Resources
California seller’s permits: registration and bookkeeping setup
A seller’s permit is part of setting up taxable merchandise activity in California. Clarify the business activity and locations first, then organize the records needed for registration and ongoing reporting.
Last reviewed:
General information, not legal or tax advice.
Determine whether the sales activity needs a permit
CDTFA generally requires a permit when a business is engaged in California and intends to sell or lease tangible personal property ordinarily taxable at retail. Both wholesalers and retailers can need one. Review the actual activity rather than assuming that selling only to other businesses removes registration obligations.
Gather the information used in registration
CDTFA describes online or in-person registration and requests business, banking and identifying information. There is no permit charge, though a security deposit may be required. Collect the information securely and retain the registration confirmation with the business records.
Sources: CDTFA Publication 107, Applying for a Seller's Permit (Revision July 2024); CDTFA - Obtaining a Seller's Permit (FAQ)
Distinguish temporary sales and additional locations
CDTFA calls for a temporary permit for planned sales in one location lasting 90 days or less. Separate locations may need separate permits, with consolidation possible in some cases. Confirm the planned outlets and duration before registering, and keep the seller’s permit distinct from local business licensing.
Sources: CDTFA - Permits & Licenses; Publication 107; CDTFA - Obtaining a Seller's Permit (FAQ)
Prepare for returns after the account opens
Permit holders must file returns, pay tax due, keep records and display the permit. CDTFA also requires notice when the business is sold or closed. Establish responsibility for sales reports, purchase records and account correspondence so registration leads into a usable filing workflow.
Sources: CDTFA Publication 107, Applying for a Seller's Permit (Revision July 2024)
Sources: determine whether the sales activity needs a permit
Set up records for a new permit
Tidwell helps reconcile sales and purchase records and supports sales tax filing within an agreed scope. Bring your account instructions and the questions you need to review with your CPA.