When do California sellers need a seller's permit?

A seller's permit allows California sellers to purchase merchandise tax-free and then legally resell to customers within the state, thus granting the opportunity to do business there.

Typically, these certificates apply to the sale of tangible goods, such as toys, equipment, tools, and supplies, the majority of which sellers purchase wholesale. When a customer purchases an item, you collect sales tax on it.   

Not everyone doing business in California will require a seller's permit. Those who intend to sell property that should be taxed at retail must obtain a resale license. This applies to both wholesalers and retailers. Those who plan on doing business for 30 days or fewer will need a temporary permit. Seasonal businesses like Christmas tree sales usually only require a temporary permit. 

Individuals, partnerships, corporations, organizations, and LLCs can acquire a seller's permit. Note that seller's permits differ from resale certificates, which sellers may issue to their suppliers. Permit holders must report and pay sales and use tax and keep adequate records, as well as notify the State Board of Equalization of any major changes that occur within the business, such as selling or discontinuing operation. 

The quickest way to obtain a seller's permit in California is to register online. The California Department of Tax and Fee Administration provides more details.

Information about sales tax permits in all states can be found at Sales tax permits: A state-by-state guide.

It's important to get any necessary sales tax permits before making sales in any state with a sales tax. Avalara State Sales Tax Registration can help with that process.