Selling products online through Amazon is often seen as one of the easiest ways to start a business. Many California-based Amazon sellers begin from home, list a small number of products, and scale over time. That leads to one of the most common questions new sellers ask: Do you need a business license to sell on Amazon in California?

The answer depends on several factors, including where you operate, how your sales are processed, and what you sell. Selling on Amazon involves various licenses and registrations, in addition to compliance with Amazon business requirements. This guide explains how those pieces fit together so you can understand how to start selling on Amazon in California with confidence.

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How Amazon Changes the Usual Sales Tax Rules

What You Usually Need to Sell on Amazon in California

Most people who become an Amazon seller in California should expect to review three main categories of requirements:

  • Local business licensing, which is generally handled at the city or county level
  • Sales tax registration, which may or may not require a seller’s permit, depending on how your sales occur
  • Tax identification, such as an EIN, SSN, or ITIN for Amazon business tax ID purposes

There is no single statewide “business license” issued by California. Instead, requirements depend on your location and selling structure.

How Amazon Changes the Usual Sales Tax Rules

Amazon operates as a marketplace facilitator under California law, meaning Amazon is responsible for calculating, collecting, and remitting sales tax on many retail transactions that occur on its platform when those sales are taxable in California.

For sellers who only sell products with Amazon—and do not make direct sales through a website, invoices, or in-person transactions—this can significantly change sales tax obligations. In many cases, Amazon handles the tax side of the transaction for you.

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What Is a Seller’s Permit?

A California seller’s permit is issued by the California Department of Tax and Fee Administration (CDTFA). It allows a business to sell taxable tangible personal property and report sales tax when required.

California also applies an economic nexus rule. As of April 1, 2019, a seller is considered “engaged in business” in California if their total sales of tangible personal property for delivery into California exceed $500,000 in the current or prior calendar year. This threshold applies even if the seller has no physical presence in the state.

A common question is do I need a seller’s permit to sell on Amazon? The answer depends on how your sales are handled. When selling through Amazon, a seller’s permit may or may not be required, depending on whether Amazon facilitates the sale and remits the tax.

  • If all retail sales are facilitated by Amazon, and Amazon collects and remits sales tax as the marketplace facilitator, you may not be required to register for a seller’s permit for those sales. California law generally does not require you to register for a seller’s permit for those Amazon-facilitated sales alone.
  • If you sell products outside of Amazon—such as through your own website, direct invoices, pop-up events, or other platforms—you may need a seller’s permit for Amazon-related and non-Amazon sales.
  • Certain business activities, inventory storage, or mixed sales models can also trigger seller’s permit requirements.

Because of these variations, many sellers still choose to obtain a seller’s permit to keep their business flexible as it grows. Amazon does not require proof of a seller’s permit to create or maintain a seller account.

When a seller’s permit is required, California law also requires sellers to keep adequate sales and tax records to support their reporting.

Apply for a California Seller’s Permit!

Apply for a California Seller’s Permit!​

If your situation requires a seller’s permit, you can apply directly through CDTFA or use an online filing service like FastFilings that helps prepare and submit the California seller’s permit registration. 

Our filing service can be helpful for anyone who wants guided assistance and a streamlined process. FastFilings is a private service, not affiliated with government agencies. Service fees are separate from any government fees.

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What Is a Business License?

Knowing the difference between a business license vs seller’s permit is key before you register to sell on Amazon. In California, a business license is typically issued by a city or county, not the state, and requirements vary widely between California municipalities.

Many cities require a local business license or business tax registration for anyone conducting business within their jurisdiction. This can include home-based businesses, even if you sell exclusively online.

So do you need a business license to sell on Amazon? The practical answer is: you may need a local license, depending on where you live and operate. Amazon does not generally request or verify local business licenses as part of its seller approval process.

Local Rules for Home-Based Amazon Sellers

If you sell from home, local requirements are especially important to review. Cities and counties may require:

  • A business tax registration or license
  • Compliance with home occupation or zoning rules
  • Registration even if customers never visit your home

Because requirements vary widely, checking with your city’s finance or business licensing department is a smart early step before you start selling on Amazon.

Seller’s Permit and Resale Certificate

Seller’s permits and resale certificates are often confused, but they serve different purposes.

  • A seller’s permit allows you to make taxable sales and report tax when required.
  • A resale certificate is used when purchasing inventory that will be resold, allowing you to buy items without paying sales tax to the supplier.

A resale certificate is not a separate license. It is a document you issue using your seller’s permit information when buying products for resale.

Many sellers use the term “state sales tax number” to refer to their seller’s permit account number. This number is associated with your CDTFA registration and is used when filing returns or issuing resale certificates. It is important not to confuse this with a business license or with Amazon’s internal seller identification.

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Local Rules for Home-Based Amazon Sellers
Seller’s Permit and Resale Certificate

What Is a TIN?

A Taxpayer Identification Number (TIN) is used by the IRS to identify your business for tax purposes. For Amazon sellers, this information is required during the tax interview.

Common options include:

  • EIN (Employer Identification Number)
  • SSN (Social Security Number)
  • ITIN (Individual Taxpayer Identification Number)

Can you legally sell on Amazon with an ITIN? In many cases, yes—Amazon allows sellers to use an ITIN as their business tax ID, provided other requirements are met. This is common for individual sellers and certain non-U.S. or non-SSN holders completing Amazon’s required tax interview. Many sellers also choose an EIN to avoid using their SSN.

Do You Need an LLC to Sell on Amazon?

No—Amazon does not require sellers to form an LLC. Many Amazon sellers operate as sole proprietors, especially when starting out.

That said, some sellers form an LLC for liability or tax reasons as their business grows. This is a business decision rather than an Amazon seller requirement.

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Do I Need a UPC Code to Sell on Amazon?

Often, yes. Many products require UPCs or GTINs, especially branded items. UPC requirements are part of Amazon seller requirements rather than California business law.

Can I Sell Anything on Amazon?

No. Amazon restricts certain products and categories, and some items require approval. California law may also restrict certain goods.

When Do I Need to Collect Sales Tax?

For many Amazon transactions in California, Amazon collects and remits sales tax on the seller’s behalf. However, sellers may still be responsible for California sales or use tax on non-Amazon sales or other taxable transactions they conduct directly within the state.

Understanding where Amazon’s role ends—and yours begins—is essential for compliance.

Will I Need a State Sales Tax Number for Multiple States?

Amazon FBA (Fulfillment by Amazon) sometimes raises questions about multi-state tax obligations. While inventory storage can create connections to other states, many states also have marketplace facilitator rules similar to California’s. Using Amazon FBA alone does not automatically mean you must register for sales tax permits in every state where inventory may be stored. Sellers with multi-channel sales or complex fulfillment models should review each state’s rules carefully.

How FastFilings Can Help

How FastFilings Can Help

You can file many of these business registrations directly with government agencies, or use an online filing service like FastFilings if you prefer guided assistance. Taking time to verify what filings apply to your situation is a smart step as you begin selling on Amazon and grow your business. 

For assistance in obtaining a California seller’s permit and other business filing services, please feel free to contact FastFilings by filling out our online contact form today!

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Apply for a California Seller's Permit!

Need help filing your seller's permit in California?
Get Started!