How do I become tax-exempt in California?

There are 2 ways to get tax-exempt status in California:

Exemption Application (Form 3500) Download the form. Determine your exemption type , complete, print, and mail your application.
Submission of Exemption Request (Form 3500A) If you have a federal determination letter:

Is a seller’s permit the same as a tax-exempt certificate in California?

A seller’s permit provides a business with authority to make sales inside California. In contrast a resale certificate is a form that is provided from a buyer to a seller to support the exempt nature of a sale for resale that would otherwise be taxable. & Tax. Code, § 6092.)

What is a tax-exempt certificate?

A tax exempt certificate is a document used by the Internal Revenue Service to grant a tax exempt status to certain non-profit or charitable organizations. The certificate must be presented to the organization or institution in order for them to be recognized as tax exempt.

What items are tax-exempt in California?

Some items are exempt from sales and use tax, including:

Sales of certain food products for human consumption (many groceries)
Sales to the U.S. Government.
Sales of prescription medicine and certain medical devices.
Sales of items paid for with food stamps.

Do you need a business license to sell on Etsy in California?

8. Apply for Business Licenses and Permits. Etsy doesn’t require sellers to have a business license to sell products via its platform. However, the state, county, and local municipality where you’ve formed your business may require you to hold licenses and permits to operate your company legally.

Do I need a resale certificate in California?

You need to submit a Resale Certificate for each supplier, but if you make many purchases from the same supplier the initial certificate can be kept on file; you do not need a separate certificate for every purchase from the same supplier. Such purchases may also be subject to California’s use tax.