What are the step-by-step requirements for a business to obtain a seller's permit from the California Department of Tax and Fee Administration (CDTFA)?

To obtain a California seller's permit, you must register your business with the California Department of Tax and Fee Administration (CDTFA) by providing detailed information about your business operations. There is no fee to obtain the permit itself. Here are the steps to get your seller's permit: Step 1: Gather Required Information Before you begin the application, collect all necessary documents and information. This includes your Social Security Number, driver's license number, Federal Employer Identification Number (FEIN) if you have one, corporate or LLC entity numbers from the Secretary of State, bank account details, and the names and addresses of your primary suppliers. Step 2: Go to the CDTFA Website Navigate to the CDTFA's online registration portal at www.cdtfa.ca.gov. This is the fastest and most common way to apply. You can also apply in person at a CDTFA field office, but online registration is recommended. Step 3: Complete the Online Application Follow the prompts to register a new business activity. You will need to provide the information gathered in Step 1. The application will ask for details about your business structure (sole proprietor, corporation, etc.), what you sell, and your projected monthly sales figures. Be prepared to provide this information accurately. Step 4: Submit the Application and Await Review Once you submit the completed application, the CDTFA will review it. If your application is complete and straightforward, you may receive your permit number instantly or within a few business days. The official permit document will be mailed to you. Important Details and Nuances: As per California Revenue and Taxation Code Section 6701, the CDTFA may require you to post a security deposit. This is typically required for businesses with a prior history of tax non-compliance or for certain business types, but it is not required for every applicant. Under Section 6067, you must prominently display your seller's permit at your place of business. Warnings and Limitations: Operating a business that requires a seller's permit without one can lead to significant fines and penalties. This permit authorizes you to collect sales tax from customers; you are then responsible for reporting and remitting that tax to the state on a regular basis. This is general information and does not constitute legal advice. For complex situations, such as those involving multiple locations or prior tax issues, consult with a qualified California attorney.