Do you need a Seller's Permit for your business?

A seller’s permit enables entrepreneurs to collect sales taxes from their customers. They are then required to report those amounts on a regular basis.

The question is, do you need one?

According to the California State Board of Equalization, you are required to obtain a seller’s permit if you engage in business in the state and if you “Intend to sell or lease tangible personal property that would ordinarily be subject to sales tax if sold at retail.”

Obtaining a seller’s permit is easy and inexpensive. You can do so by heading to your local BOE office or by completing the online registration. (Check if this is available in your state.)

The process is very easy, but you may be required to submit the following documents:

  • Your social security number (corporate officers excluded).
  • Your date of birth.
  • Your driver license number, state ID number, or other ID (e.g., passport, military ID).
  • Incorporation date, corporate number, and FEIN number (corporations and LLCs only).
  • The name and location of a bank where you have an account.
  • Names and addresses of suppliers.
  • Name of the person maintaining your account.
  • Names and addresses of personal references.
  • Anticipated average monthly sales and the amount of those sales which are taxable.
  • Your email address.
  • Additional information may be required.

Image credit:  ell brown on Flickr