sell or lease goods that are normally subject to sales tax. The CDTFA does not charge for a seller’s permit, you can apply online at cdtfa.ca.gov, and once it is issued you are responsible for collecting sales tax and filing returns on the schedule the CDTFA gives you.

Who needs a seller’s permit in California?

You need a seller’s permit in California if you are engaged in business selling or leasing tangible personal property that would ordinarily be taxable when sold at retail. That covers more businesses than people expect:

• Retail stores, salons that sell products, and restaurants, cafes and food trucks.
• Online sellers shipping from California, including sellers on marketplaces.
• Wholesalers. The CDTFA states that both wholesalers and retailers must apply for a permit, even if every sale is for resale.
• Pop-up and seasonal sellers, who apply for a temporary seller’s permit. The CDTFA issues these for selling operations that normally last no longer than 90 days at one location.

You generally do not need one if your only sales are occasional, which the CDTFA describes as no more than two sales in a 12-month period, or if you sell only services that are not taxable.

Is a California resale license the same as a seller’s permit?

Yes. California does not issue a separate “resale license” or “wholesale license” for sales tax. The seller’s permit is what lets you sell at wholesale or retail, and it is also what lets you buy inventory without paying tax to your supplier. You do that by giving the supplier a resale certificate (CDTFA form 230 is the standard version) that carries your seller’s permit number. A resale certificate is only for goods you intend to resell. The CDTFA warns that issuing one for items you do not plan to resell is a misdemeanor.

How much does a seller’s permit cost in California?

A seller’s permit in California is free. The CDTFA may, however, ask for a security deposit to cover sales tax you might not pay later. Whether one is required, and how much, depends on your type of business and your expected taxable sales, and the CDTFA sets the amount when you apply. Ask about it before you open, so a deposit request does not catch your cash flow by surprise.

How to apply for a seller’s permit in California

1. Gather your detailsYour Social Security number, date of birth and driver’s license or state ID; your business entity details if you have an LLC or corporation; bank and supplier names; and your expected monthly sales and how much of it is taxable.
2. Register onlineOn cdtfa.ca.gov, choose to register a new business activity and select the seller’s permit. You can also apply in person at a CDTFA office.
3. List every locationIf you sell from more than one place of business, you may need a separate permit for each one. Give the CDTFA every location when you apply so it issues the right type of permit.
4. Note your filing frequencyWhen the permit is issued, the CDTFA assigns how often you file: monthly, quarterly, quarterly with prepayments, or annually. Put the due dates in your calendar that day.

What happens after you get your seller’s permit?

The permit is the easy part. From the first sale, you have ongoing duties:

• FreeThe CDTFA does not charge to issue a seller’s permit, though it may ask for a security deposit.
• OnlineApply through the CDTFA’s online registration, or in person at a CDTFA office.
• 90 daysTemporary permits cover short selling operations at one location.
• Your scheduleThe CDTFA assigns a monthly, quarterly, prepayment or annual filing basis.

Want us to set it up and file your sales tax returns?

Many Orange County owners apply on their own and are fine. Others would rather not guess at the taxable portion of their sales or worry about a due date. We can register the seller’s permit with you, confirm your locations and filing frequency, and then take over the returns through our sales tax filing service, with figures pulled from your monthly bookkeeping so the return matches your books. If you are still forming the business, our tax planning helps you start on the right footing.