# getting resellers license in california



## chonkymonky

hello all. hope everyone is having a great day so far. ok here's the deal...i need information on how to obtain a reseller's permit in California. i've googled it and still am not exactly sure on how to go about it. one place says that a ton of paperwork needs to be filled out and then i have to attend a seminar..and then another place tells me i can just fill out a simple one page application online and submit it to my local chamber of commerce. i just need to hear it from someone that has done it. any information is greatly appreciated. thanks amigos/as. 
Miguel


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## mystysue

Here ya go... this page tells ya exactly what you have to do.. and its the california state web site..
You can download and print out and mail in.. or go in person and get yours..

Registration - Board of Equalization


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## shirtisan

I went to the State Board of Equalization filled out the paper work and was done it 1 hour or less.


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## hiGH

all the information you need is here California State Board of Equalization

take a look at the sample application.. it took me about 30 mins max.


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## chonkymonky

hey thanks a million guys. one more thing..once i have the resellers permit how is this gonna effect me as far as taxes is concerned? will things be any different?


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## snarley

Hi Miguel,

What do you mean when you say "as far as taxes is concerned? will things be any different?"

If you are talking about sales tax, it will be different, as you are required to collect sales tax for the rate in the county in which the sale takes place. If you are selling out of state it's not required.

If you are talking about Federal Income Tax you should consult your tax preparer.

Some cities in California require a business license or permit, you should check with the city that you conduct your business in.

Best wishes and good luck with your business.

Bill M


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## chonkymonky

hey Bill thanks for the good luck wishes..and yes i was reffering to income tax and how the permit would affect me when it came time to file. i was told by a friend that i would need to report my earnings every six months. also that if i didnt report anything, the government had the right to tax me for what they "felt" was an accurate amount of what i "probably" earned. anyways, it was all very confusing to me..i think because i was getting advice from the wrong people. that's why im glad this forum is here..you guys have cleared things up for me and pointed me in the right direction now. thnx again. 
Miguel


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## sunnydayz

Hi Miguel,
I am in southern california, san pedro. Even though I am in san pedro, I had to get a los angeles city tax certificate (also known as your los angeles business license) and also resellers permit. I do have to file my taxes every six months (which I am doing right now and completely confused because most of my sales are out of state). I had a company that does business filings do it for me. I believe I paid around $260.00, and that included my tax id, resellers permit and my dba. After I looked up how much they would cost individually, the price was not bad, and I did not have to worry about filling out papers and make sure I did everything properly. You might want to check into something like that as it makes things alot easier. Hope this info helps.

Bobbie


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## Moo Spot Prints

You'll have 2 separate taxes to keep track of. 

1. Income taxes. You're now running a business and will (most likely) have to fill out the appropriate tax forms (Schedule C?) when you do your personal taxes.

2. Sales tax. The state wants its cut from all of your sales. If you sell $100 worth of stuff, you'll have to send them $7.75 (7.75% - or whatever it is for your city). I just sent mine in. It's pretty simple. The Board sends you the forms to send in in June or Dec, depending on what fiscal cycle you're on). A lot of stuff is preprinted and I think I only had to put numbers into 6 places, sign it, and send it in with a check.


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## Moo Spot Prints

sunnydayz said:


> I had a company that does business filings do it for me. I believe I paid around $260.00, and that included my tax id, resellers permit and my dba. After I looked up how much they would cost individually, the price was not bad.


How much was that DBA??? The EIN is free and the resellers permit is also free. Did you also get a business license from the city?


