Doing Business in California — What You Need to Know (Publication 51)
Getting Started and Filing Your Return

Start Your Business

When you sell or lease any merchandise within California, even temporarily, you are generally required to register with us, file regular returns, and pay tax on your taxable sales. Even if you make sales online or on a temporary basis—such as at a fundraiser, a craft show, or a booth at a flea market—you may need a seller’s permit. These permits are not transferable.

Depending on your business activity, you may need multiple permits or licenses.

However, if you sell exclusively through a registered marketplace facilitator, you are not required to be registered as a retailer with us. You should contact the marketplace facilitator and request they provide documentation to you that they are registered with us and are responsible for the tax on sales made through their marketplace.

Our online registration system allows you to print your seller’s permit once your registration is complete. For some special tax and fee program accounts, the application may be placed on a registration hold for review. During the review process, you can log in to check on the status of your application. Once your registration is complete, you can print your permit or license from our website.

Register Online

To access the features described below, you must first create a username and password. To do so, use the Register button at the top right of cdtfa.ca.gov. After creating a username and password, you can continue to any of our services by clicking the Login button.

File Your Return

Use our Online Filing Service to file your return and pay taxes due. You can file online for all tax programs we administer.

Payment Options

Most customers must pay their liabilities at the time of filing. We accept a variety of payment methods, including direct bank account transfer, Electronic Funds Transfer (EFT), credit card, check, or money order. Payment plans may also be available. For more information, please refer to our Make a Payment or Prepayment webpage.

Except for the Motor Carrier Office, our offices do not accept cash as a method of payment. You may contact one of your local field offices to request an exemption if you are unable to pay your taxes without cash.

Verify Permits and Licenses

When a customer provides you a resale certificate to buy an item for resale, you should verify whether the seller’s permit number on the resale certificate is valid. The Permit, License, or Account Verification system helps you determine the status of a permit, license, or account. You can also check the status of a cigarette and tobacco retailer’s license, whether a vendor of covered electronic devices (CEDs) is registered to collect and pay the electronic waste recycling fee, or determine who owns an underground storage tank.

You may also call us to verify your customer’s seller’s permit. Use our automated service to enter the account or permit number or call our Customer Service Center.

• Automated Seller’s Permit Verification Service: 1-888-225-5263
  You may call this toll-free number at any time to verify a seller’s permit. You will not have access to a customer service representative at this number.

• Customer Service Center: 1-800-400-7115 (CRS:711)
  Customer service representatives are available Monday through Friday from 7:30 a.m. to 5:00 p.m. (Pacific time), except state holidays.

Additional Information and Contacts

Nonprofit Organizations

Although many nonprofit and religious organizations are exempt from federal and state income tax, there is no similar broad exemption from California sales and use tax. Generally, a nonprofit’s sales and purchases are taxable. In other words, nonprofit and religious organizations, in general, are treated just like other California sellers and buyers for sales and use tax purposes.

Nonprofit organizations generally need a seller’s permit if they make sales of goods or merchandise in California. This is true even if the sales are not taxable. In limited instances, when the organization makes sales only occasionally, we can issue a temporary seller’s permit. Refer to publication 18, Nonprofit Organizations, to learn more about how California tax applies to nonprofit organizations.

Get it in Writing

Please refer to CDTFA-8, Get it in Writing! Sales and Use Tax Law can be complex, and you are encouraged to put your tax questions in writing. This approach will give us more information on your situation, and it may protect you from owing tax, interest, or penalties if you receive erroneous information. This protection is not provided for advice given to you verbally, in person, or on the telephone.

Taxpayers’ Rights Advocate

The Taxpayers' Rights Advocate (TRA) Office helps taxpayers when they are unable to resolve a matter through normal channels, when they want information regarding procedures relating to a particular set of circumstances, or when there are apparent rights violations in the audit or collection of taxes or fees.

The TRA Office holds annual Taxpayers’ Bill of Rights meetings to listen to your suggestions, comments, and concerns. These meetings give you the opportunity to present your ideas, thoughts, and other issues related to CDTFA’s administration of our tax and fee programs.

To be placed on a notification list, please contact the TRA Office at 1-888-324-2798 or navigate to cdtfa.ca.gov/subscribe and check the box for Taxpayers’ Bill of Rights Meeting under the available notification options.

Tax Appeals Assistance Program

Taxpayers who have filed appeals with CDTFA are able to seek free legal assistance through our Tax Appeals Assistance Program, which is managed by the Taxpayers' Rights Advocate. Qualified law students, who are supervised by our tax attorneys, advise individuals (appellants) with appeals under $30,000. The law students research and draft appeal briefs and handle other matters on behalf of the appellant. Free legal assistance is offered to qualifying appellants with appeals regarding sales and use tax, the Cigarette and Tobacco Products Licensing Act, dual determinations, cigarette Internet purchases, underground storage tank fees, environmental fees, generator fees, successor liability, and customs appeals. For more information, refer to publication 215, Free Legal Help… Do You Qualify?

Taxpayer Education Consultation

The Taxpayer Education Consultation Program (TECP) is a free program designed to provide individualized tax education and assistance to new taxpayers who started a business in the last twelve months and filed at least two sales and use tax returns. You will receive a one-on-one consultation from a trained team member who will review your business operations and recordkeeping system. Consultations are not audits; however, you will need to provide the team member with access to your books and records so they can provide you with the best information and help make your business a success. To participate, or for more information and to verify your business qualifies, please contact your local office to schedule an appointment.

Equal Access

We are committed to providing equal public access to our services. The Americans with Disabilities Act (ADA) Coordinator can be reached by telephone at 1-916-309-8400 (CRS:711) or by email at EEO@cdtfa.ca.gov. If you need accommodation under the ADA, you may also contact your local field office.

Documents in alternative formats and other reasonable accommodations may be requested from our CDTFA ADA Coordinator, who can be reached by writing to:

ADA Coordinator, MIC:51
Diversity and Inclusion Office
California Department of Tax and Fee Administration
PO Box 942879
Sacramento, CA 94279-0079