If you are engaged in business in California, you are required to obtain a valid California Sellers Permit.
The requirement to obtain a seller's permit applies to individuals as well as corporations, partnerships, and limited liability companies. Both wholesalers and retailers must apply for a permit. If you do not hold a seller's permit and will make sales during temporary periods, such as Christmas tree sales and rummage sales, you must apply for a temporary seller's permit. Such permits are normally issued to selling operations lasting no longer than 90 days at one location.
Does your company engage in business in the state of California?
You are engaged in business in California if you meet any of the following conditions:
- Have an office, sales room, warehouse, or other place of business in this state (even if the location is only temporary).
- Have sales representative, agent, or canvasser operating in California for purposes of taking orders, making sales or deliveries, installing, or assembling tangible personal property.
- Receive rental payments from the lease of tangible personal property in this state.
- You are a member of a commonly-controlled group which helps you establish or maintain a California market for sales of products, including but not limited to design and development of products you sell, or solicitation of sales of personal property on your behalf.
- You have agreements with affiliates in California who solicit customers and you compensate them based on completed sales, provided:
- You have $10,000 in sales to California customers through referrals from California-based affiliates, and
- You sold more than $1 million in products to California consumers in the preceding 12 months.
- Has an affiliate operating in California that has entered into an agreement to refer potential customers to the retailer, for a consideration based upon completed sales, by an Internet-based link, Internet website, or otherwise, under specified circumstances, or Owns or leases real or tangible personal property, including a computer server, in California.
There are other activities that may qualify a selling operation as being engaged in
business in California. Due to the various rules that apply, you should contact the
CDTFA's Information Center 800-400- 7115 or contact your nearest CDTFA
office to determine if you must obtain a permit. https://www.cdtfa.ca.gov/taxes-and- fees/faqseller.htm