What is a Seller’s Permit?
A seller’s permit, sometimes called a sales tax permit or sales and use tax permit, is a business license that allows you to collect sales tax on taxable goods and services. Your business is then responsible for sending the tax you’ve collected to your state taxing authority.
Why You Need a Seller’s Permit
Business owners who develop a new business and begin selling products need a seller’s permit to buy goods at wholesale prices and resell them with the intent to make a profit. The seller’s permit is a specific type of business license and allows you to sell products or services and collect sales tax.
How to Get a Seller’s Permit
To get a seller’s permit, fill out an application and submit it. Most jurisdictions have the forms on their websites and you can usually apply online. Some charge fees. Requirements may include: business name and address, ID number, estimated monthly sales, supplier names.
Who Needs a Seller’s Permit in California?
The website of the California Department of Tax and Fee Administration (CDTFA) outlines the basic rules concerning whether you need a California seller’s permit and how to get one. Generally speaking, any business that plans to sell or lease tangible personal property that would be taxable if sold at the retail level in California will need to obtain a seller’s permit.