NOTE: A Seller's Permit is NOT a Federal Tax ID Number, a Business License or a State Employer Tax ID EIN, a DBA, an LLC, or a Corporation.
The following applies to all businesses, including online, internet, home-based and home businesses.
Here is who needs to get a seller's permit:
Buyers or Seller's of wholesale. Buyers are tax-free and sellers of retail tangible items.
Those that lease taxable items.
Those that sell taxable items.
If you buy or sell wholesale, or if you want a tax ID to buy wholesale and sell retail, you will need to register a Seller's Permit.
Obtaining a Business License registration is a separate business tax registration type than a business license or federal tax ID number, and most businesses must register and have a business license and a DBA as well before starting business.
Both the business name certificate DBA and the seller's permit (if you sell tangible / taxable items) are required, and there may be civil and/or criminal penalties for not registering for a DBA or not getting a business license.
IMPORTANT!
BE AWARE THAT "STATE TAX HUNTERS" WILL BE AFTER YOU IF YOU DON'T OBTAIN A SELLER'S PERMIT?
For example, The Orange County Register in CA has reported that state tax hunters have visited more than 300,000 retailers and service businesses in most California cities to make sure they collect and pay sales tax to the state.
This practice has become common in most states who seek to enforce the proper sales tax registration and collection of sales tax of all businesses.
In California, the program is executed by (SCOP) to ensure businesses have a valid sellerโs permit and or business licenses to collect sales tax.
So far, more than 300,000 businesses have been investigated.
There are civil and criminal penalties(jail time) for not having a valid seller's permit when you sell taxable items or want to buy wholesale from wholesalers.
How Can I Get a Seller's Permit?
You can obtain it, here, online.
1. Click On The Get It Now Link Below
2. Submit Your Business Information
3. Then Select State & Then Select Seller's Permit
Get It Now
Seller's Permit Video
Tax ID Number Differences Video
Here is who needs to get a seller's permit:
- Buyers or Seller's of wholesale.
- Buyers of tax-free and sellers of retail tangible items.
- Those that lease taxable items.
- Those that sell taxable items.
A seller's permit is required (read law below) for retailers or wholesalers of tangible, taxable items.
It is required to buy wholesale & sell retail or sell wholesale items that are tangible, i.e., items you can touch. |