Selling on Amazon: Do I Need a Business License to Sell on Amazon in CA? (2024)

FAQs

Selling on Amazon: Do I Need a Business License to Sell on Amazon in CA? ›

If you are a California resident who regularly sells tangible items over the internet, then you need a seller's permit for your online business. Any individual or business who makes more than two online sales of tangible property during any 12-month period must first obtain a seller permit from the state of California.

If you are a California resident who regularly sells tangible items over the internet, then you need a seller's permit for your online business. Any individual or business who makes more than two online sales of tangible property during any 12-month period must first obtain a seller permit from the state of California.

Amazon is open to individuals, not just big businesses. Getting started can feel challenging, so you can begin as an individual seller to test if you can create a successful and sustainable e-commerce venture. It's a low-cost way to start, and all you need is a great product and an individual seller account on Amazon.

You can create an Amazon seller account, start hunting for products, and sell without an LLC. However, forming an LLC can be one of the best decisions you can make for your Amazon business, as it offers several advantages and protections that can benefit your business in the long run.

There is no charge for a seller's permit. However, depending on your type of business and expected taxable sales, we may ask you for a security deposit. The CDTFA may be able to issue your permit the same day.

Starting a business out of your home by selling goods on Amazon in California does require you to obtain the right permits, licenses, certificates, and a TIN. It is a good idea to verify exactly which ones you need before selling on Amazon.

Seller's permits

Among the 45 states with sales tax, all except Florida and Missouri now require online sellers to obtain a seller's permit or sales and use tax permit. In most of these states, however, the requirement applies to businesses with taxable sales of at least $100,000 or 200 transactions within the state.

LLC, or limited liability company, is a type of legal entity. Generally, it is not necessary to register a company to sell on Amazon. If you haven't registered a legal entity and started selling on Amazon, your business is considered a sole proprietorship.

Amazon sellers will need an EIN number to file taxes and complete other tax forms on the IRS website. As an Amazon seller, you must provide this EIN to comply with Amazon's policies, conduct business on the platform, and have proceeds paid into your bank account.

Is a California seller's permit the same as a business license? ›

A business permit is not the same thing as a seller's permit. A business license permits you to conduct business. A seller's permit allows you to sell goods or other property. If you start a business that sells goods, you will most likely need both documents.

Due to our direct electronic state filing methods we can have your seller's permit to you in as little as a few hours.

Many California counties require businesses to obtain a business operating license before doing business in the county. This requirement applies to all businesses, including one-person, home-based operations. Many cities require a business license in addition to the county license.

If your company sells products that qualify to be taxed, most states require you to obtain a seller's permit or vendor's license — whether your online store has a physical location or is online-only. You'll need to collect sales tax, which is what a seller's permit allows you to do.

Certain states, counties and localities have stricter regulations regarding who can sell online. For example, California requires you to register and have a seller's permit to sell on Etsy even before you make the first sale.

Note that you don't need an LLC to start or run your online business. You can form one at any time or not at all, but forming an LLC would just be smarter risk management once you're up and running. There are a few points of confusion around LLCs.

Your Online Business Needs a Business License

Whether online or brick-and-mortar, every business must have the proper licenses to do business in each state. The legal requirements for business licenses vary from state to state. You must become familiar with the laws of the area where you are operating a business.