How to Apply for a Seller Permit in California

all right guys welcome back to another training uh and explanatory video on um in our series um this one today we're going to be

going through how to register for a seller's permit in California uh resale certificates are important for um the business that we're in selling on Amazon or selling online in general and

especially if you want to start getting wholesale accounts pretty much every manufacturer or distributor requires us to have a seller permit or a resale certificate in order to open a wholesale

account with them so today we're going to go through exactly each step that's required in order to open and get a seller's permit from the state of

California first we go on this website onlineservices.cdtfa.ca.gov

onlineservices.cdtfa.ca.gov

once you type in that address it's going to bring you to this page you want to scroll down and click on register a new business activity

from here the only thing that we are interested in is this first item which is selling items or Goods in California and we need a permit for that a seller's

permit then scroll down and click next um all of these uh questions are going to be answered no basically it says are you selling alcoholic beverages are you

selling tobacco products tires or cell phones or other covered uh electronic devices so we're not going to be doing

any of that so you click on no and next same thing here no fuel no Lumber no Wireless services and no lead acid batteries click next

what type of what business type are you registering this activity for now this depends on your on how you've set up your business if you're an individual or sole proprietor you select

that if you're a C Corp or an S corp you correct you you select Corporation LLCs select this so depending on how you've set up your business you select the appropriate

line item here we're going to go with sole proprietor for today click next and here you have the option of putting in either an individual tax payer ID or

social security number I'm gonna go with his social security number now if you put in an LLC or a or a C Corp you will you will have the

option of putting in your employer identification number EIN number that you got from from IRS they also require your driver's

license as a secondary form of ID so go ahead and put your driver's license number on there and are you changing from one business

entity to another the answer would be no for pretty much all of us click next do you want to current do you have a current account with cdtfa if you have an account or if you had a seller's

permit in the past and you just let it lapse you'd collect yes here but generally speaking everybody should be saying no on here click next it tells

you that and based on our answers it looks like we're looking for a seller's permit yes we are looking for a seller's permit uh click next are you looking for a temporary sellers

permit after 90 days it will expire so no we want the seller sellers permit to be indefinite so you so you say no on that click next this is where you're going to put your

address the address has to be the you want to make sure the address here is the same as the address on your bank is the same as the address on your Amazon account it's important to get the in to make

sure that you get the all the information the same so that there is no no chance of you missing or having something go to a different

address if it's a PO box and you forgot to update it here so usually your home address is the best to put on here and you always want to verify the address that's the verified address so

you choose that use as business location most of us would be saying yes some people would put no because they have an office or a PO Box that they want to use for it

click next now they want specific information about you so since we put social security number it's an individual if we had put um

if we had put an LLC or a corporation it would require the information for the LLC or the corporation so I will just go ahead and continue filling this in

update of birth and then your contact information here um so it wants to know who you're

provider is what your mobile number is we'll go ahead and put on here and your email address so you can put in a secondary phone

number if you want I think it is required so let's put the same number on there and click next contact information books and Records

maintained by owner yes is the owner of the contact for the business activity yes um if you have people working for you that are going to be your accountant or whatnot and you want to put them on here

you can do so if you say no and then put in the information but generally speaking is just a lot easier if you just put yourself and then you receive all the information click next will the business be

accepting credit card payments no we will not and are the internet sales yes we will be making internet sales are you making internet sales through a third party yes you will be making an internet

sales through a third party uh now they want to know exactly where we're selling so provide Your Business website we don't have a Business website so

generally just put amazon.com and the name of the third parties site is also Amazon and their website is also amazon.com

click next now it's asking for an in in aics number

um and you can you need to have an naics number or our clients we've normally used uh what's called all other general merchandise stores

so I'll go ahead and paste that all other generals that the number is four five two three one nine other general merchandise store

um so you select that click next does your business conduct any of the following business activities ship taxable goods from an out of state

location to customers in California purchase subject to use tax consumer so we do do this ship tax taxable goods from out of state location to customers in California

purchase subject to use tax consume that places other than your sales location construction contracts no no no I turn sales Food Truck Auction events no

vending machine says no lease no less or not so we would say no on this because we're assuming that Amazon is going to be shipping directly from a California warehouse to a California

customer so we will say no to all of these click next are you planning on registering with a DMV for a dealer license we are not are you a vehicle Auctioneer we are not

click next is this a location for a temporary event it is not next and then

business location use the same as the taxpayer business location so just keep that as yes and it'll Auto populate it click next and are you doing business ads if you

are you can just put um what your what Your DBA is and then your phone number put your phone number on there and click

next sales permit start date you want to use ideally it's good to start to use the first of a month but you can you can

check any any one but we're going to do the first of the month for this one click next are you buying or

transferring an existing business we are not click next you want to add additional business location we do not and that's the primary location click

next start date December that we put in projected monthly sales you can just put whatever here you know we're going to say 10 000 for now but you can put two

thousand five thousand a million whatever you want to put in there there it's just what you're projecting that it doesn't you know they just want to

have a ID on it uh projected monthly taxable sales um we'll say five thousand and uh do you anticipate zero dollars in

monthly sales we do not if you don't think you're going to be selling anything the first month then you want to say yes there but um we don't do you anticipate zero dollars in monthly taxable sales we do

not uh products that will be sold during the course of business uh general merchandise toys grocery

and that should be just a bunch of uh items and your account information your books and records are at this address your

mailing address is the same address you want to select each one of them and click next uh you you need to put in a supplier's

name so you can just you know Google um any any supplier um so let's just say we want to put targets so just

a Target Google Target um local Target I'm actually I'm actually type in so I just put on Google Target near me and there is

a Target that's close to me their phone number is so products purchased would be toys and their address is

that we're going to verify the address click here to verify it's been verified save and at now we have one source A supplier it

doesn't matter so right now Target you can use Walmart or any major if you have wholesale accounts you can actually even use your wholesale supplier on here and

then click next it tells you it gives you information you're going to be reporting quarterly and you need to acknowledge that the

above is correct and click next you put in your name and information here and once you finish putting in all the

information that they're asking for click next you are check that off click next

if you're not registered to vote would you like to register to vote uh that right now my choice

and this is it so now once you get to this page you just want to go ahead and click submit are you sure you want to submit this request okay and

your application has been submitted you can now bookmark this page and come back to it they will email you when your

seller's permit is ready and you can use that seller product make sure that you take a screenshot of this or at the very least copy this line because you would

need your the email address and your confirmation code in order to check the status of your seller permit if you don't receive it quickly enough usually takes them 24 to

48 hours sometimes it does take longer so um that's it that's all that's the process to get the seller's permit set up and what you have to do now is once

you get your seller's permit you use that to start opening wholesale accounts and then it's important to note that every three months you have to file a sales tax return with the state of

California it would be a zero dollar sales tax return because Amazon collects and remits sales tax on our behalf but you still have to file the sales tax

returns we'll be doing a different video on how to file your sales tax returns and if you're part of our coaching program you will have access to that view to that video as well that's it for

today guys thank you so much and if you have any questions or any issues please let us know and as always you can find us on all the different social media platforms or you have your our contact

information email or phone number all right thanks guys