What is the difference?
| Seller's permit | Business license | |
|---|---|---|
| Issued by | The state revenue department | The city, county, or sometimes the state |
| Purpose | Collecting and remitting sales tax | Permission to operate a business in the area |
| Other names | Sales tax permit, sales and use tax license, certificate of authority | Business tax certificate, general business license |
| Depends on | Nexus and what you sell | Where you operate from and what you do |
When do you need a seller's permit?
When you have nexus in a state, through a presence there or sales above its economic threshold, and you sell taxable goods or services directly, such as through your own website or at markets. You need one in your home state for any direct taxable sales, and in other states once you have nexus there. See how to get a sales tax permit and economic nexus.
What if you only sell on marketplaces?
It depends on the state. California does not require a seller's permit if all your retail sales go through registered marketplace facilitators. Texas requires a permit from sellers based in Texas even if they only sell through marketplaces. See marketplace facilitator laws.
When do you need a business license?
Many cities and counties require a general business license, or business tax certificate, for any business operating within their limits, including online businesses run from home. Some also require a home occupation permit. Some states have a general state business license. Regulated activities, such as selling food, alcohol or certain goods, need specific licenses. Check your city and county websites.
For federal, state and local licenses beyond selling, see business licenses and permits for an LLC.
Do you need a DBA?
If you trade under a name that is not your own legal name, or your LLC's registered name, most states require you to register it as an assumed name or DBA. See what a DBA is and Articles of Organization explained.
What should a new online seller check?
State seller's permit
In your home state if you make any direct taxable sales.
Other states' permits
Where your sales or inventory create nexus.
City and county license
For your home or business address.
Home occupation permit
If your area requires one for home-based businesses.
DBA
If you trade under a different name.
Not sure what registrations you need?
We identify the permits and licenses your business needs in your state and city, and register you for them.
Questions people ask
Do I need a seller's permit to sell online?
Usually yes, in states where you have nexus and sell taxable goods directly. Marketplace-only sellers may not, depending on the state.
Is a seller's permit the same as a business license?
No. A seller's permit is a state sales tax registration. A business license is a local or state permission to operate.
Do I need a business license for an online business run from home?
Often yes. Many cities and counties require one, and some require a home occupation permit.
Do Amazon-only sellers need a seller's permit?
It depends on the state. California does not require one if all sales are through registered marketplaces; Texas requires one from Texas-based sellers.
Sources
Every fee, date and rule on this page was taken from these official and primary sources.
- California CDTFA: Publication 109, online marketplaces and fulfillment centers
- Texas Comptroller: Remote Sellers and Marketplace frequently asked questions
- Streamlined Sales Tax Governing Board: Marketplace facilitator state guidance
Rules and fees change. If you are reading this long after September 30, 2026, confirm the figures with the source before you rely on them.
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This guide is general information. It is not tax or legal advice for your situation.