Your Guide to Registering for a Sales Tax Permit in California - Taxify
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Your Guide to Registering for a Sales Tax Permit in California

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Your Guide to Registering for a Sales Tax Permit in California

California is a huge state, which means there are lots of opportunities to sell there. Some of you may already be wheeling and dealing in California, and others might just be getting started. Either way, we’ve created another guide to help get you registered and ready for business. This information was compiled directly from the California Board of Equalization. Have a question? Let us know! We’re here to help.

  1. Do I have to pay sales tax in California?CA
    • If you have nexus in California, then you have to pay sales tax. Having nexus means you have enough of a presence in a state to be required to pay tax on sales from that state. Have questions on nexus or whether not you owe sales tax? Check out this guide!
  2. Do I need a sales tax permit in California?
    • You’re considered a business in California if you:
      • Have an office, sales room, warehouse, etc. in the state.
      • Have sales reps, agents, or canvassers operating in the state.
      • Receive sales or rental payments from leases of tangible personal property in the state.
      • If you will be temporarily selling for no more than 90 days (seasonal work such as a fireworks booth, Christmas tree lot, garage sale, etc.).
      • FBA sellers: If you have goods in a California warehouse, you have nexus, and therefore you’ll want a permit.
  3. How can I make this as painless as possible?
    • Have the following information ready:
      • Ownership Information: Social Security Number, Federal Employer ID Number, State Employer Identification Number,
      • Business name, address, description, and type,
      • Business contact information, and
      • Driver’s License or State ID Number.
    • For corporations:
      • Corporation name, number, state and date incorporated,
      • Name, address, and phone number of partners, corporate officers, members or managers,
      • Names and phone numbers of personal reference,
      • Names and addresses of suppliers,
      • North American Industry Classification System Code (NAICS),
      • Standard Industrial Classification (SIC),
      • Bank name and address,
      • Name and account number of merchant credit card processor, and
      • Name, address, and phone number of person who maintains books and records.
    • Keep in mind: The type of information required will be different depending on the type of business and permits or licenses for which you are applying. Check the California Board of Equalization (BOE) for more information.
  4. How do I register?
  5. How much does the permit cost?
    • No payment is necessary for this permit (Wahoo!) – However, the BOE may require a security deposit to cover unpaid taxes, just in case the business closes. This will be specified at the time of registration.
  6. How long will it take to receive the permit?
    • For online registration, most receive account information immediately.
    • For in-office registration, most receive account information on the same day, depending on the time of registering.
  7. When will I need to renew?
    • There is no renewal required for California. However, as a permit holder, you are required to notify the BOE if you:
      • Change your business address,
      • Change the ownership of your business,
      • Add or drop a partner,
      • Sell your business,
      • Buy another business, or
      • Discontinue your business.

For more information: California Sales Tax Rules and Regulations

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