To get a resale number in California online, register for a Seller’s Permit through the California Department of Tax and Fee Administration (CDTFA) using its electronic registration system (eReg). The permit is free, and most applicants receive their permit number — which is the resale number suppliers ask for — immediately after submitting the application.1California Department of Tax and Fee Administration. Obtaining a Seller’s Permit Once you have the number, you give suppliers a completed California Resale Certificate so you can buy inventory without paying sales tax, and collect that tax from your customers instead.
California doesn’t issue a separate “resale number.” The Seller’s Permit number is what you’ll write on resale certificates and what suppliers verify.
What to Have Ready Before You Start
The online application won’t let you save a half-finished form and return later, so gather everything first.2California Department of Tax and Fee Administration. Applying for a Seller’s Permit (Publication 107)
- Your Social Security Number or ITIN, and your California driver’s license or state ID number.
- A Federal Employer Identification Number (FEIN) if you’re applying as a corporation, partnership, or LLC. Sole proprietors without employees can use an SSN.
- Business name, physical address, mailing address, phone, and email.
- Names, addresses, and ID numbers for all partners or corporate officers if there’s more than one owner.
- Names of your suppliers. The CDTFA may verify these to confirm your resale claims.
- Estimated monthly sales. This figure determines whether you’ll file sales tax returns monthly, quarterly, or annually.3California Department of Tax and Fee Administration. Filing Dates for Sales and Use Tax Returns
- Business bank account information.
Most first-time applicants won’t owe a security deposit. The CDTFA generally requires one only for high-risk applicants, such as those with missed filings, unpaid liabilities, or a previously revoked permit.4California Department of Tax and Fee Administration. Sales and Use Tax Law – Section 6701
How to Register Online with the CDTFA
Go to the CDTFA website and select “Register Online” to open the eReg system. Choose “Register a New Business Activity” and follow the screens covering your identity, business structure, location, products, suppliers, and estimated sales.2California Department of Tax and Fee Administration. Applying for a Seller’s Permit (Publication 107)
A few points where applicants slip up:
- You need a separate permit for each physical location where you sell. The form lets you add locations, but each one gets its own permit number.
- Be specific when describing what you sell. “Clothing” is better than “general merchandise” because it helps the CDTFA categorize your account correctly.
- Don’t inflate or lowball your estimated monthly taxable sales. Changing the filing frequency later takes extra paperwork.
Before submitting, the system shows a summary of every field you entered. Review it carefully, because fixing a typo in your FEIN or address after submission means contacting the CDTFA and waiting for a correction. When you’re satisfied, click the final authorization button.
Getting Your Permit Number
Most online applications process instantly. If nothing gets flagged, you’ll see your Seller’s Permit number right away along with a digital permit you can download and print. Display the permit at your place of business — this is a legal requirement.
Applications that need manual review, usually because of mismatched identity information or a security deposit requirement, can take several business days. You can also register in person at any CDTFA field office, though online is faster for straightforward applications. There is no application fee; the permit itself is free.1California Department of Tax and Fee Administration. Obtaining a Seller’s Permit
Once your account is open, you’ll need to file sales and use tax returns on the schedule the CDTFA assigns. Even in periods with no sales, you have to file a zero return. Skipped filings lead to penalties and estimated assessments.
Using Your Number to Buy Inventory Tax-Free
Your permit number alone doesn’t get you tax-free purchases. For each vendor, you give the supplier a completed California Resale Certificate (form CDTFA-230).5California Department of Tax and Fee Administration. California Resale Certificate CDTFA-230 The form is one page and takes about two minutes.
You’ll need to include:
- Your Seller’s Permit number
- A description of what your business sells
- The vendor’s name
- A description of the items you’re buying for resale
- Your name, business address, phone number, and signature
Your signature certifies that you’ll resell the items in the regular course of business and won’t use them personally. If you end up using something you bought tax-free, you owe use tax on that item’s purchase price. Most suppliers keep your resale certificate on file, so you typically provide it once per vendor rather than with every order.
Who Needs a California Seller’s Permit
If you sell tangible goods in California, you need a Seller’s Permit before your first sale. That covers retail storefronts, online shops, wholesalers, manufacturers who sell finished products, and anyone running a booth at a farmers market or craft fair.6California Legislative Information. California Code RTC 6066 Selling without one is a misdemeanor.7California Legislative Information. California Code RTC 6071
Two situations don’t fit the standard online registration path. If you’re selling at a single location for fewer than 90 days, such as a weekend pop-up or a holiday market booth, you’re a temporary seller and need a temporary permit rather than a regular one.8California Department of Tax and Fee Administration. Temporary Sellers If you’re based outside California, you still need to register once your total sales of tangible goods delivered into California exceed $500,000 in the current or preceding calendar year. That threshold includes marketplace sales and applies from the day you cross it.9California Department of Tax and Fee Administration. Use Tax Collection Requirements Based on Sales into California
Penalties for Operating Without a Permit or Misusing One
Operating as a seller without a valid permit is a misdemeanor. Each offense carries a fine between $1,000 and $5,000, up to one year in county jail, or both. Anyone who deliberately avoids getting a permit to dodge taxes also owes a 50-percent penalty on the tax that was due during the period they operated without one, unless their average monthly tax liability was $1,000 or less.10California Department of Tax and Fee Administration. Sales and Use Tax Law – Chapter 10 – Violations
Using a resale certificate to buy something you know you’ll keep for personal use triggers separate consequences. You’ll owe the sales tax you avoided, plus interest, plus a penalty of 10 percent of the tax due or $500, whichever is greater, for each improper purchase.11California Legislative Information. California Code RTC 6094.5 If you also fail to report and pay the use tax you owe, the CDTFA can add a 10-percent negligence penalty or a 25-percent fraud penalty.12California Department of Tax and Fee Administration. Interest, Penalties, and Collection Cost Recovery Fee (Publication 75) A purchase made with intent to evade tax is itself a misdemeanor carrying the same fine and potential jail time as selling without a permit.