A seller’s permit is a license that gives businesses the right to collect sales tax on each transactional exchange, like selling of certain goods and services. This sales tax is collected on behalf of the government and is to be submitted to the concerned authority, usually a Department of Revenue, in the state of residence of the concerned business.
Which Businesses Are Subject to Sales Tax Collection in California?
Whatever business structure your organization wishes to have or has in the state of California, getting a California Seller’s Permit for it is of primary importance. Especially when dealing with a list of tangible goods and services that the state of California’s Department of Tax and Fee Administration (CBDFA) has specified. Some of these tangible goods and services include,
Now whenever a business has something to do with any of the mentioned tangible personal properties, they have to apply for a seller’s permit. How does one do that? Let us go through the steps to get a seller’s permit in the state of California.
Step-by-Step Process to Get a California Seller’s Permit
- The obvious first step is to visit the official government website or visit a physical field office of the authority that collects sales tax. In the case of California it happens to be CBDFA.
- The business then has to fill up the application form of the seller’s permit that is listed on the website. It usually has general questions regarding the business like the niche, name, entity type etc.
- Form on the website also inquires about the Social Security Number (SSN), the Driver’s License, Employment Authorization Card, State Identification Number etc.
- Next it is very important to submit details like the Merchant Card Name, NAICS (North American Industry Classification System) Code etc.
- After deciding whether you want to apply for a temporary (90 days) or permanent seller’s permit, you go ahead and share your DBA or location of doing business.
- Next step is to share the information regarding the bank account linked to the sales tax collection. This information would include monthly sales, an estimate of the products sold etc.
- Select the time duration for the payments whether they should be monthly, quarterly or annual.
- Enter basic information of one of the members including his name, phone, email etc.
- Finally you can submit your seller’s permit application after checking the Declaration of Intent.
These are the steps that you must follow to get your seller’s permit. You can also go ahead and create an online account on the CBDFA website to regularly keep up with any latest update or information. As is quite evident through the sheer number of steps in the process of getting a seller’s permit in California, it is a complex procedure.
Each document requires a lot of devoted legwork on the part of the business. If even one thing goes amiss, it would result in a huge blunder. Hence, business ventures, especially the ones which are completely new on the scene, prefer to take the help of online filing agent companies to do all the groundwork and gather all relevant documents on their behalf. Let us go through the steps of getting a seller’s permit with the help of a filing agent company.
Is There an Easy Way to Get a California Seller’s Permit?
Yes, indeed, there is an easy way of getting a California seller’s permit online which is by taking the help of an online filing agent company. The super easy steps that the businesses have to follow in this manner of applying for the seller’s permit include:
- Visiting the website of the online filing agent company and submitting a basic registration form. Accurately fill in whatever is asked and then let the legal experts do the research for you to find out what all licenses and permits are needed for your business to run in California.
- If they find out that a seller’s permit is required to run your business, you can rest free and focus on your business while the company takes all matters into their own hands and performs the needful. They will perform all documentation on your behalf.
- Last step for you is to receive your seller’s permit via your email ID or via the state postal services after a stipulated time period.
Isn’t this way a lot more simple than the long list of steps you were required to perform when you applied for the seller’s permit on your own? So what are you waiting for? Apply for a California Seller’s Permit to run your business smoothly in California today!