To get a resale permit in California, apply online through the California Department of Tax and Fee Administration (CDTFA). The permit is free, the application takes a single session, and the CDTFA may issue it the same day you apply. One thing to know up front: what people call a “resale permit” or “resale number” is officially the seller’s permit. That one document is what lets you make retail or wholesale sales in California and buy inventory from suppliers without paying sales tax.1California Department of Tax and Fee Administration. Do You Need a California Seller’s Permit? (Publication 107)
What the Permit Actually Does
A seller’s permit does two things. It registers you with the CDTFA as a business that collects sales tax from customers on taxable transactions, and it gives you the right to issue resale certificates to suppliers so you can purchase inventory tax-free.1California Department of Tax and Fee Administration. Do You Need a California Seller’s Permit? (Publication 107)
The resale certificate is a separate document, form CDTFA-230, that you hand to suppliers at the time of purchase. The permit is your license; the certificate is the paperwork that proves you hold one. Applying for a permit solely to issue resale certificates on items you plan to keep for yourself is illegal.1California Department of Tax and Fee Administration. Do You Need a California Seller’s Permit? (Publication 107)
Who Needs One
Anyone who wants to sell tangible goods in California needs a seller’s permit before making their first sale. California law requires every person doing business as a seller to file an application for each place of business.2California Legislative Information. California Code RTC 6066 That covers sole proprietors, LLCs, corporations, and partnerships. Wholesalers who sell only to other businesses still qualify as sellers and still need the permit.
If you run an online store from California, you need one regardless of whether you have a physical storefront. Out-of-state sellers shipping into California must register once they exceed $500,000 in total gross revenue from California sales in the current or prior year, with collection beginning on the next transaction after they cross that threshold.
For short-term selling at a single location for fewer than 90 days (craft fairs, swap meets, holiday tree lots, firework stands, and similar events), apply for a temporary seller’s permit instead of a standard one. Each temporary location needs its own.3California Department of Tax and Fee Administration. Temporary Sellers The same rule applies to permanent operations: a separate permit is required for each place of business, and a permit is not transferable between people or locations.4California Legislative Information. California Code RTC 6067
What to Gather Before You Apply
Pull everything together before you start the form. The application is designed to be completed in one sitting, and missing information is the main reason people have to stop and restart.5California Department of Tax and Fee Administration. Do You Need a California Seller’s Permit? (Publication 107) – Applying for a Sellers Permit You will need:
- Your Social Security number or Individual Taxpayer Identification Number, and your California driver’s license or state ID number
- Your business entity type (sole proprietorship, LLC, corporation, or partnership)
- Your Employer Identification Number, required if you have employees or operate as anything other than a sole proprietorship
- Names and locations of banks where the business holds accounts
- Estimated monthly taxable sales, which the CDTFA uses to set your filing frequency and decide whether a security deposit is needed
- Names of businesses you expect to buy inventory from
- The NAICS code that describes your business activity
- Names and contact information for personal references
Every name on the application should match your government records exactly. Mismatches are the most common reason applications get flagged for manual review.
How to Apply Online
The fastest route is the CDTFA’s online registration portal. The form walks you through personal identification, then business details, then financial information. When you submit, the system generates a confirmation number immediately, and in straightforward cases the CDTFA may issue the permit the same day.5California Department of Tax and Fee Administration. Do You Need a California Seller’s Permit? (Publication 107) – Applying for a Sellers Permit Applications involving partnerships, multiple locations, or unusual structures may take longer.
If you would rather file on paper, you can submit a printed application by mail or in person at a local CDTFA field office. The CDTFA website has an office locator that identifies the nearest branch by zip code.
The Possible Security Deposit
The permit itself is free, but the CDTFA may require a security deposit to cover unpaid taxes that could be owed if the business later closes.6California Department of Tax and Fee Administration. Obtaining a Seller’s Permit The amount is set at the time you apply, based on factors like your estimated sales volume. Many small businesses are approved without one, but budget for the possibility so you are not caught off guard.
After You’re Approved
Once approved, you receive your official permit with a unique seller’s permit number. If you filed online, this typically arrives by email. California law requires you to display the permit conspicuously at your place of business at all times, so print a copy and post it where customers can see it.4California Legislative Information. California Code RTC 6067 You will also give your permit number to suppliers when issuing resale certificates for tax-free inventory purchases.
Using the Resale Certificate
Your seller’s permit number goes on form CDTFA-230, the California Resale Certificate, every time you buy goods for resale. The certificate must include your permit number, your business name and address, a description of the items you are purchasing, the supplier’s name, and your signature.7California Department of Tax and Fee Administration. California Resale Certificate (CDTFA-230) Your signature certifies that you intend to resell the items in the regular course of business before putting them to any personal use.
Only use a resale certificate for items you genuinely plan to resell. Office furniture, cleaning supplies, equipment, and anything else for your own business use are not resale purchases, and you owe tax on them. Issuing a resale certificate for items you know you will not resell triggers back tax, a penalty of 10 percent of the tax or $500 per transaction (whichever is greater), interest, and potential misdemeanor exposure.8California Department of Tax and Fee Administration. Sales and Use Tax Law – Section 6094.5
Your Obligations After the Permit Is Issued
Getting the permit is step one. Step two is filing sales tax returns on the schedule the CDTFA assigns, which is based on the taxable sales figure you reported when you registered.9California Department of Tax and Fee Administration. Filing Dates for Sales and Use Tax Returns Smaller businesses typically file yearly or quarterly; higher-volume businesses file quarterly with prepayments or monthly. Quarterly returns are due on the last day of the month following each quarter, so the January through March return is due April 30. When a due date falls on a weekend or state holiday, you have until the next business day. Missing a deadline triggers penalties and interest, so set reminders well before each due date.
Notify the CDTFA whenever your business changes in a meaningful way: a new address, a change in ownership structure, or adding or losing a partner. You can submit changes through CDTFA Online Services or by completing form CDTFA-345-WEB.10California Department of Tax and Fee Administration. Tax Guide for New Permit and License Holders – Managing Your Sales
If you stop selling, close the permit. Leaving it open means the CDTFA keeps expecting returns, and failing to file generates penalties even when you owe zero tax. Use CDTFA Online Services or form CDTFA-65 to close the account, file a final return, and pay any outstanding amounts. A security deposit, if you posted one, is not released until this process is complete.11California Department of Tax and Fee Administration. Closing Out Your Account (Publication 74)
Why You Can’t Skip This Step
Operating as a seller in California without a permit is a misdemeanor. The CDTFA can also assess all the taxes you should have collected during the period you operated without one, plus penalties and interest layered on top.12California Legislative Information. California Code RTC 6071 Because the application is free and often approved the same day, getting the permit before your first sale is the only sensible path.