If you are starting a new business in California, or just want to do some selling online, you will need to get a California tax ID number. They are very simple to get because it is the way that the government collects taxes from you. The good news about a California tax ID number is that it also opens doors to wholesalers and drop shippers. If you have a sellers permit or tax ID number, many times you can buy products without paying taxes initially, at wholesale prices.
Instructions
1. You can either file online and mail the forms in or you can do it in person. If time is a factor, apply in person. Visit your local state board of equalization office. You can find the closest one by visiting the government's website.
2. Tell them you need to file for a seller's permit and they will hand the correct forms to you. There is no fee for getting a tax ID. It helps them collect taxes from your sales, so they want to make it easy for you.
3. Fill out the forms correctly. It will only take approximately 10 minutes to fill them out. Make sure you have a reference phone number and address to put down. You don't need a Fictitious business name but you will want to have a name that you will use.
4. After you are done, you will be issued a California tax ID in about 10 minutes because the computer can process it instantly. If you decide to mail it in, it will obviously take a little while longer. The state tax id will be able to be used immediately.
5. In California, if you are doing internet sales, you only have to collect taxes on sales made in the state of California. This might change in the future however. The person who issues you your tax ID number will go over all of the rules for filing taxes and such at the time of issue.
Tips Warnings
Think of your state tax ID as the social security number for your business.
Tags: california, number, business California, collect taxes, taxes from
