What is a Seller’s Permit?
If your startup is going to be selling or leasing products or selling taxable services, you are going to need a sellers permit. A sellers permit is a basic business requirement that allows your new venture to collect sales tax for the state. As a result, there are different requirements to apply for a sellers permit in every state.
According to most state guidelines, a new company has to get a sellers permit three weeks before the startup opens its doors, so make sure you plan ahead. Also, keep in mind that if you plan on opening multiple locations, you have to obtain a sellers permit for each one.
How to Get a Sellers Permit
As we mentioned before, every state has a different method when it comes to acquiring a sellers permit. For example, entrepreneurs in the state of California can register for a sellers permit in person at any Board of Equalization office. Registration can be usually completed the same day and help in completing the application is available as well. Business owners can also apply for a sellers permit by mail, but this process takes a little longer, so we suggest entrepreneurs take the time to do this in person.
Getting a sellers permit in California is free of charge and the application is only about two pages long. If you would like more information about how to get hold of a sellers permit or any other business document in your area, visit Business.gov.
Next week will discuss how to protect an entrepreneur’s intellectual property. Make sure you sign up for our RSS feed so you can stay informed!