As a business owner, you’ve already tackled some of the hardest tasks. You’ve found a niche in your industry, developed a business plan, secured financing, and found a physical space to house your retail store. Yet, before you can sell any goods to customers, you must first obtain a sales license. Knowing what permits and licenses your business needs can be quite confusing. We’re here to help! Keep reading for all the information you need to get a proper sales permit in California.
Establish & Register
Before you can launch your business, you’ll need to select an entity type. There are a variety of business types, including partnerships, limited liability company, and more. Be sure to discuss entity options with your tax adviser and attorney before making a decision. After deciding, you will want to register your company with the Secretary of State office. This office provides sales tax licensing. During this time, you’ll also want to create an Employer Identification Number (EIN) through the IRS. You will need an EIN before you can apply for a sales license in California.
In the state, a seller’s permit is required if you will sell or lease tangible property that is subject to sales tax. This includes items sold by retailers, manufacturers, and wholesalers. To apply for a CA sales permit, business owners can use the Board of Equalization’s (BOE) online tool. When using this application, you must provide business information, including:
- Business activity information, such as the type of product or service, number of employees, etc.
- Personal information (name, contact information)
- Business entity type
- Type of seller’s permit (temporary or permanent)
You will also have to provide information, such as personal references, tax records, and expected monthly sales. After your sales license application has been received, it is typically processed within 14 days.
After receiving a seller’s permit, you are required to keep business records for up to 4 years. You’re also responsible for paying sales tax due, filing state tax returns, and notifying the BOE of any business changes.
Since you will be operating a retail store, you may want to get started on site selection and inspection. Check with state and local laws to determine any zoning or taxation district rules that may apply to you. Once you’ve found the ideal location, arrange an inspection of the property. An inspection will check the location for overall safety regulations such as exit signs, fire extinguishers, and other measures.
Apply for a Retail License Today
Want to avoid filling for a CA sales license on your own? The online BOE retail license form can be confusing for first-time users. At SellersPermits.biz, we make the process easy and super convenient. For just $39.95, you can apply for your seller’s permit. With just six pieces of information, you can file in less than an hour! To learn more contact us at (415) 857-3301.