Permits

California Department of Tax and Fee Administration (CDTFA)

The California Department of Tax and Fee Administration (CDTFA) administers California’s sales and use, fuel, tobacco, alcohol, and cannabis taxes, as well as a variety of other taxes and fees. Tax programs administered by CDTFA are concentrated in two general areas – sales and use tax, and special taxes and fees.

Seller’s Permits

Seller’s permits are required for businesses engaged in California that intend to sell or lease tangible personal property that would be subject to sales tax if sold at retail. The seller’s permit requirement applies to:

Corporations, Individuals, Limited Liability Companies (LLCs), Limited Liability Partnerships (LLPs), Limited Partnerships (LPs), Partnerships, Married Co-Partnerships, Registered Domestic Partnerships, and Organizations.

CDTFA has published a guidebook on the California seller’s permit, which can be found online here.

For additional assistance with obtaining a seller’s permit and understanding the responsibilities associated with one, CDTFA offers a Taxpayer Educational Consultation Program as well as other resources to provide support.

Find these resources in the CDTFA Guide for New Permit and License Holders.

Sales & Use Tax

If you will be selling tangible property, consult the California Department of Tax and Fee Administration (CDTFA) for a Seller’s Permit. You may also need a Resale Certificate.

More information on the Resale Certificate can be found online at cdtfa.ca.gov.

Cannabis Tax Permit

Distributors, and microbusinesses licensed to act as a distributor, of cannabis and cannabis products must obtain a cannabis tax permit. This permit is in addition to the required seller’s permit.

For additional assistance with obtaining a cannabis tax permit and understanding the responsibilities associated with one, CDTFA offers a Taxpayer Educational Consultation Program as well as other resources to provide support.

Find these resources in the CDTFA Tax Guide for Cannabis Businesses.

More Information

For more information on these permits administered by CDTFA, visit their Online Services portal.

California Secretary of State (SOS) Filing

The Secretary of State’s Office supports businesses by registering and authenticating business entities and trademarks and enabling secured creditors to protect their financial interests. While not necessary for sole proprietors, if the business is planning to form a corporation, limited liability company, or limited partnership; they must file with the SOS.

To learn more about business entity filing with the Secretary of State, visit sos.ca.gov.

Franchise Tax Board (FTB)

The California Franchise Tax Board (FTB) collects state personal income tax and corporate income tax of California.

Income Taxes – All businesses are required to file state income tax with the Franchise Tax Board (FTB) and federal taxes with the Internal Revenue Service (IRS).

Learn more about filing state income tax with the FTB at ftb.ca.gov.

Learn more about filing federal income tax with the IRS at irs.gov.

Employment Development Department (EDD)

The Employment Development Department administers the Unemployment Insurance and State Disability Insurance programs. EDD also conducts audits and collects payroll taxes and maintains employment records for millions of California workers.

If you operate a business and employ one or more employees, you must register as an employer with the Employment Development Department (EDD) when you pay wages in excess of $100 in a calendar quarter. If you are a household employer of one or more household workers, you must register with the EDD when you pay cash wages of $750 or more in a calendar quarter.

Learn more about employer registration requirements and payroll taxes at edd.ca.gov.

Department of Industrial Relations (DIR)

The California Department of Industrial Relations (DIR) issues permits, licenses, certifications, and registrations.

The two license issuing agencies within the Department of Industrial Relations, Cal/OSHA and the Labor Commissioner’s Office, issue permits for the following types of work:

• Aerial Passenger Tramways
• Amusement Rides
• Child Performer Services
• Construction Activities
• Elevators and Conveyances
• Entertainment Work for Minors
• Industrial Homeworkers
• Mining and Tunneling
• Pressure Vessel Operation
• Tower Crane Operation

For assistance with obtaining the permits required for these business activities, please visit dir.ca.gov.

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