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Does my business need a seller’s permit?

On Behalf of | Jun 16, 2022 | Business Law |

When starting a business, there are many different legal aspects you must consider. It is essential to understand each and every one of them to avoid problems when it comes time to open your doors.

One of the various things you must do is secure the right licenses and permits from the state, of which there are many. CA.gov explains one potential permit you may need is a seller’s permit, which allows you to legally sell in the state if your business meets certain criteria.

The permit

A seller’s permit is not for a permanent business. If you will have a business you expect to run for a long time, then you do not need this permit. It is only for businesses that will sell items for a temporary time, which means no longer than 90 days. Most businesses that need such a permit are seasonal, such as those selling for Halloween or Christmas.

Qualification

If you have a temporary business and need a seller’s permit, you must sell within the state of California. The items you sell must be taxable. You may also need a permit if you lease items that are subject to taxation. Wholesalers and others must also have a permit if the items they sell will eventually sell to consumers with applied sales tax.

If you do not meet the requirements for a seller’s permit, then you do not need one. However, you should make sure you do not need it as you could face penalties if you should have had it and you failed to get it.