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You must keep your records for four years. You must file a return for your sales and purchases on or before the last day of the month following the close of your reporting period. You must file your tax return even if you have no tax to report. Furthermore, you must pay the sales tax due on your retail sales in California.
Pay attention to how long your sales tax permit lasts. Permits in some states (e.g., California and Texas) are good for as long as you own your business, while in other states (e.g., Connecticut and Pennsylvania), they must be renewed every one to five years.
Some states make it easy for sellers by automatically renewing their sales tax permits, or just issue one with no expiration date. Once you have a permit in these states, you won't have to worry about it expiring. If you do, you'll need to renew that permit on a yearly basis.
Such permits are normally issued to selling operations lasting no longer than 90 days at one location.
Typically a Seller's Permit will be issued within 14 days if the application is received by mail. It can be acquired the same day, if applied for in person.
Product Exemptions State tax laws allow seller's permit holders to sell certain types of goods without collecting or paying sales tax. Even if a seller only deals in tax-exempt products, a seller's permit is still required. This is because seller's permits serve additional purposes beyond sales tax collection.
Whenever you buy, sell, or discontinue a business, you will need to contact the California Department of Tax and Fee Administration (CDTF). If you are buying a business, you may need to obtain a seller's permit, as permits are not transferable.
In California, there are two ways to verify a seller's permit number. You can call the State Board of Equalization at 888-225-5263, or you can use the online Seller's Permit Verification tool. Both methods allow you to determine if a business is registered in California and how the business is registered.
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