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## sunnydayz

Yes, I got a los angeles city license , tax certificate, dba and resellers permit. Those were all of the items I needed to work in the city of los angeles. When I lived in redondo beach I did not need the city license or the tax certificate, but because I live in san pedro, it is unincorperated los angeles city, so it falls into city of los angeles. I found it was much easier to have a legal company do it all for me. When I priced what it would take to do the dba, with the filing and publishing, that alone came to around $100.00, plus the driving to downtown LA to file it, and anyone who knows downtown LA, knows what a pain it is to go there for anything haha. I dont remember exactly what the other fees were, but when I added it up, it came close to what I paid the company that did it for me. They were right in long beach and they mailed everything to me to sign, so I did not have to go anywhere to file, just stuck them in the mail. When I first hired them to do the paperwork for me, I did everything online and then they just mailed certain papers that actually had to have my signature, and I mailed them back. It was very easy and was done within two weeks, of course that is not including the time that the dba had to run in the paper. Hope this helps

Bobbie


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## mystysue

Heck just the ad in the paper to get your dba (it has to be a special ad in a certain section) was over $100. to run for the 4 weeks required. plus the time and gas and such.. our city licence we are in pasadena was over 100. .. so it all adds up..
of courese it has real benifits to have all the correct licences and such..


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## Moo Spot Prints

mystysue said:


> Heck just the ad in the paper to get your dba (it has to be a special ad in a certain section) was over $100. to run for the 4 weeks required. plus the time and gas and such.. our city licence we are in pasadena was over 100. .. so it all adds up..
> of courese it has real benifits to have all the correct licences and such..


$100 for the ad? wow. 

I just did a quick look at the OC register and they take care of the ad and filing it with the clerk. $53 for the ad and $25 for the county. My city (HB) charges about $80 for a business license. I don't think I need to go anywhere to file the forms.

Total cost for me will be about $160. + 4 stamps.


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## sunnydayz

Mystysue, it sounds like your fees were very similar to mine, is Pasadena also considered city of los angeles? I found it to be so much easier to just have someone else do the work for me that knew what I needed and knew how to do it quickly. 

Bobbie


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## Thao1mage

Have any of you had to pay for a Home Occupant Permit??? I checked the zoning regulations today, and they said I had to apply for a Home Occupant Permit worth $77.00.... hmmmm is it really required... all I am doing at home is packaging stuff to take to fed ex or UPS for shipment.


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## sunnydayz

I didnt need that, actually they never asked. I think as long as you tell them you are doing all business online and that customers dont come to your home then you shouldnt need it.


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## Thao1mage

That's the city for you... they'll try to cheat you out of every penny that you have... thanks bobbie...


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## Rodney

Thao1mage said:


> That's the city for you... they'll try to cheat you out of every penny that you have... thanks bobbie...


Easy there. Some people do actually do business out of their homes and have customers come to the door.

That's why the fee is there. 

They aren't trying to cheat you, but they need to make sure what type of business you're doing to decide whether or not you need to pay the fee.


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## Thao1mage

I was being sarcastic... anyhow... congrats to you and your fiancee? or wife? girlfriend? not sure... but congrats anyways... my wife and I are having a boy in late march or early april... it will be here in no time... I'm playing the waiting game right now... tick tock tick tock... can't wait to get my seller's permit.


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## Rodney

Thao1mage said:


> I was being sarcastic... anyhow... congrats to you and your fiancee? or wife? girlfriend? not sure... but congrats anyways... my wife and I are having a boy in late march or early april... it will be here in no time... I'm playing the waiting game right now... tick tock tick tock... can't wait to get my seller's permit.


Congrats to you too!


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## shadowman

Hi Sunnydayz, 
I live in Los Angeles too and I am just starting out and trying to get my business propperly established. So I was wondering what was the name/website of the company you used to get the los angeles city license , tax certificate, dba and resellers permit for $260.

Thanks!


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## DaisyK

My first year's sales tax was requested to file quarterly, not every six months. You may need to double check. After the first year, I file annually.


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## JPD

When you go in to get your resale permit, *do not* tell them that you plan to sell $3000.00+ a month (or some other inflated number), no matter how excited you are about your product. Walk in and be _*very*_ conservative with your numbers. By doing that, you will most likely only have to file once a year and not have to give a deposit.

Eric


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## sunnydayz

I agree Eric, I think I put a really minimal amount and I only file once a year, every july.


