CDTFA and How Does This Affect My Business

Who Is the BOE and When Should Your Business Notify Them?

As a California business owner, you need to know where to go for important matters like filing your sales and use tax or knowing how to cross out renew California seller’s permit from your congested to-do list. If you’re new to business or opening a new location, you may be wondering if you need to notify the California BOE.

Who Is the BOE?

The BOE, or California Board Of Equalization, is the agency responsible for tax administration and fee collection in California. For many business owners, the BOE serves as the one-stop agency for seller’s permits, wholesale licenses, and tax filings.

However, as of July 1, 2017, the BOE no longer handles many of its former tax duties. A new agency has been created to collect most of the taxes and fees that were previously handled by the BOE.

Who Is the CDTFA and How Does This Affect My Business?

This new agency is called the California Department of Tax and Fee Administration (CDTFA). The CDTFA is now the place to go to obtain your California Seller’s Permit and file sales and use tax, and to update information about your current business.

For many businesses who are familiar with the BOE, the transition to CDTFA will be seamless. Most BOE employees were transferred to the CDTFA to ensure a smooth transition for local business owners.

When Do I Have to Notify the BOE or CDTFA?

You’ll first need to notify the CDTFA to let them know that you’re engaged in business in California and that you’d like to obtain your seller’s permit. This is the responsible step to run your business legally and ensure that your tax filings are accurate.

Remember that a California seller’s permit is required for any business that:

  • Has an office, warehouse, or any other place of business in California
  • Has agents or representatives operating in California
  • Receives rental payments from the lease of tangible personal property in California
  • Intends to lease or sell tangible personal property that would ordinarily be subject to sales tax if sold at retail

If any of these apply to your business, it is important that you apply for your seller’s permit with the CDTFA. You should also obtain a business license from your city or county. Your business could face closure if you are caught operating without your license or permit.

Who Is the BOE and When Should Your Business Notify Them?

You should also notify the CDTFA of the following changes:

  • Change of address
  • Change of ownership, including adding/dropping of partners or change in business structure
  • Close of business
  • If you buy or start a new business

What Do These Changes Mean for California Businesses?

If you already have your seller’s permit from the BOE or CDTFA, you probably won’t notice any major changes. However, if you’re a new business owner or are currently operating without a permit, you might want help with your business filings.

Avoid the headache of navigating the CDTFA website or waiting in long lines and let FastFilings help you get your permit online. We’ve filed more California seller’s permits than any other third-party filing service in the country, and we can help you get yours right away. Contact us today to get your permit fast and hassle-free.

Leave a Reply