How to Get a California Seller’s Permit: Steps, Costs, and Filing

To get a California seller’s permit, register with the California Department of Tax and Fee Administration (CDTFA) before your first taxable sale. The permit is free, most people apply online in a single sitting, and the CDTFA can sometimes issue it the same day.¹

Do You Actually Need One

If you’re doing business in California and you plan to sell or lease tangible personal property that would normally be subject to sales tax, you need a seller’s permit. That applies to individuals, partnerships, corporations, and LLCs alike, whether you’re running a storefront, selling online to California buyers, or working a booth at a farmers market.²

Short-term selling counts too. A temporary seller’s permit covers operations lasting 90 days or less at one location, which is the route for seasonal Christmas tree lots, rummage sales, and similar setups. Swap meet and flea market operators may ask to see proof of a valid permit before renting you space.²

Out-of-State Sellers

If your business is located outside California but ships tangible goods to California buyers, register once your total combined sales delivered into the state exceed $500,000 in the current or preceding calendar year. That threshold includes sales by related entities, not just your business alone.³

Selling Only Through a Marketplace

If your only sales channel is a marketplace like Amazon, eBay, or Etsy, the marketplace facilitator is generally treated as the retailer for California sales tax purposes and handles collection and remittance on your behalf.⁴ Getting your own permit still makes sense if you also sell through your own website, at craft fairs, or anywhere the marketplace doesn’t control, and holding one lets you use resale certificates to buy inventory tax-free.

What It Costs

The permit itself is free. There is no application fee and no renewal charge.¹

The CDTFA can require a security deposit before issuing your permit, though. This isn’t a fee you lose; it’s held as a guarantee that you’ll pay your sales tax obligations. The minimum is $2,000 and the statutory maximum is $50,000. For quarterly filers, it’s calculated at up to twice your estimated average quarterly tax liability; for monthly filers, up to three times the estimated monthly liability. If the calculated amount comes out below $2,000, no deposit is required.⁵ A deposit is more likely if you or an owner has previously had a permit revoked or a history of nonpayment.

What to Gather Before You Apply

Pull everything together before you start. The online system doesn’t save partial progress well, and hunting for documents mid-application is a slow way to spend an afternoon. You’ll want:

Business details: legal name, any fictitious business name (DBA), physical and mailing addresses, entity type, and the date you started or plan to start selling.
Sales estimates: expected monthly sales and the portion you expect to be taxable.
Owner and officer information: full legal names, Social Security Numbers or Employer Identification Numbers, driver’s license numbers, home addresses, and phone numbers for all owners, partners, or corporate officers.
Financial information: your bank’s name and location, plus details about your main suppliers.
Prior permit history: if you or any owner previously held a seller’s permit or other CDTFA account, have those details ready.

If your business has employees or operates as a partnership, corporation, or LLC, you’ll also need a federal Employer Identification Number. The IRS issues an EIN free through Form SS-4, which you can file online, by phone, or by mail.⁶ Sole proprietors without employees can use their Social Security Number.

How to Apply

The fastest route is online through the CDTFA website. Create an account (or log into an existing one), then select “Register a New Business Activity” and choose the seller’s permit option.¹ The system walks you through screens for the business, owner, and financial information listed above. Review everything carefully before submitting. Errors in owner details or entity type can delay processing.

You can also apply at any CDTFA field office. Bring the full documentation set. In-person applications have the advantage of getting questions answered on the spot, and the CDTFA may be able to issue your permit the same day.¹

Online applications are often processed quickly, though some take up to two weeks if the CDTFA needs to verify information or request a security deposit. Your permit arrives electronically or by mail.

Once You Have the Permit

Display the permit prominently at your place of business. If you sell at multiple locations, each one needs its own permit. Online-only sellers should keep the permit with their business records so it’s accessible if the CDTFA asks for it.⁷

Filing Returns

The CDTFA assigns your filing frequency when you register. Most new businesses start on a quarterly schedule. Higher-volume businesses may be assigned monthly or quarterly prepayment filing (the threshold for quarterly prepayment is generally around $17,000 or more in monthly taxable sales), and very low-volume sellers may qualify for annual filing.⁸ File a return for every period even if you made no sales. A zero-dollar return is still required.

Buying Inventory Tax-Free

A practical benefit of holding a permit is buying merchandise for resale without paying sales tax up front. You do this by giving your supplier a resale certificate that includes your name and address, your seller’s permit number, a description of the property, a statement that the goods are purchased for resale, the date, and your signature.⁹

Only use a resale certificate for items you genuinely plan to resell. Using one to dodge tax on personal-use goods is a misdemeanor, and you’ll owe the unpaid tax plus a penalty of 10% of that tax or $500, whichever is greater, on each improper purchase.¹⁰ If you buy something on a resale certificate and later keep it for business or personal use, report and pay use tax on that item.

Use Tax on Business Purchases

When you buy equipment, supplies, or other items from an out-of-state seller that doesn’t charge California tax, you owe use tax. Permit holders report and pay use tax directly to the CDTFA on their regular sales tax returns rather than on an income tax return.¹¹ This catches new owners off guard. Office furniture ordered from an online retailer with no California presence still carries a tax obligation.

Records

Keep sales records, purchase invoices, resale certificates you’ve issued or received, and bank statements for at least four years. The CDTFA can audit back that far, and you’ll need the paperwork to support your returns. If you’re being audited or contesting an assessment, hold onto everything related to the dispute until it’s fully resolved.¹²

What Happens If You Skip Registration

Operating as a seller in California without a valid permit is a misdemeanor. A court can impose a fine of up to $5,000, jail time of up to one year, or both, and you remain liable for all unpaid taxes, interest, and additional penalties the CDTFA assesses.¹³ Late returns and late payments carry 10% penalties as well, so keeping the account current matters once you’re registered.¹⁴

Closing the Permit Later

If you stop selling or the business closes, don’t leave the permit open. An active permit means the CDTFA expects returns every filing period, and missed returns trigger penalties even when you owe nothing. Close the account online through your CDTFA login, or complete Form CDTFA-65 (Notice of Close-Out) and return it with your permit to a local field office. File a final return covering the period through your last day of business and pay any remaining tax before closing.⁷

Changing your business structure counts as a new business for permit purposes. If you convert from a sole proprietorship to an LLC, for example, close the existing permit and apply for a new one under the new entity.

1
California Department of Tax and Fee Administration. Applying for a Seller’s Permit (Publication 107)
2
California Department of Tax and Fee Administration. Obtaining a Seller’s Permit
3
California Department of Tax and Fee Administration. Use Tax Collection Requirements Based on Sales into California
4
California Department of Tax and Fee Administration. Sales and Use Tax Law – Chapter 1.7
5
California Department of Tax and Fee Administration. Compliance Manual Chapter 4
6
Internal Revenue Service. Get an Employer Identification Number
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California Department of Tax and Fee Administration. Permits and Licenses
8
California Department of Tax and Fee Administration. Doing Business in California – Tax and Fee Rates and Filing Frequencies (Publication 51)
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California Tax Service Center. Resale Certificates
10
California Department of Tax and Fee Administration. Sales and Use Tax Law – Section 6094.5
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California Department of Tax and Fee Administration. California Use Tax for Business Use
12
California Department of Tax and Fee Administration. Retaining Records – Sales and Use Tax Records
13
California Department of Tax and Fee Administration. Operating Without a Valid Seller’s Permit – Criminal Citation (Publication 166)
14
California Department of Tax and Fee Administration. Trouble Paying Taxes?