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## deChez

snarley said:


> If you are talking about sales tax, it will be different, as you are required to collect sales tax for the rate in the county in which the sale takes place. If you are selling out of state it's not required.
> 
> 
> Bill M


Actually, California requires that you collect sales tax on any sale. Their position is that regardless of where the merchandise is being shipped, the sale was made in California.

As for sales that are being shipped within California, you are not required to charge the rate for the county the merchandise is being shipped to; you can choose to always use the rate of the county in which you are doing business.


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## sunnydayz

That is not correct Michele, the state does not require you to collect for sales outside the state as they do not collect taxes for other states. If you do collect for other states then you are required to pay each state the tax on that sale. I did this when I first started and it created a major hassle for me when I filed my taxes. I was informed that I should not collect for out of state sales. That leaves the purchaser of the item in the other state responsible for the item they did not pay taxes for, and lets you off the hook of having to pay that tax to the state in question.


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## deChez

sunnydayz said:


> That is not correct Michele, the state does not require you to collect for sales outside the state as they do not collect taxes for other states. If you do collect for other states then you are required to pay each state the tax on that sale. I did this when I first started and it created a major hassle for me when I filed my taxes. I was informed that I should not collect for out of state sales. That leaves the purchaser of the item in the other state responsible for the item they did not pay taxes for, and lets you off the hook of having to pay that tax to the state in question.


You are indeed correct. I was using the booklet I received when I first got my resale license as reference. When I checked the board of equalization site just now, I see that this rule has changed.

Thanks for schooling me...makes my life easier.


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## sunnydayz

No Problem  Thats what we are all here for together  It does get confusing as they are constantly changing rules around.


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## p3squared

I ran across this post and thought I would offer what I know. I have been a municipality worker for over 23 years and know a thing or two on that issue. Home occupation permits are required whether or not you have traffic coming to your home. In all actuality - home occupations permits do not allow for additional traffic to your home. If you were to go to the City office you would most likely find that applicants write they have no one coming to their home - that if they had any business - they go to the clients house. The home occupation permit puts the property owner on record as to the business activities at the property. Remember that old saying, one bad apple ruins the bunch? The home occupation permit puts the property owner on record and relieves municipalities of any upcoming issues with illicit discharges (chemicals into the sewer or storm system) in addition to any other potential legal issues. You would be surprised at the types of full scale operations that obviously don't belong in a single family house that some people try to do. I have seen some pretty outlandish things. In any event, it isn't to take any one for a ride or anything. Anyway, thanks for the space to write.

Jamie
P3


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## sunnydayz

Hi Jamie,

when I applied for my city license, they asked me what I would be doing and I was very honest telling them, I would be doing printing and garment embelishments. They never questioned anything about it and gave me my license, they even had the fire department come and do a safety check to make sure everything was up to code. They also never asked if I have customers coming either. I think it also depends on the zoning for your particular area. I really think it depends on the county you are in what laws apply. As I obviously am not in oakland, I think my city requirements may be different then yours. Its always good to know what the rules are in your own city, as they differ from place to place.


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## p3squared

I whole heartedly agree and know that things vary slightly from town to town or city to city. It is also my experience that home occupation permits are sort of the "less glorious work" to some and there are those that get lucky because no one asks (always a great one to fall back on). For the most part, everything is pretty similar. The Los Angeles area tends to be a bit different than the rest of California (just a running joke amongst my friends who came from working down there and are there now  ) but the point I was hoping to make is that the requirement (or lack there of) isn't necessarily an attempted steal. Been doing my line of work and enforcement way too long to make assumptions (there is a saying that goes along with that too - haha). Have a great evening. I'm not sure where you got that I was in Oakland, my husband is right now paving the airport run ways, but we are not 

Jamie 
P3


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## sunnydayz

Ohhh haha I seen oakley in your signature and thought it said oakland  Ok so my eyes are not paying close enough attention tonight  Where is oakley at anyways?


