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Dec 18, 2024

What are the critical steps to register for sales tax after acquiring a business in California?

Ready to automate your sales tax?

Ready to automate your sales tax?

Ready to automate your sales tax?

Critical steps to register for sales tax after acquiring a business in California include:

  1. Obtain an EIN: Ensure the acquired business has a Federal Employer Identification Number (EIN) from the IRS, which is necessary for tax purposes.

  2. 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.

  3. 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.

  4. Provide Owner/Officer Information: Include personal information for primary owners or officers of the business.

  5. Detail the Acquired Business: Provide specifics about the existing business, such as previous permit numbers and acquisition date.

  6. Submit the Application: Submit the completed seller’s permit application online through the CDTFA website or by mail.

  7. Pay Applicable Fees: While registration is free, ensure any other applicable fees for licenses or permits are paid.

  8. Receive a Seller’s Permit: Upon approval, receive the seller’s permit, authorizing the collection and remittance of sales tax.

  9. Begin Tax Collection and Remittance: Start collecting sales tax on taxable sales and remit the collected taxes to the CDTFA according to filing schedules.

  10. 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.

Ready to automate your sales tax?

Ready to automate your sales tax?

Ready to automate your sales tax?

Ready to automate your sales tax?