How to Get a Reseller License in California
To sell tangible goods in California, resellers must obtain a seller's permit from the California Department of Tax and Fee Administration (CDTFA). Registration is free and can be completed online through the CDTFA's secure portal. Many applicants receive their permit immediately after submitting their online application. The CDTFA may require a security deposit based on your business type and expected sales volume.
You will need:
- Driver's license number
- Social Security number
- Bank account information
- Estimated business income
Once you have your seller's permit, you can issue resale certificates to suppliers when purchasing inventory for resale, allowing you to buy goods without paying sales tax at the time of purchase. However, misusing resale certificates to avoid tax on items intended for personal use is a misdemeanor that can result in fines and penalties. If you operate from multiple locations, you may need a separate permit for each premises.
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