Seller Permit FAQs Back to All FAQs

Is a seller's permit the same as a business license?

No, a seller's permit and a business license are not the same thing, although they are both required for certain types of businesses.

A seller's permit, also known as a sales tax permit or a reseller's permit, is a permit issued by the state government that allows a business to collect sales tax on behalf of the state. If a business engages in retail sales or leases tangible property, it must obtain a seller's permit before it can legally sell or lease products or services. The permit is usually obtained from the state's tax agency and is valid for a specific period of time, after which it must be renewed.

A business license, on the other hand, is a general business registration that is typically issued by the city or county where the business is located. The business license allows the business to operate legally within the jurisdiction and ensures that the business complies with local laws and regulations. The license is usually obtained from the city or county clerk's office and is valid for a specific period of time, after which it must be renewed.

While a seller's permit and a business license serve different purposes, many businesses are required to obtain both permits in order to operate legally.

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