Quick answer
A seller's permit is a state registration that lets a business sell taxable goods, collect sales tax from buyers and pay it to the state. You generally need one if your state has a sales tax and you sell taxable goods there: California requires it from anyone engaged in business in California who intends to sell or lease goods that would ordinarily be subject to sales tax, and charges no fee for it. Rules vary by state and city, and this page is general information, not legal or tax advice.
Nation, an AI store builder, publishes this page. It is pre-launch, with a waitlist on withnation.ai, and no product is ranked or compared here. See where Nation fits.
What a seller's permit is
A seller's permit is a registration with your state's tax agency that gives you an account to report and pay the sales tax you collect from buyers. States use different names for it. California calls it a seller's permit, Texas a sales and use tax permit, New York a Certificate of Authority, and Washington ties it to the state business license from its Department of Revenue. In New York, the certificate gives you the right to collect tax on taxable sales and to issue and accept most New York sales tax exemption certificates.
The permit is about sales tax, so whether you need one depends on two things: whether your state has a sales tax, and whether what you sell is taxable there. In California, retail sales of tangible personal property are generally subject to sales tax, with furniture, giftware, toys, antiques and clothing given as examples. In New York, sales of tangible personal property are taxable unless they are specifically exempt, while sales of services are generally exempt unless they are specifically taxable.
Who needs a seller's permit
California, Texas and New York use similar tests: you are doing business in the state, and you sell goods that are taxable there.
California requires a seller's permit from anyone engaged in business in California who intends to sell or lease goods that would ordinarily be subject to sales tax. The rule covers individuals as well as corporations, partnerships and LLCs, and both wholesalers and retailers. Texas requires a sales and use tax permit from anyone engaged in business in Texas who sells tangible personal property in Texas. New York requires you to register if you sell taxable goods, whether from a store, your home, the internet, a cart or a craft fair, and you meet one of its listed conditions, the first being that you maintain a place of business in the state, such as a store, office or warehouse.
Working from home or part time does not change this. In New York, the duty to register depends on what you sell, not on your location or how many hours you work. New York's examples of taxable craft goods include knitted and crocheted items, homemade soaps and candles, holiday decorations, woodworking projects and homemade candy.
Custom work counts too. California's example is a ring made for a specific customer: the total charge, including labor, is taxable.
Occasional sellers can be an exception, and the line differs by state. In California, you generally need a seller's permit once you make three or more taxable sales in a 12-month period. In New York, people who make occasional sales from home, with no plan to sell regularly as a business, do not have to register, as long as the sales are made from home and the buyer picks up the item there. Even then, you must still collect sales tax from the buyer and send it to the state if the item is taxable. A market stall does not count as a casual sale: in New York, selling taxable items at a craft fair only once a year still requires registration.
Do you need a seller's permit to sell online?
Usually yes, if you sell taxable goods and your business is based in a state with a sales tax. Selling from your own website does not change the rule. New York's registration requirement applies to online sales too: this includes items sold through online auctions and other websites.
Marketplaces change who collects the tax, and in some states whether you need a permit at all. In Texas, marketplace providers doing business in the state must collect and remit sales tax on all sales made through the marketplace. Even so, if you are a Texas seller and sell through a marketplace, you still need a Texas tax permit and must file your sales tax returns on time, even if your only sales are through a marketplace provider. New York says that marketplace sellers who meet its registration rules must register and file returns even if the marketplace remits the tax on their sales.
California is different. If all your retail sales of merchandise are facilitated by a marketplace facilitator registered with the CDTFA, you are not required to register for a seller's permit. Selling from your own site or at markets as well brings back the regular rule.
Sellers based in another state face a separate test: they must register once their sales into the state pass a threshold.
Texas adds an exception for sellers who use only marketplaces: out-of-state sellers who sell only through a marketplace that has certified it collects the tax do not need a Texas permit. Check each state you ship to, because thresholds and marketplace rules differ.
Seller's permit rules in five states
The table shows how five state tax agencies handle the same registration. It is a sample, not a full list, so check your own state's revenue department.
In Washington, you register with the Department of Revenue and get a business license if any listed condition applies. Collecting sales tax is one condition; another is gross income of $12,000 per year or more.
How to get a seller's permit
The examples come from the California, Texas and New York tax agencies.
Check that what you sell is taxable
Look up whether your products are taxable in your state. Goods usually are in California and New York, with exceptions: New York lists selling baked goods among home businesses that do not make taxable sales. If you are unsure, ask your state tax agency.
Find your state's tax agency
The permit comes from your state revenue or tax department, not the IRS. The SBA says you have to research your own state, county and city regulations.
Have your details ready
Applications ask for details about the owners and the business. Texas's online application, for example, asks for the sole owner's Social Security number and a North American Industrial Classification System (NAICS) code, which every business needs. In Texas, you can apply without a federal identification number.
