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So, you’ve decided to dive into the world of reselling in California—congratulations! Whether you’re eager to fill your bin store with merchandise or planning to stockpile inventory for your online store, there’s one thing you absolutely can’t skip: the California resale permit. Think of it as your golden ticket to buying goods without paying sales tax upfront. Exciting, right?
But wait, what exactly is a California resale permit, and why do you need one? Let’s break it down. In this guide, we’ll walk you through everything you need to know about getting and using a resale permit in California, with a few tips and tricks sprinkled in along the way to make the process as smooth as possible. Ready to get started? Let’s go!
A seller’s permit, sometimes referred to as a California resale permit, is a state-issued document that enables companies to buy products in bulk without having to pay sales tax. However, the intention must be to resell said items as the seller’s permit authorizes companies to shift the tax burden to the final customer. It is not only advantageous but also necessary to obtain this authorization if you operate as a retailer or reseller in California.
Not every company or business is eligible for a permit to resell. Your company must sell or lease tangible personal property in order to qualify. Retailers, distributors, and even certain service providers who sell products in addition to their services fall under this category.
When applying, you’ll need to provide several pieces of documentation:
Check out these FAQs for obtaining a seller’s permit.
When you buy goods for resale, present your resale permit to your suppliers to avoid paying sales tax. Keep accurate records of all transactions to ensure compliance.
Maintaining your resale permit is crucial. Keep it updated with current business information and renew it as required by the state. Proper record-keeping will help you stay compliant during audits and avoid penalties.
Resale permits typically need to be renewed periodically. The renewal process is straightforward, involving verification of your business’s continued eligibility and updating any outdated information.
To ensure your permit remains valid, regularly verify its authenticity through the CDTFA. This step is particularly important if your business undergoes changes in ownership or structure.
If you’re selling anything in California, getting a resale permit isn’t just a box to check—it’s your ticket to playing in the big leagues. Not only does it come with some sweet tax perks, but it also gives your business that official, respectable shine. By following the tips we’ve lined up in this article, you’ll breeze through the application process and put your resale permit to good use as you watch your business grow.
If you’re a California reseller looking for a place to buy tax-exempt inventory, you’ve come to the right place. Be sure to have your seller’s permit on hand when registering! We’ll help you generate a reseller’s certificate valid for all of your future B-Stock purchases. If you have any questions about your state’s requirements, feel free to contact us.
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If your business sells or leases tangible goods, you likely need a resale permit to operate legally in California – especially if you’re looking for wholesale prices!
No, a California resale permit is only valid within the state. Other states have their own requirements.
If your application is denied, contact the CDTFA for guidance on how to address the issues preventing approval.
Typically, it takes about 2 to 3 weeks to process your application, but applying online might speed things up. If you’re in a hurry, make sure all your documents are in order before submitting them.
Don’t panic! If you misplace your resale permit, you can request a duplicate copy from the CDTFA. Just be sure to report it as soon as possible to avoid any issues with your business operations.
Absolutely! Even if you don’t have a physical storefront, as long as you’re selling goods to customers in California, you’ll need a resale permit to comply with state regulations.
Andrea is the lead content writer for B-Stock Solutions, the largest online network of B2B liquidation marketplaces. She specializes in creating buyer resources and tools for entrepreneurs and power buyers looking for liquidated merchandise.
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