What Is a Seller's Permit?

by Rick Suttle; Updated September 26, 2017

A seller's permit is required by any person or firm who runs a business within a county and state. Seller's permits can usually be obtained at the county clerk's office. A business owner must register his business name or DBA (doing business as) before a seller's permit can be issued.

Significance

A seller's permit legally allows a business to collect sales taxes from their customers for items that are sold retail. These taxes must be paid for all sales made within the state.

Identification

A seller's permit is also called a vendor's or reseller's license. A business must have an EIN, or employer's identification number, to complete the registration process. This is a unique number from which the state will identify the business. Individuals may use their Social Security number in lieu of an EIN.

Types of Seller's Licenses

A seller's permit can be used for entrepreneurs who work from home, in retail establishments, service-oriented businesses, manufacturers and even delivery companies with no specific retail location.

Other Types

Other seller's permit can include those that are designed for a specific event. Street vendors and individuals who operate a kiosk or newsstand must also have a seller's permit.

Considerations

Additional licenses may be required for certain types of companies. For example, liquor stores need to have a liquor license in addition to a seller's permit.

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