You must obtain a seller's permit if you:

• Are engaged in business in California and
• 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.

You are engaged in business in California if you:

• Have an office, sales room, warehouse, or other place of business in this state (even if the location is only temporary).
• Have a sales representative, agent, or canvasser operating in this state.
• Receive rental payments from the lease of tangible personal property in this state.

You can apply for a permit via the CDTFA secure, convenient, and fast online system. Generally, you will need the following information to complete the application:

• Driver License
• Social Security Number (SSN)
• Email Address
• Supplier Name/Address
• Bookkeeper/Accountant Address and Phone Number (if applicable)
• FEIN (Partnership, Association, Organization, Trust, Estate, Joint Venture, Receivership/Fiduciary, Unincorporated Business Organization, Corporation, Limited Liability Partnership, Limited Partnership, Limited Liability Corporation)
• California Secretary of State Entity Number (Corporation, Limited Liability Partnership, Limited Partnership, Limited Liability Corporation)
• Officer, Member, or Partner Information (date of birth, SSN, or driver license and address)
• Agency Name (Federal, State, and Local Government)
• Contact information of the person(s) who maintains the books and records (name, address and phone number)
• Projected monthly sales
• Projected monthly taxable sales
• Products to be sold

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.

When purchasing items for resale, registered sellers may avoid the sales tax by giving their supplier adequate documentation in the form of a resale certificate. You must obtain a seller’s permit in order to complete the resale certificates.

See also:
Corporation VS. LLC Taxes in California