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Dec 18, 2024
What are the critical steps to register for sales tax after acquiring a business in California?
Critical steps to register for sales tax after acquiring a business in California include:
Obtain an EIN: Ensure the acquired business has a Federal Employer Identification Number (EIN) from the IRS, which is necessary for tax purposes.
Register with the California Secretary of State: If the business is a corporation, LLC, LLP, or partnership, register the business entity with the California Secretary of State.
Complete the Sales Tax Registration Application: Fill out the seller’s permit application with detailed business information, including the business name, address, type, and ownership details.
Provide Owner/Officer Information: Include personal information for primary owners or officers of the business.
Detail the Acquired Business: Provide specifics about the existing business, such as previous permit numbers and acquisition date.
Submit the Application: Submit the completed seller’s permit application online through the CDTFA website or by mail.
Pay Applicable Fees: While registration is free, ensure any other applicable fees for licenses or permits are paid.
Receive a Seller’s Permit: Upon approval, receive the seller’s permit, authorizing the collection and remittance of sales tax.
Begin Tax Collection and Remittance: Start collecting sales tax on taxable sales and remit the collected taxes to the CDTFA according to filing schedules.
Maintain Compliance: Keep accurate records, stay updated on tax rate changes, and adhere to filing deadlines to ensure ongoing compliance with California’s sales tax regulations.
Following these steps ensures a smooth transition in sales tax responsibilities and compliance after acquiring a business in California.



