How to Register for a Sales Tax in California
Registering for a sales tax permit in California involves several steps. In California, businesses that meet certain criteria are required to obtain a sales tax permit. It is important to note that the specifics of when a sales tax permit is required can depend on the nature of the business and its activities.
Determine Your Nexus
- Nexus refers to a connection or presence in California that requires you to collect and remit sales tax. Common examples include having a physical presence, such as an office or store, in the state.
- If you sell taxable items in California or have a business presence there, you likely have nexus.
Gather Information
- Before starting the registration process, gather necessary information such as your business details, legal entity information, and federal Employer Identification Number (EIN).
Create an Online Account
- Visit the California Department of Tax and Fee Administration (CDTFA) website.
- Create an online account or log in if you already have one.
Access the Registration System
- Once logged in, access the online registration system.
Fill Out the Application
- Complete the application form with accurate and detailed information about your business.
- Provide your EIN, business name, address, and other required details.
Indicate Your Business Activities
- Specify the type of products or services you sell that are subject to sales tax.
Choose a Filing Frequency
- Select your preferred filing frequency. This determines how often you’ll need to submit sales tax returns (e.g., monthly, quarterly, annually).
Submit Supporting Documents
- Depending on your business structure, you may need to provide additional documentation. For example, corporations may need to submit articles of incorporation.
Review and Submit
- Carefully review all the information you’ve entered to ensure accuracy.
- Submit your application.
Receive Confirmation
- After submitting the application, you will receive a confirmation. This may be immediate or take some time.
Wait for Approval
- The CDTFA will review your application. Once approved, you’ll receive your sales tax permit.
Start Collecting and Remitting Sales Tax
- Once you have your permit, you’re legally required to collect and remit sales tax on taxable transactions.
Stay Compliant
Be aware of your filing due dates and continue to stay informed about any changes in tax laws. The best number for out-of-state seller to call is 916-227-6600.
The California Department of Tax and Fee Administration (CDTFA) provides guidance on their website, and businesses are encouraged to review the current regulations or consult with a tax professional to ensure compliance with the latest requirements.