What is a Seller's Permit?

A seller’s permit is an official document that authorizes businesses to sell tangible goods. Individuals or entities selling items at retail or wholesale levels are typically required to obtain a seller’s permit from their respective state before commencing business operations. This permit allows the business to collect sales tax from customers, which is then remitted to the state.

The specific requirements and processes for obtaining a seller’s permit can vary by state, so it’s important to consult your state’s tax authority for detailed information.

What Is a Reseller’s Permit?

The terms reseller’s permit or reseller permit often refer to a document that allows businesses to purchase goods for resale without paying sales tax. While some states, like Washington, use “reseller permit” as an official term, others use different terminology.

For example, in Washington, a reseller permit is issued by the state and exempts purchases intended for resale from sales tax. In California, a similar function is served by a resale certificate, which businesses provide to suppliers to claim a tax exemption. However, a resale certificate is not the same as a seller’s permit, which authorizes businesses to sell taxable goods and collect sales tax.

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Is a Seller's Permit the Same Thing as a Resale License?

No. People often use the terms interchangeably, but a seller’s permit is different from a resale certificate (sometimes called a resale license).

A seller’s permit allows you to sell taxable goods or services to consumers and requires you to collect and remit sales tax to the state.
A resale certificate allows you to purchase items intended for resale in bulk without paying sales tax to the state at the time of purchase.

Do You Need a Seller’s Permit in California?

If you sell or lease tangible personal property that is subject to sales tax, including vehicles or merchandise, you are required to obtain a seller’s permit from the California Department of Tax and Fee Administration (CDTFA). This requirement applies whether your sales are permanent or temporary. For example, even if you only sell goods at seasonal events, such as holiday markets or craft fairs, you will likely need a temporary seller’s permit.

The need for a seller’s permit is based on whether you are engaged in business in California and are selling or leasing goods that would normally be subject to sales tax if they were sold at retail. Be sure to apply for a seller’s permit before conducting sales to comply with California’s tax laws.

Do You Need a Seller’s Permit to Sell Online in California?

Yes. If your business is based in California and you are selling tangible personal property online to customers in the state, you are required to obtain a California seller’s permit. The key factor is whether you are engaged in selling goods subject to California sales tax.

Do You Need a Seller’s Permit for a Garage Sale in California?

In California, if you conduct more than two garage sales within a 12-month period, you are generally considered to be engaged in a business activity and are required to obtain a seller’s permit. This permit allows you to collect and remit sales tax on your sales.

However, if you hold only one or two garage sales in a 12-month period to sell used items from your household, you are typically not required to obtain a seller’s permit. These occasional sales are generally not considered a business activity.

It’s important to note that local regulations may vary. For example, some cities may require a separate garage sale permit regardless of the number of sales conducted. Always check with your local city or county government to ensure compliance with all applicable laws and regulations.

Where Do You Get a Seller’s Permit in California?

To obtain a seller’s permit in California, you can apply directly through the CDTFA’s online registration system. Alternatively, platforms like FastFilings offer streamlined online services to assist you in obtaining a seller’s permit. These services can simplify the process, especially if you’re unfamiliar with the requirements.

When deciding where to get a seller’s permit, consider factors such as processing time, ease of use, and any associated fees.

What Are the Requirements to Get a Seller's Permit in California?

When applying for a California seller’s permit, you will need to provide the following information:

Personal Identification
- Social Security number (not required for corporate officers)
- Date of birth
- Valid identification (e.g., driver’s license, state ID, passport, or military ID)
Business Information
- Business name and address
- Type of business entity (e.g., sole proprietorship, partnership, corporation, LLC)
- Federal Employer Identification Number (FEIN) for corporations and LLCs
- Incorporation date and corporate number for corporations and LLCs
Contact Information
- Email address
Financial Information
- Bank name and location
- Names and addresses of suppliers
- Name of the person maintaining the account
Additional Information
- Personal references
- Projected average monthly sales and the amount of those sales that are taxable

Providing accurate and complete information will facilitate the processing of your application.

How Do You Obtain a California Seller’s Permit?

If you’re wondering how to get a seller’s permit in California, there are a couple of ways to complete the process. You can apply through the online seller’s permit system offered by the CDTFA.

Alternatively, you can use a trusted third-party online service like FastFilings to streamline the process and handle all communication with the CDTFA on your behalf. Start the process of getting a seller’s permit in California today!

Apply for a California Seller Permit!

Need help applying for a seller's permit in California?

Get Started!