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## p3squared

It's okay, getting late and my eyes are pretty tired. Oakley is on the Sacramento Delta where the river feeds into the Martinez Straits. So coming from Oakland, 80 to 680N, 242N, 4E to Oakley. Or another way would be Oakland, then Berkeley, the Orinda, then Lafayette, then Walnut Creek, then Concord, then Pittsburg, then Antioch, the little town of Oakley. We are a stones throw from the water. Couldn't image living any where else.


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## sunnydayz

Ok so you are not too far from oakland then  Hey I was close (just kidding  ). Hey Rodney lives near Sacremento I think.


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## T-Rated

hi...i'm new here and starting a business in manhattan beach...could you please forward me the contact number for the company you used to get your DBA, Business Tax ID and Resellers License...sounds like a great one-stop -shop solution....thank you in advance

-Chris
T-Rated


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## sunnydayz

Hi Chris yes, I did get your pm  I just need to look for it and then I will post a link for you  Sorry it took so long to respond.


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## sunnydayz

This is the place I used. I believe it cost me around $265 and that included my dba, publishing of the dba, resellers certificate and city business license. Business License, Tax Id Number, DBA, Start Small Business Licenses. It made it really easy doing it this way for me. I think I had to go to their office once to drop off papers I had signed, and it was right in long beach so really easy to get there. Hope this helps


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## T-Rated

thanks...sorry for the double message...i'm new on here and wasn't sure if the first message went through...


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## sunnydayz

yea it did I just had to find the info  Sorry I didnt respond.


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## Robert H

This is a great post about the inner workings of taxing! I am eagerly interested in using the service you did to finish my filings for San Diego County, CA.

Thank you!


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## Robert H

sunnydayz said:


> This is the place I used. I believe it cost me around $265 and that included my dba, publishing of the dba, resellers certificate and city business license. Business License, Tax Id Number, DBA, Start Small Business Licenses. It made it really easy doing it this way for me. I think I had to go to their office once to drop off papers I had signed, and it was right in long beach so really easy to get there. Hope this helps


I am looking into using this service because it is cheap and will save me the headache. Only one issue, Sole or LLC for a clothing company (not a screen printer)?


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## sunnydayz

It depends on if you have employees. If it is just you then sole proprietor is fine, if you have employees then you would need the LLC


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## suju

Hi
I'm not sure if my question fits here, but I couldn't decide where to ask it. I know if you're selling t-shirts to someone that is going to resell it, you don't have to collect tax as long as you get their resale number. But does anyone know about putting the names on the back of baseball uniforms? I'm charging a team $3.60 per name to put on vinyl names for their baseball uniform, but do I charge sales tax on that since they are the end user? What does everyone do?
Thanks!


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## Screenanator

suju said:


> Hi
> I'm not sure if my question fits here, but I couldn't decide where to ask it. I know if you're selling t-shirts to someone that is going to resell it, you don't have to collect tax as long as you get their resale number. But does anyone know about putting the names on the back of baseball uniforms? I'm charging a team $3.60 per name to put on vinyl names for their baseball uniform, but do I charge sales tax on that since they are the end user? What does everyone do?
> Thanks!


.....tax it !!!!!!!!....tax it !!!!...unless their organization has a re-sale number.


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## TimeWithoutTheE

I am a bit confused on one thing.
If someone is just starting up a line and wants to do it legally, Do they need a LLC or SP and the business license, resell license, and tax id?
Does having a LLC take care of any of this or no?


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## TheTrestle

Hi im starting a online business and need a professional website for a online store. what companies would you guys recomend for me to check out to build a safe and professional site? thanks for your time.


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## alliedapparel

Don't fill it out if you don't have a retail store of some sort. Honestly, filing this form is just going to give you a headache. The IRS is going to expect a tax check every month in the mail. If you fail to mail them money (whether it's due to you forgetting, or you not having any sales), they will fine you, and possibly audit you. Unless you're working out of a physical location, I'd say avoid filling one out.


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