Legal Question in Business Law in California

Taxes and permits required

My friend and I wish to start a sales representation business. We will not carry inventory of the products we sell, however we will be the ones invoiced by the vendors and we will in turn issue our own invoices to the customers. All products will be shipped out of state and in many cases, out of the country.

What are the types of sales permits that we need and how does this type of business work regarding sales taxes?


Asked on 10/05/99, 6:14 am

1 Answer from Attorneys

Joshua Genser Joshua G. Genser, Attorney at Law

Re: Taxes and permits required

You'll need a California resale license. Technically, you'll

probably also need a business license for each municipality in

which you do business, but, as a practical matter,

most people only get local business licenses in the

municipality in which their principal office is located. You may also

need permits to do the sorts of sales you are contemplating, but I can't tell without more details.

You'll have to pay sales taxes on your sales, at least within

California. For further advice, you should consult with

an attorney who can ask questions about your business

to be sure that all pertinent information is available.

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Answered on 10/07/99, 12:30 pm


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