Selling on Craigslist: When Do I Need a Seller’s Permit?

Selling on Craigslist: When Do I Need a Seller’s Permit?

Craigslist has become one of the go-to places for selling items online. There are tons of items you can sell on Craigslist, including clothes, antiques, household items, jewelry, tools, and any other item you can think of.

What’s nice about the site is that you can use it to sell items here and there, or you can use it to build an e-commerce business. Before you continue to sell items using Craigslist, you’ll want to ensure that you’re following state and local laws.

Here’s what you need to know about selling items on Craigslist and obtaining a California sales permit to ensure your sales are properly taxed and documented.

Online Sales in California

According to California law, when you sell or lease a vehicle, merchandise, or any other type of tangible property, you must register with the California Department of Tax and Fee Administration (CDTFA). This is required for long-term and temporary sales. Registering ensures that you pay all applicable taxes on your taxable sales.

Once you register with the CDTFA, you’ll be issued a seller’s permit. Be aware that a seller’s permit is not the same as a resale permit or a resale number.

So, what does a seller’s permit allow you to do?

In basic terms, by having a seller’s permit, you have the state-mandated license that allows you to legally sell items at retail or wholesale levels. With a seller’s permit, you can also issue resale certificates to suppliers.

Who Needs a Sellers Permit?

If you’re only selling a single item here and there throughout the year, you may not need to obtain a seller’s permit or pay taxes on those sales—but if you plan to routinely sell on Craigslist or any other online marketplace, you’ll want to apply for a permit.

In general, if you make more than three sales in a 12-month period, California law requires that you obtain a seller’s permit. This applies not only to online sales but in-person sales as well, including yard sales.

Of course, there are some exceptions to the rules. You don’t need to obtain a seller’s permit in California if:

  • All sales are exclusively foreign or interstate commerce.
  • You make no sales in California.
  • You sell less than three items in a year.

Selling on Craigslist may be quick and convenient, but you don’t want to cut corners when it comes to paying taxes and obtaining a seller’s permit. Selling any kind of tangible goods in California without first getting the proper permit is a legal violation. This means you may be subject to fines and penalties.

Who Needs a Sellers Permit?

Get a Seller’s Permit from FastFilings

Wondering how to sell something on Craigslist without breaking any rules? If you consistently sell items on Craigslist or other online market places, you’ll want to obtain a seller’s permit. With a seller’s permit, you can have peace of mind that you aren’t committing Craigslist tax evasion, which means you aren’t at risk of being fined or penalized.

To avoid the hassle of getting a seller’s permit, choose FastFilings. All you have to do is complete a simple web form, digitally sign a document, and then your request will be sent. Once your request is fulfilled, we’ll send you the approved filings.

Before you set forth and start to sell on Craigslist, apply for a seller’s permit through FastFilings. Learn more about our services by calling our team at (415) 857-3301.

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