California Seller’s Permit

Get a seller’s permit for $69. The seller’s permit is also called a resale license, wholesale license, or resale permit.

  • Required to Sell Goods in California
  • Avoid Paying Sales Tax on Wholesale Purchases
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When you sell or lease merchandise, vehicles, or other tangible personal property in California, even temporarily, you are generally required to obtain a seller's permit, and to pay sales tax on your taxable sales. Sometimes people incorrectly refer to a seller's permit as a resale number or resale permit. A seller's permit is a state license that allows you to sell items at the wholesale or retail level and to issue resale certificates to suppliers. Issuing a resale certificate allows you to buy items you will sell in your business operations without paying amounts for tax to your suppliers.

The process of starting a business in California can be complex. The best way to ensure that you are in compliance with all state requirements is to consult with our permit experts. LegalFilings can help you navigate the process of starting your business and can help you obtain the licenses and permits you need.

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Generally, if you make three or more sales in a 12-month period in California, you are required to hold a seller's permit. This applies even if your sales are made through Internet auction houses or websites that offer online classified advertisements (online advertisers).

When you have a garage sale and sell used items, you are generally not required to hold a seller's permit unless you have more than two garage sales in a 12-month period or are required to hold a seller's permit for being engaged in the business of selling merchandise, goods, or items (tangible personal property).

Making sales of merchandise, goods, or other items in California without first getting a seller's permit violates the law and subjects you to fines and penalties. California law requires a seller's permit to be held for warehouse locations when: the retailer has one or more sales offices in this state, the sale is negotiated out of state, and the order is filled from the retailer's in-state stock of goods at the warehouse. You are not required to hold a seller's permit if all your sales are made exclusively in interstate or foreign commerce, and you make no sales in this state. However, your business may be required to register for a use tax account.

When you hold a seller's permit, you must file sales and use tax returns and pay any sales or use tax due on your sales and purchases. You must report and pay sales tax on each taxable sale. When you make the sale, you may collect from your customer an amount equal to the tax you will owe. You also must keep adequate records that document your sales and purchases. As a registered seller, you will need to take the time to learn how to properly apply the sales and use tax law in your business operations. View the seller's permit compliance requirements here.

You should not obtain a seller's permit just to take advantage of the opportunity to issue resale certificates to your suppliers. Issuing a resale certificate to avoid paying tax on items you will use rather than sell is against the law and may result in fines and penalties.

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