Apply before your first sale
Apply on your state tax agency's website. California says online registration is free. New York asks you to register at least 20 days before you begin business, and you cannot legally make taxable sales until you have received your Certificate of Authority. Selling without one carries a penalty: in New York, operating without a valid certificate can cost up to $500 for the first day, plus up to $200 per day after that, with a maximum of $10,000.
Display the permit
Post the permit where you sell. California says to display it prominently at your place of business. New York may charge a $50 penalty if you do not display its Certificate of Authority, and sellers with no permanent location can attach it to the truck, cart, wagon or stand they sell from.
File returns on schedule
Once registered, you file a sales tax return for each filing period. In Texas, you must file a return every filing period, even with no taxable sales, and New York says you are considered in business for sales tax purposes even if you never make a sale.
Temporary permits for markets and craft fairs
Selling at a pop-up, a holiday market or a craft fair usually needs a permit too. California is direct about it: anyone selling new or handcrafted items, or used items bought to resell, needs a permit, even for temporary sales.
California offers a temporary seller's permit for sellers without a permanent location. It covers a selling period of 90 days or less at one location, it is free, and you can apply up to 90 days before your start date. If you already hold a regular permit, you register a sub-permit for each temporary location instead of a temporary permit.
New York works the other way for events: sellers at craft shows, antique shows, flea markets and sporting events need a regular Certificate of Authority, even for occasional sales. Its temporary certificate is for businesses that expect taxable sales for no more than two consecutive sales tax quarters in any 12-month period.
What changes once you have a permit
With a permit, you add sales tax to taxable sales and pay it to the state with each return. California requires permit holders to report and pay sales and use taxes and keep adequate records. Texas also requires you to post your permit at your place of business, collect sales tax on all taxable sales, and pay sales and use tax on all taxable purchases. It asks you to keep records for a minimum of four years.
When you buy goods to resell, you can give the supplier a resale certificate instead of paying sales tax on them. In California, a seller who accepts a valid resale certificate in good faith does not owe tax on that sale, and resale certificates also cover materials that will become a physical part of an item held for resale. In Texas, items bought for resale are exempt when the seller accepts a properly completed resale certificate. California also says purchasers should not use a resale certificate for products they will use rather than sell.
Permits are tied to the owner and the location. California says you may need a separate permit for each place of business, and the permit is valid only while you are actively in business as a seller. In Texas, a change of ownership, such as a sole proprietor incorporating the business, needs a new permit.
Seller's permit vs business license
A seller's permit and a business license are usually separate. The permit is a state sales tax registration. A business license, where your city or county requires one, is a local permission to operate. In California, a seller's permit is not a business license, which comes separately from your city or county. Washington is the exception among the examples above, because there you register with the Department of Revenue and get the state business license together.
Where Nation fits
Nation
Category: an AI store builder
Nation says one description of what you make builds the store, then agents handle orders, customers and delivery and run ads, content and social posts, with you approving the work. This guide is about a state tax registration.
Limits today
- Status: pre-launch, with a waitlist on withnation.ai.
- Pricing and fees: not announced yet.
- Shopper marketplace: no shopper marketplace has been announced.
- Track record: no independent reviews or public stores yet.
Nation publishes this page. The rules come from state tax agency pages, and no product is ranked or compared here.
Describe what you makeQuestions about seller's permits
Do I need a seller's permit to sell online?
You usually need a seller's permit to sell taxable goods online if your business is in a state with a sales tax. New York says its registration rule covers online sales: this includes items sold through online auctions and other websites. Out-of-state sellers can need a Texas permit once they have $500,000 or more in Texas revenue in the past 12 months.
How much does a seller's permit cost?
The cost of a seller's permit depends on the state. California charges no fee for its seller's permit, though the CDTFA may ask for a security deposit to cover unpaid taxes. Texas charges no fee, though a security bond may be required. In Washington, where registration comes with the business license, the application fee varies. Check your own state's page.
Do I need a seller's permit to sell at a craft fair?
You usually need a seller's permit to sell taxable goods at a craft fair. In California, anyone selling new or handcrafted items, or used items bought to resell, needs a permit, even for temporary sales, and a temporary permit is free. In New York, sellers at craft shows, antique shows, flea markets and sporting events need a regular Certificate of Authority, even for occasional sales.
Do I need a seller's permit if I only sell on Etsy or Amazon?
Whether you need a seller's permit for Etsy or Amazon sales depends on your state. New York says marketplace sellers who meet its rules must register and file returns even if the marketplace remits the tax on their sales. In California, if all your retail sales of merchandise are facilitated by a marketplace facilitator registered with the CDTFA, you are not required to register for a seller's permit.