What is a Seller’s Permit?
A seller permit, commonly referred to as a “reseller’s permit,” is a state issued permit that enables a business owner to sell products. Obtaining a seller’s permit is a requirement for most business owners who are selling any sort of tangible product, and is also necessary for anyone who will be selling items temporarily (like at an event for example.)
(Scroll down for more info on seller’s permits.)
We specialize in registering seller’s permits for new and existing business owners.
We can set up new accounts and assist with making changes and closing out existing accounts. We work closely with the California Department of Tax and Fee Administration on behalf of our customers to ensure that everything is done correctly. By providing one-on-one consultations for our clients we provide them with a better understanding of how to successfully manage their account with the California Department of Tax and Fee Administration. Due to our extensive experience working with the CDTFA we’re very familiar with their policies and procedures, as well as with preparing and submitting all of the necessary forms and documents. We make the process informative and pain-free so that our clients are comfortable and confident when registering this necessary permit for their business.
Does a seller’s permit expire?
Seller’s permits do not expire. However, to keep your seller’s permit account in good standing the tax payer(s) listed on the seller’s permit account is/are required to file regular returns with the BOE. The reporting period is determined by the State Board of Equalization and is usually based on the amount of sales volume the business brings in. The BOE has an online system available to file returns via their website. Business owners will often times delegate this task to their bookkeeper or accountant.
Are there benefits to having a seller’s permit?
Seller’s permits allow you to buy products from wholesale distributors without paying sales tax. Additionally, many wholesale distributors will only sell to buyers who hold a seller’s permit so having one provides you the ability to buy from a larger array of distributors.
Is a seller’s permit the same thing as a business license?
No, seller’s permits are not the same as a business license. Seller’s permits are issued by the state and are purely for the sale of tangible products. Business licenses are issued by the city you operate in and are necessary for a wider range of business owners and/or professionals engaged in business. When trying to differentiate between the two think of them like this: seller’s permit is for sales tax – business license is for city tax.