A seller's permit is required for any business that sells tangible goods.
If you will be making direct sales of tangible goods, a California seller’s permit is required and allows you to collect sales taxes from your customers. Obtain this permit through the California Department of Tax and Fee Administration (CDTFA).
Tangible goods are any physical item you sell, from food to medical supplies. This does not include services, such as care giving or consulting.
📝 Apply for a seller's permit
In general, a seller's permit is free. The CDTFA may occasionally ask for a security deposit on your permit depending on the nature of your business. To apply online, go to the CDTFA's online portal, or you can apply in person at their field office:
50 D Street, Room 230
Santa Rosa, CA
If you determine a that your business needs a seller's permit, you may also be interested in applying for a resale certificate that allows you to buy some materials without sales tax.
💸 Using your seller's permit
Once you have acquired your seller's permit, you are officially allowed to collect sales tax from customers! The sales tax rate varies by jurisdiction - you can find your sales tax rate with the CDFTA's lookup tool.