Every individual, California LLC, or corporation engaged in the business of selling or leasing tangible personal property in California that would be subject to sales tax if sold at retail must apply for a California Seller's Permit with the California Department of Tax and Fee Administration (CDTFA) under Cal. Rev. & Tax. Code § 6066 before making the first taxable sale. There is no state application fee ($0 under § 6067), though the CDTFA may require a refundable security deposit under § 6701 depending on credit and estimated tax liability. Wholesale-only businesses also require a seller's permit so they can issue a valid California Resale Certificate (Form CDTFA-230, 18 CCR § 1668), and remote sellers cross California's economic nexus threshold when total sales of tangible personal property for delivery in California exceed $500,000 in the preceding or current calendar year (Cal. Rev. & Tax. Code § 6203(c)(3)).
Official source: https://www.cdtfa.ca.gov/taxes-and-fees/sales-use-tax.htmVerified against the California Secretary of State and FTB on Oct 21, 2026
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Start with the right question.
You sell or lease physical goods at retail in California (storefront, online, pop-up, or trade show)
Register online with CDTFA for a regular or temporary Seller's Permit ($0 application fee) before your first sale and collect the 7.25% statewide base rate plus applicable local district taxes.
Official source: https://www.cdtfa.ca.gov/taxes-and-fees/sales-use-tax.htmYou only sell wholesale to other retailers or manufacturers
Still obtain a California Seller's Permit under Rev. & Tax. Code § 6066 and collect a completed Form CDTFA-230 Resale Certificate in good faith (18 CCR § 1668) from every California buyer.
Official source: https://www.cdtfa.ca.gov/taxes-and-fees/sales-use-tax.htmYou provide pure services or intangible software with no transfer of tangible personal property
A Seller's Permit is generally not required under 18 CCR § 1501 unless you also sell or fabricate physical goods or exceeds the $100,000 Qualified Purchaser use-tax threshold (§ 6225).
Official source: https://www.cdtfa.ca.gov/taxes-and-fees/sales-use-tax.htmYour preparation checklist
- File your California Articles of Organization (Form LLC-1, $70 SOS fee) or Articles of Incorporation (Form ARTS-GS, $100 SOS fee) first so your legal entity name and SOS file number match your CDTFA registration.
- Obtain your 9-digit IRS EIN and file your initial Statement of Information (Form LLC-12 or Form SI-550, $20–$25) within 90 days of formation.
- Gather officer/member SSNs or ITINs, California driver license or state ID numbers, business bank account details, estimated monthly taxable sales, and supplier names.
- Submit your Seller's Permit application online through CDTFA Online Services ($0 fee under Rev. & Tax. Code § 6067) for each physical place of business in California.
- Display the permit conspicuously at each business location (§ 6067) and issue or collect Form CDTFA-230 resale certificates before making tax-exempt wholesale purchases or sales.
- File sales and use tax returns on your assigned monthly, quarterly, or annual reporting basis by the last day of the month following the reporting period (Rev. & Tax. Code § 6451), even for $0-sale periods.
California Year-One & Seller's Permit Checklist
California Year-One & Seller's Permit Checklist
Not a filing or official compliance confirmation. Progress is separate for each entity type, stays on this device, and does not send reminders. Corp USA is not a law firm and does not provide legal advice.
Keep the requirements separate.
