Fremont, CA asked in Business Formation for California

Q: Selling on marketplace facilitators in California

Are any licences/ permits required to start selling tangible goods on Marketplace Facilitators as an individual in California, provided all sales are of tangible goods and all transanctions are facilitated by the marketplace facilitators platform who is already registered with CDTFA.

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James L. Arrasmith
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Answered

A: In California, if you are selling tangible goods on a marketplace facilitator’s platform, the platform itself is responsible for collecting and remitting sales tax on your behalf. Since the marketplace facilitator is already registered with the California Department of Tax and Fee Administration (CDTFA), you generally don’t need to worry about handling sales tax yourself. However, you should still keep detailed records of your transactions for your own tax reporting and filing purposes.

That said, depending on the type of goods you sell, certain licenses or permits might still be required. For example, if you're selling items like alcohol or firearms, specific permits are necessary. You’ll want to check the requirements based on your specific products to ensure compliance.

While the marketplace platform covers most sales tax responsibilities, you may also need a seller’s permit from the CDTFA if you make sales outside the marketplace or directly to consumers. It’s important to confirm your obligations to avoid any future issues with tax authorities.

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