Those planning to do business in California may wonder whether or not they’ll need a CA seller’s permit or another license. Some types of businesses do require a permit to conduct business legally, but not all of them need one. Here’s what you need to know about having a business in the state of California.
Seller’s Permit vs. Resale Permit
You may have heard the terms “seller’s permit” and “resale permit” being used interchangeably when the subject of business ownership arises. These two items are not one and the same; a seller’s permit, also known as a wholesale license, is issued by the state and is a license that allows items to be sold at the retail or wholesale level in the state of California
A resale permit or certificate, on the other hand, is a form that a buyer provides to a seller to exempt the resale of an item from taxes.
Businesses That Need to Have a Seller’s Permit
Generally speaking, any business that plans to sell or lease tangible personal property that would be taxable if sold at the retail level in California will need to obtain a seller’s permit. Tangible personal property is defined as any physically movable property or rental property that is used in the course of business operations.
Any business that makes three or more sales in a single year is required to obtain a seller’s permit, regardless if they are an individual, partnership, or another business entity. Items sold by these businesses can include car dealerships, jewelry stores, businesses selling sports goods, furniture and clothing businesses, and many more. As well, a business’s sales can occur online or off and still require a seller’s permit.
Businesses That Don’t Need to Have a Seller’s Permit
There are many instances when a business may not require a seller’s permit. If a business only plans to be open for 30 days or less, they won’t require a seller’s permit, but a temporary one. The same is true of seasonal businesses such as Christmas tree sellers.
How to Get a Seller’s Permit in California
The first step to getting a seller’s permit is to complete the application form. The form can be obtained from the Board of Equalization office that’s closest to you. You can also visit one of these offices to register in person or request to have the application mailed to you. Once complete, the application should be sent to a Board of Equalization field office for processing.
You may not wish to wait in line at a field office to obtain and complete an application or have time to wait for it to arrive in the mail. Where this is the case, there is a far faster solution.
Going online to get your California seller’s permit offers many benefits, as long as you choose a company with experience. FastFilings has helped more California businesses file their seller’s permits than any other company. Visit us online to apply for your permit today.