| Requirement | Verified detail / confirmation needed | Official authority |
|---|---|---|
| Retailers of physical goods (in-store or e-commerce) | Required before first sale (Rev. & Tax. Code § 6066) · $0 application fee (§ 6067); 7.25% statewide base rate + local district taxes (0.10%–3.50%+) | Official source: https://www.cdtfa.ca.gov/taxes-and-fees/sales-use-tax.htm |
| Wholesalers, manufacturers & drop-shippers | Required to issue or accept Form CDTFA-230 resale certificates · Presumption of taxability applies unless resale certificate taken in good faith (§§ 6091–6092; 18 CCR § 1668) | Official source: https://www.cdtfa.ca.gov/taxes-and-fees/sales-use-tax.htm |
| Temporary / seasonal sellers (craft fairs, pop-ups, Christmas trees, fireworks) | Temporary Seller's Permit required (valid up to 90 days at one location) · $0 fee; return and tax payment due shortly after the event ends | Official source: https://www.cdtfa.ca.gov/taxes-and-fees/sales-use-tax.htm |
| Out-of-state / remote sellers into California | Required if physical nexus OR >$500,000 CA tangible sales in prior or current calendar year · Economic nexus under AB 147 / Rev. & Tax. Code § 6203(c)(3); Marketplace Facilitator Act (§§ 6041–6049.5) covers 100% marketplace sales | Official source: https://www.cdtfa.ca.gov/taxes-and-fees/sales-use-tax.htm |
| Pure service businesses & SaaS (no physical media transferred) | Generally not required (18 CCR §§ 1501, 1502) · Watch Qualified Purchaser registration if >$100,000 gross receipts and untaxed out-of-state equipment purchases (§ 6225) | Official source: https://www.cdtfa.ca.gov/taxes-and-fees/sales-use-tax.htm |
| Lessors of tangible personal property | Generally required unless tax-paid at acquisition and leased in substantially the same form · Governed by 18 CCR § 1660 (leases of mobile transportation equipment have special election rules) | Official source: https://www.cdtfa.ca.gov/taxes-and-fees/sales-use-tax.htm |
Carry the decision forward.
Corp USA is not a law firm and does not provide legal advice. State fees are pass-through. Service fees and taxes are separate. Review the order price before payment.
Before your next step
There is $0 fee to apply for or renew a California Seller's Permit with the CDTFA under Cal. Rev. & Tax. Code § 6067. In some cases, the CDTFA may request a refundable security deposit under § 6701 (up to three times estimated monthly or two times estimated quarterly liability, capped at $50,000) if there is prior tax delinquency or limited credit history.
Official source: https://www.cdtfa.ca.gov/taxes-and-fees/sales-use-tax.htmYes. A California Seller's Permit is issued to the specific legal person conducting the sales and is not transferable under Rev. & Tax. Code § 6067. If you apply as a sole proprietor and later form an LLC or corporation, you must close the sole-proprietor permit and register a new permit under the entity's SOS file number and EIN.
Official source: https://www.cdtfa.ca.gov/taxes-and-fees/sales-use-tax.htmWholesalers selling tangible goods in California still need a Seller's Permit and must collect Form CDTFA-230 resale certificates from buyers. If 100% of your sales occur through a registered Marketplace Facilitator (such as Amazon or Etsy under Rev. & Tax. Code §§ 6041–6049.5) that collects and remits California tax on every order, you may not need your own retail permit unless you also sell on your own website, wholesale, or in person.
Official source: https://www.cdtfa.ca.gov/taxes-and-fees/sales-use-tax.htmEngaging in business as a seller without a permit—or after a permit has been suspended or revoked—is a misdemeanor under Cal. Rev. & Tax. Code § 6071, in addition to back tax assessments, 10% late-filing/late-payment penalties (§ 6591), and statutory interest.
Official source: https://www.cdtfa.ca.gov/taxes-and-fees/sales-use-tax.htmYou must still file a timely $0 ('zero') sales and use tax return by the due date (the last day of the month following the close of your monthly, quarterly, or annual reporting period under Rev. & Tax. Code § 6451) so the CDTFA does not issue an estimated billing or revoke your permit.
Official source: https://www.cdtfa.ca.gov/taxes-and-fees/sales-use-tax.htmBecause a Seller's Permit is non-transferable (§ 6067), you must file a Notice of Closeout with the CDTFA, file a final return, and remit tax on any remaining inventory or fixtures sold at liquidation unless the sale qualifies as an exempt occasional sale under Rev. & Tax. Code § 6006.5 and 18 CCR § 1595.
Official source: https://www.cdtfa.ca.gov/taxes-and-fees/sales-use-tax.htm