Subscribers vs. Seller: Does a Subscription-Based Business Need a Seller’s Permit?
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Subscribers vs. Seller: Does a Subscription-Based Business Need a Seller’s Permit?

Subscription-based companies are all the hype these days. According to Forbes, visitors to subscription company websites have grown by more than 800%. These companies have become so popular among consumers because they’re convenient, fast, and embrace the use of technology.

If you’re looking to start a subscription-based business and are wondering “Do I need a seller’s permit?”—we’re here to help. As an up and coming business owner, chances are that you require some type of license, but the details can get a little hazy. Keep reading to learn about seller’s permits and if they apply to you.

What Is a Seller’s Permit?

A seller’s permit is needed in most states if your company sells merchandise or other types of property. As a California resident, if you plan to sell tangible goods through a subscription service, you’ll need to have a seller’s permit. Tangible products include any item that can be physically touched, including food, cars, clothing, IT equipment, and other goods.

As a subscription-based company, you may need to buy inventory from a third-party supplier. If this fits within your business model, you may also want to apply for a reseller permit. This allows you to purchase bulk items to add to your inventory while avoiding taxes.

Operating a business without a seller’s permit can cause all sorts of issues, including tax problems, penalties, or even potential closure.

How to Apply

To apply for a seller permit CA, you’ll first need to ensure you have all of the necessary information. At a minimum, you will need to provide:

  • Driver’s license number
  • LLC information
  • Banking information
  • References
  • Projected monthly and taxable sales

In California, it’s free to apply for this permit. However, it’s important to note that the process can take weeks, if not months for the California Board of Equalization (SBE) to review your submission. If you’re on a strict timeline, you’ll want to apply as soon as possible.

Your Go-to Company for Seller’s Permit

Your Go-to Company for Seller’s Permit

Are you in a rush to get your company off the ground? Want to avoid hours of pen and paper filings? If so, our online permit service will save you time and frustration. At FastFilings.com, our service allows business owners to quickly and easily apply for a CA seller’s permit.

Provide basic information about your business and in just a few minutes, your state-approved permit will be submitted to the California SBE for review. To protect your confidential company information, we provide a fully encrypted form, ensuring your data remains protected.

Avoid the hassle of applying for a permit. Instead, use our fast and convenient tool.

Sources

  1. https://www.forbes.com/sites/richardkestenbaum/2017/08/10/subscription-businesses-are-exploding-with-growth/#68038fbe6678

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