This is a guide to getting a Resale Certificate in California. Learn how to get a Resale Certificate in California in this comprehensive guide.

What is a Resale Certificate?

A resale certificate, also known as a reseller’s permit and reseller’s license, is an important business document that helps you buy goods from a wholesaler without paying sales tax. 

If you are planning to start a business by selling your products, there is a great opportunity for you. You can get a resale certificate that allows you to buy directly from the wholesaler without paying sales tax.

A resale certificate allows you to buy eligible items tax-free for resale at your business. For example, If you buy a bunch of watches with the intent of reselling them, You can show your resale certificate to the state and they won’t charge you. 

To obtain a resale certificate, you have to register with the state, paying applicable fees. Once you’re in the system, it is much easier to buy wholesale items at wholesale prices. 

The California Department of Tax and Fee Administration requires that all businesses that are selling products or providing taxable services to consumers in California must be registered for a California Seller’s Permit.

get a Resale Certificate in California

Is a resale certificate the same as a sales tax ID?

These two forms are often incorrectly referred to as the same thing, but they are two separate documents. The Sales Tax Permit provides a business to sell and collect sales tax from taxable products. On the other hand, a Resale Certificate helps the retailer buy goods from a wholesaler without paying sales tax. 

get a Resale Certificate in California

How to Get a Resale Certificate in California

The California Seller’s Permit is the state-issued license that allows you to sell products in the state of California. If you are going to be operating a retail business, you must complete the required steps to obtain a seller’s permit in California.

Before you apply for a resale certificate, make sure you have a business register in the state of California. Registering the business in California means filing your Article of Organization and applying for a Federal Tax ID number.

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BOE-230 Resale Certificate Fillable Form

How to fill out the California Resale Certificate – Form BOE-230

Use this form to register with us and obtain a BOE-230 Resale Certificate. There are three parts to the form. The first part is a certificate of a registration number which will be assigned to your business by the California State Board of Equalization.

The second part is the BOE-230 Resale Certificate, which will show this number as well as your business name, address, and phone number. 

This form must be given to anyone who buys items from you in order for them to show that they have paid sales tax on their purchases.

There are five steps for filling out the BOE-230 California Resale Certificate:

  1. Download the California Resale Certificate Form BOE-230 from the California Department of Tax and Fee Administration Website
  2. Enter the seller’s sales tax permit number
  3. Explain the business activities of the seller
  4. Enter the name of the seller
  5. Explain the property being bought for resale. Make sure to be clear and use either a detailed list or a general description.
  6. Enter the name, signature, address, and phone number of the purchaser.

Conclusion

In this complete guide, I will tell you what is Resale Certificate, what it is used for, how to get a Resale Certificate in California. I hope this guide finds helpful for you.