If you're starting a business in California that will sell tangible goods, taxable services, or both, and collect sales tax, you will need to obtain a seller's permit. A seller's permit is an official document issued by the California Department of Tax and Fee Administration (CDTFA) that allows you to legally collect and remit sales tax on your sales transactions.
Here are the steps to follow in order to obtain a seller's permit in California:
Determine if you need a permit: In California, a seller's permit is required for businesses that sell tangible goods, taxable services, or both, and collect sales tax.
Register online: You can register for a seller's permit online at the CDTFA website. The online application process is quick and convenient, allowing you to apply for your permit from the comfort of your own home or office.
Provide required information: During the online registration process, you will be asked to provide information about your business, such as its legal name, mailing address, and type of ownership. It's important to thoroughly review and accurately complete the application in order to minimize the risk of delay.
Pay any fees: There is no fee to obtain a seller's permit in California, but there may be fees associated with registering your business with the CDTFA. Make sure to review and understand any fees associated with the permit and registration process before submitting your application.
Wait for approval: Once you have completed the registration process and paid any fees, the CDTFA will process your application and issue a seller's permit if everything is in order. The process typically takes around 5-10 business days.
It's important to keep your seller's permit current and renew it annually if necessary. By following these simple steps, you can obtain a seller's permit and legally collect and remit sales tax on your sales transactions in California. Obtaining a seller's permit in California is a straightforward process that can be completed quickly and conveniently online. By thoroughly reviewing and accurately completing the application and paying any associated fees, you can ensure a smooth and efficient process and avoid any delays.
At Agency Oakland, we want to help small businesses build their infrastructure to grow a thriving business. If you have any questions you can visit the CDTFA website to sign up and learn more by clicking the button below!