The California Seller's Permit: What You Need to Know

Each week, our experts get lots of questions about California’s seller’s permit. How do you get one? Who needs one? What does the application ask for? Is it separate from every other permit and license? There seems to be a lot of confusion out there surrounding the seller’s permit, which is required not just for cannabis operators. With this guide, we hope to answer many of these questions and provide some insight into how the CDTFA evaluates the cannabis seller’s permit.

California Seller’s Permit: Required Information

If you are doing business in California and intend to sell or lease tangible personal property subject to sales tax sold at retail, you are required to have a seller's permit. Likewise, you have to prominently display your permit at your place of business. Basically, anyone working in the cannabis market in California needs a seller’s permit.
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For a California state seller’s permit, you must apply online with the following details:

• Driver License
• Social Security Number (SSN)
• Email Address
• Supplier Name/Address
• Personal References
• Bookkeeper/Accountant Address and Phone Number (if applicable)
• FEIN (Partnership, Association, Organization, Trust, Estate, Joint Venture, Receivership/Fiduciary, Unincorporated Business Organization, Limited Liability Partnership, Limited Partnership, Limited Liability Corporation)
• California Secretary of State Entity Number (Limited Liability Partnership, Limited Partnership, Limited Liability Corporation)
• Agency Name (Federal, State, and Local Government)
• Name, address and phone number of the person(s) who maintains the books and records
• Projected monthly sales
• Projected monthly taxable sales
• Products to be sold

As a cannabis operator, you also need to submit:

• Distributor License Number (not required)
• Cannabis License Number

If you have a business partner or if your cannabis operation is managed by corporate officers or limited liability company managers or partners, you will be asked to include some of their information in addition to your own.

The seller’s permit is different from your cannabis tax permit or cannabis business license. If you are a distributor of cannabis and cannabis products, you must obtain a SEPARATE cannabis tax permit in addition to your seller’s permit.

You can apply for your seller’s permit on an open basis. There is no deadline or application window to apply for your seller’s permit. The online system guides you through the whole process and lets you know what documents you need to submit. There are also a handful of field offices you can visit where the CDTFA will walk you through the application process. If you go in-person, you get your permit right when you finish applying. Unlike the cannabis licenses, you are not being ranked against other cannabis companies.

However, you must apply for a cannabis business permit before attaining your seller’s permit. The seller’s permit application will ask you for a cannabis license number. Start with your state and local licenses before spending the time and resources to obtain your seller’s permit.

For help with any licensing matter, get in touch with our experts.