Tax

California Seller's Permit

Definition

A California seller's permit lets you sell or lease goods that are normally taxable at retail in California. It comes from the CDTFA, it's free, and both retailers and wholesalers need one before they start selling.

The permit is also the account you file sales and use tax returns under. The CDTFA tells you how often to file, based on how much taxable sales you expect, and it can ask for a security deposit in some cases.

The situation: you make candles and start selling them

Say you make candles at home in Orange County. You sell them at weekend markets and from your own website. Candles are goods that are normally taxable at retail, so you need a seller's permit before you start.

The permit is free. You apply online through CDTFA Online Services. In some cases, the CDTFA asks for a security deposit when you apply.

What happens after you register

You get a filing schedule. The CDTFA assigns monthly, quarterly or yearly returns, based on the taxable sales you expect.
Returns are due the month after. A return and payment are due by the last day of the month after each period ends. For a quarter ending June 30, that's July 31.
Larger sellers prepay. If your average taxable sales reach $17,000 or more a month, the CDTFA will tell you in writing to make prepayments.

What to do

Apply before your first taxable sale, not after
Track taxable and nontaxable sales separately from day one
Match your sales platforms (Square, Shopify, Stripe) to your deposits each month, so the return adds up
Put each return due date on the calendar as soon as you know your schedule
Get a temporary permit for a short event if you don't have a permanent place of business

Questions founders ask

Does a California seller's permit cost anything?

No, it's free. The CDTFA may ask for a security deposit to cover future taxes, and it sets the amount when you apply.

Do I need a permit for a one-time event or pop-up?

If you have no permanent place of business, you can get a free temporary seller's permit for sales at one location for 90 days or less, up to 90 days before the event. If you already have a regular permit, you register a sub-permit for each temporary location instead.

What if I've been selling without a permit?

Register now. Selling taxable goods without a permit is against California law, and the longer it runs, the more back tax builds up. A tax professional can help you sort out the past periods.

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