California Seller’s Permit: Requirements, Costs & How to Apply

Are you currently starting a business in California? One of the first things you’ll hear about is a California Seller’s Permit. This permit is issued by the California Department of Tax and Fee Administration (CDTFA) and is required if you plan to sell or lease tangible goods that are typically subject to sales tax. It’s sort of like your ticket to legally collect sales tax from customers. Without it, you could face penalties and delays.

So let’s take a look at why it’s important and how to get one so you can be compliant with California’s laws.

California Seller’s Permit: Everything You Need to Know Before Selling

Before launching your business, it’s essential to understand the ins and outs of the California seller’s permit. Learning how to get a seller’s permit in California makes sure you’re legally set up to collect sales tax on any tangible personal property you sell.¹

The California Department of Tax and Fee Administration makes the application process straightforward, and the best part is how much a seller’s permit costs in California. It’s completely free.¹ But keep in mind, compliance requires reporting taxes regularly.

Many small business owners ask, do you need a seller’s permit to sell on Etsy in California, or do you need a seller’s permit to sell on Amazon in California? The answer is yes, because both platforms involve the sale of taxable goods.³

What Are the Requirements to Get a Seller's Permit in California?

Before you can legally sell tangible personal property in California, you’ll need to apply for a seller’s permit through the California Department of Tax and Fee Administration. The process is straightforward, but you’ll need to prepare the right information in advance. Below is a checklist of the main requirements to guide you through the application¹:

• Legal name and Social Security Number (or Federal Employer Identification Number for businesses)
• Business name and physical address
• Mailing address and contact information
• Description of the products or services you plan to sell
• Estimated monthly sales and taxable transactions
• Identification documents, such as a driver’s license
• Bank account details for your business
• Supplier information, if applicable

Once you’ve gathered these details, you can apply online or in person with the CDTFA. Having everything ready will speed up the process and reduce delays. It’s essential to meet these requirements, as you’ll be one step closer to officially collecting sales tax and running your business in full compliance with California law.³

What Permits Do I Need to Sell Legally in California?

Starting a business in California means you need the right permits. At the top of that list is the seller’s permit. If you’re unsure about what permits I need to sell in California, start by learning how to get a seller’s permit in California. This document is required if you sell tangible personal property that is subject to sales tax, whether online or in person.¹

The California Department of Tax and Fee Administration oversees the application process. Beyond the seller’s permit, your business may need additional local licenses depending on your city or county. Please note that a local business license or zoning permit could also be necessary.⁴

Do Freelancers and Online Sellers Need a Permit?

Whether freelancers need a seller’s permit depends on the type of work they’re doing. If you provide services only, like graphic design, writing, or consulting, you generally don’t need one. However, if your freelance business involves selling tangible personal property (for example, custom prints, handmade crafts or merchandise), then yes, you’ll need to understand how to get a seller’s permit in California.¹ The California Department of Tax and Fee Administration requires permits for anyone selling goods subject to sales tax, even if it’s a side hustle.

Can I Use a California Seller’s Permit in Other States?

A California seller’s permit is valid only for sales in California. If you plan to sell tangible personal property in another state, you must check that state’s rules. Each state has its own sales tax requirements and may issue separate permits.

Even if you operate online, out-of-state sales may require you to register for a permit in that state if you exceed certain thresholds. California’s Department of Tax and Fee Administration cannot authorize sales outside the state.¹

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How to Get a Temporary Seller's Permit in California

Step 1: Confirm you need it

If selling taxable goods for less than 90 days, you’ll need a temporary seller’s permit.¹

Step 2: Choose dates and locations

Provide exact start/end dates. Multiple locations are allowed only if within the same 90-day window.¹

Step 3: Gather your info

Have SSN/EIN, business details, addresses, product descriptions, estimated sales, and banking info ready.²

Step 4: Apply online

Register through CDTFA Online Services by clicking on“Register a New Business Activity,” then go to Sales & Use Tax.^1,2

Step 5: Print and display the permit

After approval, print your temporary seller’s permit and display it at your sales location.¹

Step 6: Collect sales tax

Charge sales tax on all taxable tangible personal property sales. Keep daily records and receipts.³

Step 7: File return

File your sales tax return by the end of the month after your permit closes.¹

Step 8: Close or convert the account

Close temporary accounts after sales end, or convert to permanent if continuing operations.²

Step 9: Ask for help

Contact CDTFA Customer Service or check Pub. 73 if you need assistance.^1,2

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Final Thoughts

Securing a seller’s permit is an essential step for any entrepreneur planning to do business in California. The California Department of Tax and Fee Administration makes the application process relatively simple, and the fact that a seller’s permit in California costs zero dollars means cost won’t stand in your way.¹

Holding your permit allows you to collect and remit sales tax on tangible personal property, while also protecting both you and your customers. It’s important to meet these requirements, so you can build a solid legal foundation for your business success.⁵

Sources:

1. Obtaining a Seller's Permit | CDTFA
2. Temporary Sellers | CDTFA
3. Do You Need a California Seller's Permit? (Publication 107) | CDTFA
4. Your California Seller's Permit (Publication 73) | CDTFA
5. Online Services: Registration - CDTFA