Is a seller's permit the same thing as a resale certificate?

No, and mixing them up is a common early mistake. A seller's permit is what CDTFA issues to you so you can legally collect sales tax from your customers. A resale certificate is what you give to your suppliers to buy inventory tax-free, because you're going to charge sales tax when you resell it — not consuming it yourself. You need the permit before you can validly issue a resale certificate. See the resale certificate article for how that side works.

Does the seller's permit cost anything?

The permit itself is free — there's no application fee. The catch is the possible security deposit CDTFA can require from new registrants with no prior filing history, which functions like a landlord's damage deposit: it's refundable, but it ties up cash you weren't necessarily planning for at launch.

I only sell at a few farmers markets and craft fairs a year. Do I need a full permit?

If your selling is occasional and short-term rather than a standing operation, CDTFA's temporary seller's permit — valid for a single event or a series up to 90 days — is usually the better fit. It still requires collecting and remitting tax on whatever you sell, but it doesn't carry an ongoing filing schedule the way a regular permit does.

What information do I need before I start the application?

Your Social Security number (sole prop) or EIN (any other entity), the legal business name and any DBA, the physical business address, a NAICS code describing what you sell, your estimated monthly sales, and your bank account information if you plan to pay by direct debit. Having a business bank account already set up makes this faster.

What happens if I sell or close the business?

You have to close out the seller's permit with CDTFA — it doesn't happen automatically just because you stopped operating. Failing to close it out means the filing obligation keeps running (even a $0 return has to be filed on schedule), and if you sold the business, an unclosed permit can create confusion about who's responsible for a period's tax. Close it as one of the very last steps when winding down or transferring the business, not an afterthought.

California tax

How to Register for a California Seller's Permit: The Step-by-Step Setup

The permit itself is free and the online application takes maybe twenty minutes — the parts that actually trip people up are the security deposit, picking the right permit type, and figuring out what happens when you close or sell the business.

7 min read · Published August 2026

Key Takeaways

A California seller's permit is free and required before you make your first taxable sale — collecting sales tax without one is a violation, even unintentionally.
Apply online at cdtfa.ca.gov; you'll need your SSN or EIN, business entity details, a NAICS code, and an estimate of your monthly taxable sales.
CDTFA can require a security deposit from new registrants with no filing history, sized to roughly three months of your estimated tax liability.
If you only sell at occasional events (craft fairs, pop-ups, farmers markets) rather than year-round, a temporary seller's permit — valid up to 90 days — may fit better than a standing permit.
Closing or selling the business doesn't end your obligations automatically — you have to formally close out the permit with CDTFA, or you keep accruing filing requirements on an account that should be dormant.

The application itself is the easy part

Registering for a California seller’s permit is a free, roughly twenty-minute online application at cdtfa.ca.gov. The mechanics aren’t where people get stuck — it’s the decisions around it: which permit type actually fits how you sell, whether a deposit is coming, and what to do when the business eventually changes hands or closes.

The step-by-step registration

Go to cdtfa.ca.gov and select “Register for a Permit, License, or Account.”
Choose “Sales and Use Tax” as the account type.
Create a CDTFA online services account (email and password).
Enter your business details: legal entity type, legal name and any DBA, physical business address, and a NAICS code that describes what you sell.
Provide your SSN (sole proprietor) or EIN (LLC, corporation, partnership).
Estimate your average monthly taxable sales — this is what CDTFA uses to set your initial filing frequency.
Submit the application. CDTFA typically issues the permit number immediately or within a few business days.

The permit is free. The security deposit some new registrants get asked for is not the same thing.

The security deposit — the part nobody warns you about

CDTFA can require a security deposit from a new registrant with no prior California tax filing history, as protection against a new account that stops paying. It’s not universal — CDTFA decides case by case, often based on your estimated sales volume and business type — but it’s common enough for new businesses that it’s worth planning cash flow around rather than being surprised by it. The deposit is refundable, typically returned or released after a sustained history of on-time filing.

Occasional seller? Look at the temporary permit instead

If you’re selling at a handful of events a year — a holiday market, a series of pop-ups, a single trade show booth — rather than running a standing retail operation, CDTFA’s temporary seller’s permit (valid for a single event or a series up to 90 days) is usually the better fit. You still collect and remit tax on what you sell, but without taking on a permanent account and its ongoing filing schedule.

Multiple locations

If your business operates from more than one California location — a second retail storefront, a warehouse, a booth at a permanent market — each generally needs its own sub-permit under your main account. This matters for sourcing: sales made from each location are generally reported and sourced to that location’s own tax rate, not blended together. Keep this in mind when you expand rather than treating it as an afterthought once the second location is already running.

Closing out — the step people forget

When you sell or close the business, the seller’s permit doesn’t close itself. You have to formally close the account with CDTFA — typically through your online account or by contacting them directly — and file a final return covering the period up to closure. Skipping this step leaves an active account on file that’s still expected to file on schedule, which can quietly accumulate late-filing notices and penalties on a business that no longer exists in any practical sense.

See which filing frequency you’d likely get

Your estimated sales at registration determine whether you file monthly, quarterly, or annually.

Estimate your frequency

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California Sales Tax Filing Frequency Explained: Monthly, Quarterly, Prepay, or Annual

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How California Sales Tax Is Actually Calculated: Sourcing Rules and the Weird Stuff

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Are Resale Purchases Exempt From Sales Tax in California?

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Sources & References

Frequently asked

Questions owners actually ask

Is a seller's permit the same thing as a resale certificate?: No, and mixing them up is a common early mistake. A seller's permit is what CDTFA issues to you so you can legally collect sales tax from your customers. A resale certificate is what you give to your suppliers to buy inventory tax-free, because you're going to charge sales tax when you resell it — not consuming it yourself. You need the permit before you can validly issue a resale certificate. See the resale certificate article for how that side works.
Does the seller's permit cost anything?: The permit itself is free — there's no application fee. The catch is the possible security deposit CDTFA can require from new registrants with no prior filing history, which functions like a landlord's damage deposit: it's refundable, but it ties up cash you weren't necessarily planning for at launch.
I only sell at a few farmers markets and craft fairs a year. Do I need a full permit?: If your selling is occasional and short-term rather than a standing operation, CDTFA's temporary seller's permit — valid for a single event or a series up to 90 days — is usually the better fit. It still requires collecting and remitting tax on whatever you sell, but it doesn't carry an ongoing filing schedule the way a regular permit does.
What information do I need before I start the application?: Your Social Security number (sole prop) or EIN (any other entity), the legal business name and any DBA, the physical business address, a NAICS code describing what you sell, your estimated monthly sales, and your bank account information if you plan to pay by direct debit. Having a business bank account already set up makes this faster.
What happens if I sell or close the business?: You have to close out the seller's permit with CDTFA — it doesn't happen automatically just because you stopped operating. Failing to close it out means the filing obligation keeps running (even a $0 return has to be filed on schedule), and if you sold the business, an unclosed permit can create confusion about who's responsible for a period's tax. Close it as one of the very last steps when winding down or transferring the business, not an afterthought.

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Educational content only. This article is for informational purposes and does not constitute tax, legal, or financial advice. Every situation is different — consult a qualified professional before acting on anything here.